TOLL BROTHERS INC (TOL)
US8894781033 - Common Stock
TOL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. While TOL has a great profitability rating, there are some minor concerns on its financial health. TOL is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make TOL suitable for value investing!
1. Profitability
1.1 Basic Checks
TOL had positive earnings in the past year.
In the past year TOL had a positive cash flow from operations.
In the past 5 years TOL has always been profitable.
In the past 5 years TOL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TOL (11.34%) is better than 81.82% of its industry peers.
TOL has a better Return On Equity (20.23%) than 83.33% of its industry peers.
The Return On Invested Capital of TOL (13.82%) is better than 84.85% of its industry peers.
TOL had an Average Return On Invested Capital over the past 3 years of 11.30%. This is in line with the industry average of 10.04%.
The 3 year average ROIC (11.30%) for TOL is below the current ROIC(13.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.34% | ||
| ROE | 20.23% | ||
| ROIC | 13.82% |
ROA(3y)9.55%
ROA(5y)7.63%
ROE(3y)19.12%
ROE(5y)15.63%
ROIC(3y)11.3%
ROIC(5y)8.83%
1.3 Margins
With an excellent Profit Margin value of 13.97%, TOL belongs to the best of the industry, outperforming 89.39% of the companies in the same industry.
TOL's Profit Margin has improved in the last couple of years.
The Operating Margin of TOL (17.79%) is better than 90.91% of its industry peers.
TOL's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 26.92%, TOL perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
In the last couple of years the Gross Margin of TOL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.79% | ||
| PM (TTM) | 13.97% | ||
| GM | 26.92% |
OM growth 3Y30.47%
OM growth 5Y9.42%
PM growth 3Y29.54%
PM growth 5Y5.56%
GM growth 3Y9.57%
GM growth 5Y5.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TOL is 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 4.23. This indicates that TOL is financially healthy and has little risk of bankruptcy at the moment.
TOL has a Altman-Z score of 4.23. This is in the better half of the industry: TOL outperforms 68.18% of its industry peers.
TOL has a debt to FCF ratio of 2.18. This is a good value and a sign of high solvency as TOL would need 2.18 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.18, TOL is in the better half of the industry, outperforming 65.15% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that TOL is not too dependend on debt financing.
TOL has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: TOL outperforms 43.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 4.23 |
ROIC/WACC1.35
WACC10.21%
2.3 Liquidity
A Current Ratio of 3.97 indicates that TOL has no problem at all paying its short term obligations.
TOL has a Current ratio of 3.97. This is in the better half of the industry: TOL outperforms 69.70% of its industry peers.
TOL has a Quick Ratio of 3.97. This is a bad value and indicates that TOL is not financially healthy enough and could expect problems in meeting its short term obligations.
TOL has a Quick ratio of 0.43. This is amonst the worse of the industry: TOL underperforms 93.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.97 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.08% over the past year.
Measured over the past years, TOL shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.45% on average per year.
The Revenue has decreased by -0.99% in the past year.
TOL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.95% yearly.
EPS 1Y (TTM)22.08%
EPS 3Y53.14%
EPS 5Y21.45%
EPS growth Q2Q32.35%
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y12.19%
Revenue growth 5Y6.95%
Revenue growth Q2Q9.42%
3.2 Future
The Earnings Per Share is expected to grow by 8.38% on average over the next years. This is quite good.
TOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.16% yearly.
EPS Next Y11.93%
EPS Next 2Y5.82%
EPS Next 3Y6.92%
EPS Next 5Y8.38%
Revenue Next Year3.37%
Revenue Next 2Y5.29%
Revenue Next 3Y5.81%
Revenue Next 5Y7.16%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.83 indicates a reasonable valuation of TOL.
Based on the Price/Earnings ratio, TOL is valued a bit cheaper than 75.76% of the companies in the same industry.
When comparing the Price/Earnings ratio of TOL to the average of the S&P500 Index (27.73), we can say TOL is valued rather cheaply.
A Price/Forward Earnings ratio of 9.17 indicates a reasonable valuation of TOL.
83.33% of the companies in the same industry are more expensive than TOL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TOL to the average of the S&P500 Index (20.41), we can say TOL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 9.17 |
4.2 Price Multiples
TOL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TOL is cheaper than 68.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TOL indicates a somewhat cheap valuation: TOL is cheaper than 68.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.6 | ||
| EV/EBITDA | 7.88 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.82
PEG (5Y)0.46
EPS Next 2Y5.82%
EPS Next 3Y6.92%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, TOL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.06, TOL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, TOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of TOL grows each year by 15.91%, 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)15.91%
Div Incr Years3
Div Non Decr Years6
5.3 Sustainability
TOL pays out 6.44% of its income as dividend. This is a sustainable payout ratio.
TOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP6.44%
EPS Next 2Y5.82%
EPS Next 3Y6.92%
TOLL BROTHERS INC
NYSE:TOL (5/6/2024, 2:02:23 PM)
127.18
+3.55 (+2.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.25B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 9.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.82
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.34% | ||
| ROE | 20.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.79% | ||
| PM (TTM) | 13.97% | ||
| GM | 26.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.97 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)22.08%
EPS 3Y53.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y12.19%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y