NYSE:TOL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Toll Brothers's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

NYSE:TOL

2.6%

US Consumer Durables

2.9%

US Market


1 Year Return

-8.1%

NYSE:TOL

7.1%

US Consumer Durables

0.2%

US Market

TOL underperformed the Consumer Durables industry which returned 4.8% over the past year.

TOL underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

TOLIndustryMarket
7 Day0.7%2.6%2.9%
30 Day-0.6%2.6%-2.3%
90 Day-1.1%4.5%3.1%
1 Year-7.0%-8.1%8.5%7.1%2.4%0.2%
3 Year16.6%13.6%36.1%32.1%41.7%32.4%
5 Year2.0%-0.6%31.5%23.2%55.1%37.9%

Price Volatility Vs. Market

How volatile is Toll Brothers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Toll Brothers undervalued based on future cash flows and its price relative to the stock market?

7.4x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Toll Brothers's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Toll Brothers's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Toll Brothers is good value based on earnings compared to the US Consumer Durables industry average.

Toll Brothers is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Toll Brothers is poor value based on expected growth next year.


Price Based on Value of Assets

Toll Brothers is good value based on assets compared to the US Consumer Durables industry average.


Next Steps

Future Growth

How is Toll Brothers expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Toll Brothers's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).

Toll Brothers's earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Toll Brothers's revenue growth is positive but not above the United States of America market average.

Toll Brothers's earnings growth is positive but not above the United States of America market average.

Toll Brothers's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Toll Brothers is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Toll Brothers performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Toll Brothers's year on year earnings growth rate has been positive over the past 5 years.

Toll Brothers's 1-year earnings growth is less than its 5-year average (11.1% vs 18.7%)

Toll Brothers's earnings growth has not exceeded the US Consumer Durables industry average in the past year (11.1% vs 17.1%).


Return on Equity

Toll Brothers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Toll Brothers used its assets less efficiently than the US Consumer Durables industry average last year based on Return on Assets.


Return on Capital Employed

Toll Brothers has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Toll Brothers's financial position?


Financial Position Analysis

Toll Brothers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Toll Brothers's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Toll Brothers's level of debt (75.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (88.7% vs 75.3% today).

Debt is well covered by operating cash flow (22.5%, greater than 20% of total debt).

Toll Brothers earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.6x debt.


Next Steps

Dividend

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

1.28%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Toll Brothers's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Toll Brothers's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Whilst dividend payments have been stable, Toll Brothers has been paying a dividend for less than 10 years.

Dividend payments have increased, but Toll Brothers only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (10.8x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Toll Brothers's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Doug Yearley (59yo)

9.2yrs

Tenure

US$9,965,247

Compensation

Mr. Douglas C. Yearley, also known as Doug, Jr., joined Toll Brothers Inc. in 1990 as an Assistant to the Chief Executive Officer with responsibility for land acquisitions. Mr. Yearley has been Chief Execu ...


CEO Compensation Analysis

Doug's remuneration is higher than average for companies of similar size in United States of America.

Doug's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.8yrs

Average Tenure

57yo

Average Age

The average tenure for the Toll Brothers management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.2yrs

Average Tenure

77yo

Average Age

The tenure for the Toll Brothers board of directors is about average.


Insider Trading

Toll Brothers individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$105,41404 Jun 19
Carl Marbach
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$35.14
SellUS$104,87810 Jan 19
Carl Marbach
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$34.96
SellUS$178,25517 Dec 18
Paul Shapiro
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,539
Max PriceUS$32.19
BuyUS$26902 Nov 18
Christine Garvey
EntityIndividual
Role
Member of the Board of Directors
Director
Shares9
Max PriceUS$29.87

Ownership Breakdown


Management Team

  • Bob Toll (78yo)

    Chairman Emeritus & Advisor

    • Tenure: 0.8yrs
    • Compensation: US$4.79m
  • Rick Hartman (62yo)

    President & COO

    • Tenure: 6.6yrs
    • Compensation: US$3.97m
  • Doug Yearley (59yo)

    Chairman & CEO

    • Tenure: 9.2yrs
    • Compensation: US$9.97m
  • Marty Connor (55yo)

    Senior VP & CFO

    • Tenure: 8.9yrs
    • Compensation: US$3.61m
  • Mccarron Sterling

    Chief Marketing Officer

    • Tenure: 0.0yrs
  • John McDonald (55yo)

    Chief Compliance Officer

    • Tenure: 9.1yrs
  • Fred Cooper

    Senior VP of Finance

    • Tenure: 0.0yrs
  • Michael Grubb (55yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.6yrs
  • John Critikos

    Chief Information Officer & Senior VP

    • Tenure: 0.0yrs
  • Joy Roman

    Chief Human Resources Officer & Senior VP

    • Tenure: 0.0yrs

Board Members

  • Paul Shapiro (77yo)

    Director

    • Tenure: 25.7yrs
    • Compensation: US$259.98k
  • Christine Garvey (73yo)

    Director

    • Tenure: 9.9yrs
    • Compensation: US$239.98k
  • Stephen Novick (78yo)

    Director

    • Tenure: 16.6yrs
    • Compensation: US$249.98k
  • Bob Toll (78yo)

    Chairman Emeritus & Advisor

    • Tenure: 0.8yrs
    • Compensation: US$4.79m
  • Ed Boehne (78yo)

    Lead Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$269.98k
  • Richard Braemer (77yo)

    Director

    • Tenure: 32.9yrs
    • Compensation: US$224.98k
  • Carl Marbach (77yo)

    Director

    • Tenure: 27.7yrs
    • Compensation: US$269.98k
  • Doug Yearley (59yo)

    Chairman & CEO

    • Tenure: 9.2yrs
    • Compensation: US$9.97m
  • Wendell Pritchett (54yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$46.70k
  • Jac McLean (49yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$229.98k

Company Information

Toll Brothers, Inc.'s company bio, 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$5.073b
  • Shares outstanding: 143.87m
  • Website: https://www.tollbrothers.com

Number of Employees


Location

  • Toll Brothers, Inc.
  • 250 Gibraltar Road
  • Horsham
  • Pennsylvania
  • 19044
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TOLNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1986
TLKDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1986
0LFSLSE (London Stock Exchange)YesCommon StockGBUSDJul 1986

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:43
End of Day Share Price2019/08/21 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.