TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
USA - NYSE:TOL - US8894781033 - Common Stock
135 USD
+1.22 (+0.91%)
TOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 industry peers in the Household Durables industry. TOL scores excellent on profitability, but there are some minor concerns on its financial health. TOL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TOL was profitable.
TOL had a positive operating cash flow in the past year.
Each year in the past 5 years TOL has been profitable.
In the past 5 years TOL always reported a positive cash flow from operatings.
1.2 Ratios
TOL's Return On Assets of 9.55% is amongst the best of the industry. TOL outperforms 80.33% of its industry peers.
TOL has a Return On Equity of 16.99%. This is in the better half of the industry: TOL outperforms 75.41% of its industry peers.
TOL's Return On Invested Capital of 11.94% is fine compared to the rest of the industry. TOL outperforms 78.69% of its industry peers.
TOL had an Average Return On Invested Capital over the past 3 years of 13.26%. This is above the industry average of 9.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.55% | ||
| ROE | 16.99% | ||
| ROIC | 11.94% |
ROA(3y)11.06%
ROA(5y)8.89%
ROE(3y)20.7%
ROE(5y)17.4%
ROIC(3y)13.26%
ROIC(5y)10.59%
1.3 Margins
With an excellent Profit Margin value of 12.64%, TOL belongs to the best of the industry, outperforming 91.80% of the companies in the same industry.
TOL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.27%, TOL belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
TOL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.65%, TOL is in line with its industry, outperforming 52.46% of the companies in the same industry.
TOL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.27% | ||
| PM (TTM) | 12.64% | ||
| GM | 25.65% |
OM growth 3Y17.51%
OM growth 5Y14.86%
PM growth 3Y15.15%
PM growth 5Y12.14%
GM growth 3Y8.08%
GM growth 5Y7.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TOL is still creating some value.
TOL has less shares outstanding than it did 1 year ago.
TOL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TOL has an improved debt to assets ratio.
2.2 Solvency
TOL has an Altman-Z score of 4.01. This indicates that TOL is financially healthy and has little risk of bankruptcy at the moment.
TOL's Altman-Z score of 4.01 is fine compared to the rest of the industry. TOL outperforms 63.93% of its industry peers.
TOL has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as TOL would need 3.20 years to pay back of all of its debts.
TOL's Debt to FCF ratio of 3.20 is fine compared to the rest of the industry. TOL outperforms 67.21% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that TOL is not too dependend on debt financing.
The Debt to Equity ratio of TOL (0.36) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 4.01 |
ROIC/WACC1.41
WACC8.46%
2.3 Liquidity
A Current Ratio of 3.72 indicates that TOL has no problem at all paying its short term obligations.
TOL has a better Current ratio (3.72) than 65.57% of its industry peers.
TOL has a Quick Ratio of 3.72. This is a bad value and indicates that TOL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TOL (0.35) is worse than 93.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.02% over the past year.
TOL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.96% yearly.
Looking at the last year, TOL shows a small growth in Revenue. The Revenue has grown by 3.26% in the last year.
TOL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.47% yearly.
EPS 1Y (TTM)2.02%
EPS 3Y27.67%
EPS 5Y27.96%
EPS Q2Q%3.61%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%7.96%
3.2 Future
Based on estimates for the next years, TOL will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.50% on average per year.
TOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.97% yearly.
EPS Next Y0.52%
EPS Next 2Y0.73%
EPS Next 3Y3.67%
EPS Next 5Y9.5%
Revenue Next Year1.7%
Revenue Next 2Y0.53%
Revenue Next 3Y1.6%
Revenue Next 5Y6.97%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
TOL is valuated reasonably with a Price/Earnings ratio of 9.92.
TOL's Price/Earnings ratio is a bit cheaper when compared to the industry. TOL is cheaper than 65.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of TOL to the average of the S&P500 Index (26.06), we can say TOL is valued rather cheaply.
A Price/Forward Earnings ratio of 9.60 indicates a reasonable valuation of TOL.
70.49% of the companies in the same industry are more expensive than TOL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 32.73. TOL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
TOL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TOL is cheaper than 60.66% of the companies in the same industry.
TOL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TOL is cheaper than 65.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.17 | ||
| EV/EBITDA | 8.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TOL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of TOL may justify a higher PE ratio.
PEG (NY)19
PEG (5Y)0.35
EPS Next 2Y0.73%
EPS Next 3Y3.67%
5. Dividend
5.1 Amount
TOL has a yearly dividend return of 0.75%, which is pretty low.
TOL's Dividend Yield is a higher than the industry average which is at 3.32.
Compared to an average S&P500 Dividend Yield of 2.36, TOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
On average, the dividend of TOL grows each year by 15.67%, which is quite nice.
TOL has been paying a dividend for over 5 years, so it has already some track record.
As TOL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)15.67%
Div Incr Years4
Div Non Decr Years7
5.3 Sustainability
7.01% of the earnings are spent on dividend by TOL. This is a low number and sustainable payout ratio.
The dividend of TOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP7.01%
EPS Next 2Y0.73%
EPS Next 3Y3.67%
NYSE:TOL (11/10/2025, 3:36:46 PM)
135
+1.22 (+0.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners93.35%
Inst Owner Change-2.06%
Ins Owners0.64%
Ins Owner Change-4.5%
Market Cap13.01B
Revenue(TTM)10.88B
Net Income(TTM)1.38B
Analysts77.27
Price Target154.38 (14.36%)
Short Float %3.2%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend0.92
Dividend Growth(5Y)15.67%
DP7.01%
Div Incr Years4
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.47%
Min EPS beat(2)2.49%
Max EPS beat(2)22.46%
EPS beat(4)3
Avg EPS beat(4)3.92%
Min EPS beat(4)-15.06%
Max EPS beat(4)22.46%
EPS beat(8)6
Avg EPS beat(8)4.81%
EPS beat(12)10
Avg EPS beat(12)12.79%
EPS beat(16)14
Avg EPS beat(16)12.54%
Revenue beat(2)2
Avg Revenue beat(2)5.14%
Min Revenue beat(2)2.4%
Max Revenue beat(2)7.87%
Revenue beat(4)3
Avg Revenue beat(4)1.94%
Min Revenue beat(4)-4.38%
Max Revenue beat(4)7.87%
Revenue beat(8)6
Avg Revenue beat(8)2.39%
Revenue beat(12)10
Avg Revenue beat(12)5.54%
Revenue beat(16)12
Avg Revenue beat(16)4.9%
PT rev (1m)0.23%
PT rev (3m)6.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.7%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 9.6 | ||
| P/S | 1.2 | ||
| P/FCF | 14.17 | ||
| P/OCF | 13.08 | ||
| P/B | 1.61 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 8.07 |
EPS(TTM)13.61
EY10.08%
EPS(NY)14.06
Fwd EY10.42%
FCF(TTM)9.53
FCFY7.06%
OCF(TTM)10.32
OCFY7.65%
SpS112.85
BVpS84
TBVpS84
PEG (NY)19
PEG (5Y)0.35
Graham Number160.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.55% | ||
| ROE | 16.99% | ||
| ROCE | 15.94% | ||
| ROIC | 11.94% | ||
| ROICexc | 12.93% | ||
| ROICexgc | 13.06% | ||
| OM | 16.27% | ||
| PM (TTM) | 12.64% | ||
| GM | 25.65% | ||
| FCFM | 8.44% |
ROA(3y)11.06%
ROA(5y)8.89%
ROE(3y)20.7%
ROE(5y)17.4%
ROIC(3y)13.26%
ROIC(5y)10.59%
ROICexc(3y)15.3%
ROICexc(5y)12.36%
ROICexgc(3y)15.57%
ROICexgc(5y)12.57%
ROCE(3y)17.71%
ROCE(5y)14.14%
ROICexgc growth 3Y16.35%
ROICexgc growth 5Y20.45%
ROICexc growth 3Y16.42%
ROICexc growth 5Y20.38%
OM growth 3Y17.51%
OM growth 5Y14.86%
PM growth 3Y15.15%
PM growth 5Y12.14%
GM growth 3Y8.08%
GM growth 5Y7.34%
F-Score4
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 88.96% | ||
| Cap/Sales | 0.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.6% | ||
| Profit Quality | 66.78% | ||
| Current Ratio | 3.72 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 4.01 |
F-Score4
WACC8.46%
ROIC/WACC1.41
Cap/Depr(3y)93.15%
Cap/Depr(5y)105.24%
Cap/Sales(3y)0.7%
Cap/Sales(5y)0.88%
Profit Quality(3y)72.56%
Profit Quality(5y)113.39%
High Growth Momentum
Growth
EPS 1Y (TTM)2.02%
EPS 3Y27.67%
EPS 5Y27.96%
EPS Q2Q%3.61%
EPS Next Y0.52%
EPS Next 2Y0.73%
EPS Next 3Y3.67%
EPS Next 5Y9.5%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%7.96%
Revenue Next Year1.7%
Revenue Next 2Y0.53%
Revenue Next 3Y1.6%
Revenue Next 5Y6.97%
EBIT growth 1Y-11.15%
EBIT growth 3Y26.05%
EBIT growth 5Y24.59%
EBIT Next Year-2.58%
EBIT Next 3Y0.4%
EBIT Next 5Y6.5%
FCF growth 1Y-50.07%
FCF growth 3Y-8.84%
FCF growth 5Y21.71%
OCF growth 1Y-47.87%
OCF growth 3Y-8.14%
OCF growth 5Y18.21%
TOLL BROTHERS INC / TOL FAQ
What is the ChartMill fundamental rating of TOLL BROTHERS INC (TOL) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TOL.
What is the valuation status of TOLL BROTHERS INC (TOL) stock?
ChartMill assigns a valuation rating of 6 / 10 to TOLL BROTHERS INC (TOL). This can be considered as Fairly Valued.
Can you provide the profitability details for TOLL BROTHERS INC?
TOLL BROTHERS INC (TOL) has a profitability rating of 8 / 10.
What are the PE and PB ratios of TOLL BROTHERS INC (TOL) stock?
The Price/Earnings (PE) ratio for TOLL BROTHERS INC (TOL) is 9.92 and the Price/Book (PB) ratio is 1.61.
How sustainable is the dividend of TOLL BROTHERS INC (TOL) stock?
The dividend rating of TOLL BROTHERS INC (TOL) is 5 / 10 and the dividend payout ratio is 7.01%.