Toll Brothers
Market Cap
US$6.2b
Last Updated
2020/02/17 00:04 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Snowflake Analysis
Adequate 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
Stable Share Price: TOL has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.1%
TOL
1.7%
US Consumer Durables
1.5%
US Market
1 Year Return
29.1%
TOL
35.4%
US Consumer Durables
20.1%
US Market
Return vs Industry: TOL underperformed the US Consumer Durables industry which returned 35.4% over the past year.
Return vs Market: TOL exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| TOL | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.1% | 1.7% | 1.5% |
| 30 Day | 7.7% | 4.4% | 1.4% |
| 90 Day | 19.1% | 8.2% | 8.7% |
| 1 Year | 30.6%29.1% | 37.3%35.4% | 22.7%20.1% |
| 3 Year | 55.9%51.1% | 37.4%31.2% | 50.1%40.5% |
| 5 Year | 32.3%28.2% | 40.0%30.7% | 73.1%54.1% |
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
1 week ago | Simply Wall St
Is Toll Brothers, Inc. (NYSE:TOL) Expensive For A Reason? A Look At Its Intrinsic Value3 weeks ago | Simply Wall St
Is Toll Brothers, Inc. (NYSE:TOL) Potentially Undervalued?1 month ago | Simply Wall St
Be Sure To Check Out Toll Brothers, Inc. (NYSE:TOL) Before It Goes Ex-DividendValuation
Is Toll Brothers undervalued compared to its fair value and its price relative to the market?
11.69x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TOL ($47.58) is trading above our estimate of fair value ($26.05)
Significantly Below Fair Value: TOL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TOL is good value based on its PE Ratio (11.7x) compared to the Consumer Durables industry average (13.5x).
PE vs Market: TOL is good value based on its PE Ratio (11.7x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: TOL is poor value based on its PEG Ratio (6.6x)
Price to Book Ratio
PB vs Industry: TOL is good value based on its PB Ratio (1.3x) compared to the US Consumer Durables industry average (1.5x).
Next Steps
Future Growth
How is Toll Brothers forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
1.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TOL's forecast earnings growth (1.8% per year) is above the savings rate (1.7%).
Earnings vs Market: TOL's earnings (1.8% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: TOL's earnings are forecast to grow, but not significantly.
Revenue vs Market: TOL's revenue (2.9% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: TOL's revenue (2.9% 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 (8.9%).
Next Steps
Past Performance
How has Toll Brothers performed over the past 5 years?
17.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TOL has high quality earnings.
Growing Profit Margin: TOL's current net profit margins (8.2%) are lower than last year (10.5%).
Past Earnings Growth Analysis
Earnings Trend: TOL's earnings have grown by 17.2% per year over the past 5 years.
Accelerating Growth: TOL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TOL had negative earnings growth (-21.1%) over the past year, making it difficult to compare to the Consumer Durables industry average (9.1%).
Return on Equity
High ROE: TOL's Return on Equity (11.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Toll Brothers's financial position?
Financial Position Analysis
Short Term Liabilities: TOL's short term assets ($9.7B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: TOL's short term assets ($9.7B) exceed its long term liabilities ($4.2B).
Debt to Equity History and Analysis
Debt Level: TOL's debt to equity ratio (76.6%) is considered high.
Reducing Debt: TOL's debt to equity ratio has reduced from 87.5% to 76.6% over the past 5 years.
Debt Coverage: TOL's debt is not well covered by operating cash flow (11.2%).
Interest Coverage: TOL earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: TOL has a high level of physical assets or inventory.
Debt Coverage by Assets: TOL's debt is covered by short term assets (assets are 2.5x debt).
Next Steps
Dividend
What is Toll Brothers's current dividend yield, its reliability and sustainability?
0.92%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TOL's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: TOL's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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 3 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (10.8%), 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 (10.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.2yrs
Average management tenure
CEO
Doug Yearley (59yo)
9.7yrs
Tenure
US$10,744,205
Compensation
Mr. Douglas C. Yearley, Jr., also known as Doug, serves as President at Toll Brothers, Inc. since November 1, 2019. He joined Toll Brothers Inc. in 1990 as an Assistant to the Chief Executive Officer with ...
CEO Compensation Analysis
Compensation vs Market: Doug's total compensation ($USD10.74M) is above average for companies of similar size in the US market ($USD6.26M).
Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 9.7yrs | US$10.74m | 0.25% $15.3m | |
| Senior VP & CFO | 9.4yrs | US$4.13m | 0.061% $3.8m | |
| Executive VP & Co-COO | 0.3yrs | no data | 0.0029% $181.7k | |
| Executive VP & Co-COO | 0.3yrs | no data | 0.0067% $420.1k | |
| Senior VP & Chief Accounting Officer | 2.1yrs | no data | 0.0013% $81.2k | |
| Chief Information Officer & Senior VP | 0yrs | no data | no data | |
| Senior VP of Finance | 0yrs | no data | no data | |
| Chief Marketing Officer | 0.3yrs | no data | no data | |
| Chief Human Resources Officer & Senior VP | 0yrs | no data | no data | |
| Senior Vice President of Tax | 0yrs | no data | no data |
1.2yrs
Average Tenure
55yo
Average Age
Experienced Management: TOL's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 9.7yrs | US$10.74m | 0.25% $15.3m | |
| Independent Director | 26.2yrs | US$266.57k | 0.086% $5.3m | |
| Independent Director | 10.4yrs | US$246.59k | 0.0061% $378.3k | |
| Independent Director | 17.1yrs | US$254.97k | 0.011% $715.4k | |
| Chairman Emeritus & Special Advisor | 1.3yrs | US$3.31m | 8.37% $522.7m | |
| Lead Independent Director | 8.9yrs | US$301.57k | 0.039% $2.4m | |
| Independent Director | 33.4yrs | US$229.97k | 0.068% $4.3m | |
| Independent Director | 28.2yrs | US$276.59k | 0.075% $4.7m | |
| Independent Director | 1.9yrs | US$172.77k | no data | |
| Independent Director | 3.9yrs | US$239.48k | 0.0035% $216.0k |
9.7yrs
Average Tenure
77yo
Average Age
Experienced Board: TOL's board of directors are considered experienced (9.7 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 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$6.243b
- Shares outstanding: 131.21m
- Website: https://www.tollbrothers.com
Number of Employees
Location
- Toll Brothers, Inc.
- 250 Gibraltar Road
- Horsham
- Pennsylvania
- 19044
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TOL | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jul 1986 |
| TLK | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 1986 |
| 0LFS | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jul 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 company operates in two segments, Traditional Home Building and City Living. It also designs, builds, markets, and sells homes in urban infill markets through Toll Brothers City Living. In addition, the company develops, owns, and operates golf courses and country clubs; develops and sells land; and develops, operates, and rents apartments, as well as provides homeowners with home automation and technology options. Further, it owns and operates architectural, engineering, mortgage, title, landscaping, lumber distribution, house component assembly, and manufacturing operations. The company serves move-up, empty-nester, active-adult, and second-home buyers. Toll Brothers, Inc. was founded in 1967 and is headquartered in Horsham, Pennsylvania.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:04 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/10/31 |
| Annual Earnings | 2019/10/31 |
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.