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TOL

Toll BrothersNYSE:TOL Stock Report

Market Cap

US$7.8b

7D

-2.3%

1Y

35.6%

Updated

26 Nov, 2021

Data

Company Financials +
TOL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends2/6

TOL Stock Overview

Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States.

Toll Brothers Competitors

D.R. Horton

NYSE:DHI

US$35.2b

Lennar

NYSE:LEN

US$32.4b

PulteGroup

NYSE:PHM

US$13.1b

Meritage Homes

NYSE:MTH

US$4.3b

Price History & Performance

Summary of all time highs, changes and price drops for Toll Brothers
Historical stock prices
Current Share PriceUS$64.47
52 Week HighUS$68.88
52 Week LowUS$41.22
Beta1.56
1 Month Change8.35%
3 Month Change0.047%
1 Year Change35.56%
3 Year Change95.54%
5 Year Change119.88%
Change since IPO8,496.00%

Recent News & Updates

Sep 22
A Look At The Fair Value Of Toll Brothers, Inc. (NYSE:TOL)

A Look At The Fair Value Of Toll Brothers, Inc. (NYSE:TOL)

In this article we are going to estimate the intrinsic value of Toll Brothers, Inc. ( NYSE:TOL ) by taking the expected...

Aug 26

Toll Brothers: Growth Has Peaked

Toll Brothers have positioned themselves in fast-growing regions in the United States, driving housing growth and demand. But as those markets begin cooling down, the company's potential growth rate is unlikely to outperform the overall market. As a result, I turn neutral on the company's long-term prospects.

Shareholder Returns

TOLUS Consumer DurablesUS Market
7D-2.3%-2.5%-2.7%
1Y35.6%26.4%21.3%

Return vs Industry: TOL exceeded the US Consumer Durables industry which returned 26.4% over the past year.

Return vs Market: TOL exceeded the US Market which returned 21.3% over the past year.

Price Volatility

Is TOL's price volatile compared to industry and market?
TOL volatility
TOL Average Weekly Movement3.9%
Consumer Durables Industry Average Movement5.5%
Market Average Movement5.9%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.2%

Stable Share Price: TOL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TOL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19674,500Doug Yearleyhttps://www.tollbrothers.com

Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. The company operates in two segments, Traditional Home Building and Urban Infill. It also designs, builds, markets, and sells homes in urban infill markets through Toll Brothers City Living.

Toll Brothers Fundamentals Summary

How do Toll Brothers's earnings and revenue compare to its market cap?
TOL fundamental statistics
Market CapUS$7.85b
Earnings (TTM)US$658.61m
Revenue (TTM)US$8.29b

11.9x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TOL income statement (TTM)
RevenueUS$8.29b
Cost of RevenueUS$6.49b
Gross ProfitUS$1.80b
ExpensesUS$1.14b
EarningsUS$658.61m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

Dec 07, 2021

Earnings per share (EPS)5.41
Gross Margin21.71%
Net Profit Margin7.94%
Debt/Equity Ratio70.6%

How did TOL perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

11%

Payout Ratio

Valuation

Is Toll Brothers undervalued compared to its fair value and its price relative to the market?

13.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TOL ($64.47) is trading below our estimate of fair value ($74.78)

Significantly Below Fair Value: TOL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TOL is poor value based on its PE Ratio (11.9x) compared to the US Consumer Durables industry average (10.8x).

PE vs Market: TOL is good value based on its PE Ratio (11.9x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: TOL is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: TOL is good value based on its PB Ratio (1.6x) compared to the US Consumer Durables industry average (1.9x).


Future Growth

How is Toll Brothers forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOL's forecast earnings growth (9.8% per year) is above the savings rate (2%).

Earnings vs Market: TOL's earnings (9.8% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: TOL's earnings are forecast to grow, but not significantly.

Revenue vs Market: TOL's revenue (6.7% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: TOL's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TOL's Return on Equity is forecast to be low in 3 years time (16.3%).


Past Performance

How has Toll Brothers performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TOL has high quality earnings.

Growing Profit Margin: TOL's current net profit margins (7.9%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: TOL's earnings have grown by 4.3% per year over the past 5 years.

Accelerating Growth: TOL's earnings growth over the past year (46.5%) exceeds its 5-year average (4.3% per year).

Earnings vs Industry: TOL earnings growth over the past year (46.5%) underperformed the Consumer Durables industry 69.8%.


Return on Equity

High ROE: TOL's Return on Equity (13%) is considered low.


Financial Health

How is Toll Brothers's financial position?


Financial Position Analysis

Short Term Liabilities: TOL's short term assets ($9.8B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: TOL's short term assets ($9.8B) exceed its long term liabilities ($4.2B).


Debt to Equity History and Analysis

Debt Level: TOL's net debt to equity ratio (52%) is considered high.

Reducing Debt: TOL's debt to equity ratio has reduced from 92.7% to 70.6% over the past 5 years.

Debt Coverage: TOL's debt is well covered by operating cash flow (36.6%).

Interest Coverage: TOL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Toll Brothers's current dividend yield, its reliability and sustainability?

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TOL's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: TOL's dividend (1.05%) is low compared to the top 25% of dividend payers in the US market (3.58%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TOL has been paying a dividend for less than 10 years.

Growing Dividend: TOL's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.7%), TOL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TOL's dividends in 3 years are forecast to be thoroughly covered by earnings (7.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Doug Yearley (61 yo)

11.42yrs

Tenure

US$10,024,022

Compensation

Mr. Douglas C. Yearley, Jr., also known as Doug, serves as President at Toll Brothers, Inc. since November 1, 2019. He joined Toll Brothers Inc. in 1990 as an Assistant to the Chief Executive Officer with...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD10.02M) is above average for companies of similar size in the US market ($USD6.24M).

Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TOL's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: TOL's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Toll Brothers, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Toll Brothers, Inc.
  • Ticker: TOL
  • Exchange: NYSE
  • Founded: 1967
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$7.847b
  • Shares outstanding: 121.72m
  • Website: https://www.tollbrothers.com

Number of Employees


Location

  • Toll Brothers, Inc.
  • 1140 Virginia Drive
  • Fort Washington
  • Pennsylvania
  • 19034
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 23:22
End of Day Share Price2021/11/26 00:00
Earnings2021/07/31
Annual Earnings2020/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.