Toll Brothers (TOL) Stock Analysis
This is a peer-relative look at Toll Brothers (TOL): its performance, risk, profitability, financial strength, dividend, and valuation are each measured against its Consumer Durables & Apparel peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | TOL |
|---|---|
| Name | Toll Brothers Inc |
| Country/Region | United States |
| GICS Sector | Consumer Discretionary |
| GICS Industry Group | Consumer Durables & Apparel |
| GICS Industry | Household Durables |
| GICS Sub-Industry | Homebuilding |
| Market Capitalization | 14.20 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | July 8, 1986 |
| Security Type | Common Stock |
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: TOL | Industry group median |
|---|---|---|
| Total Return (1Y) | 41.35% | 20.33% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: TOL | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 34.81% | 42.86% |
| Beta (5Y) | 1.35 | 1.27 |
Profitability
ROE (TTM)
Toll Brothers (TOL) posts ROE of 15.66%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
TOL
Consumer Durables & Apparel industry group
15.66%
Group distribution
- Max
- 35.09%
- Q3
- 17.68%
- TOL
- 15.66%
- Median
- 10.01%
- Q1
- 4.69%
- Min
- -12.26%
Largest peers
- TPR
- 60.91%
- RL
- 34.66%
- GRMN
- 19.90%
- NKE
- 16.02%
- TOL
- 15.66%
- DHI
- 13.08%
- SONY
- 12.34%
Net Margin (TTM)
Toll Brothers (TOL) keeps 11.66% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
TOL
Consumer Durables & Apparel industry group
11.66%
Group distribution
- Max
- 18.71%
- TOL
- 11.66%
- Q3
- 8.48%
- Median
- 4.96%
- Q1
- 1.57%
- Min
- -6.07%
Largest peers
- GRMN
- 23.26%
- TOL
- 11.66%
- RL
- 11.60%
- DHI
- 9.51%
- TPR
- 8.44%
- NKE
- 4.84%
- SONY
- -2.62%
Operating Margin (TTM)
Toll Brothers (TOL) turns 15.08% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
TOL
Consumer Durables & Apparel industry group
15.08%
Group distribution
- Max
- 26.93%
- TOL
- 15.08%
- Q3
- 13.28%
- Median
- 8.03%
- Q1
- 3.82%
- Min
- -9.19%
Largest peers
- GRMN
- 24.62%
- TPR
- 22.42%
- TOL
- 15.08%
- RL
- 13.37%
- DHI
- 11.26%
- SONY
- 10.74%
- NKE
- 6.94%
Profitability at a Glance
| Metric | Current stock: TOL | Industry group median |
|---|---|---|
| ROE (TTM) | 15.66% | 10.01% |
| ROA (TTM) | 7.53% | 5.29% |
| Net Margin (TTM) | 11.66% | 4.96% |
| Operating Margin (TTM) | 15.08% | 8.03% |
| Gross Margin (TTM) | 25.20% | 42.20% |
Financial Strength
Current Ratio (MRQ)
Toll Brothers (TOL) has current ratio of 4.60, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.
TOL
Consumer Durables & Apparel industry group
4.60
Group distribution
- Max
- 8.27
- TOL
- 4.60
- Q3
- 4.35
- Median
- 2.42
- Q1
- 1.67
- Min
- 0.78
Largest peers
- DHI
- 6.37
- TOL
- 4.60
- GRMN
- 4.36
- NKE
- 2.14
- RL
- 2.13
- TPR
- 1.84
- SONY
- 1.18
Debt / Equity (MRQ)
Toll Brothers (TOL) has debt-to-equity ratio of 0.34, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
TOL
Consumer Durables & Apparel industry group
0.34
Group distribution
- Max
- 2.69
- Q3
- 1.30
- Median
- 0.52
- TOL
- 0.34
- Q1
- 0.24
- Min
- 0.00
Largest peers
- TPR
- 5.75
- RL
- 1.06
- NKE
- 0.79
- TOL
- 0.34
- DHI
- 0.27
- SONY
- 0.20
- GRMN
- 0.02
Financial Strength at a Glance
| Metric | Current stock: TOL | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 4.60 | 2.42 |
| Debt / Equity (MRQ) | 0.34 | 0.52 |
| Net Debt / EBITDA | 1.01 | 1.85 |
Dividends
Dividend Yield (TTM)
Toll Brothers (TOL) has dividend yield of 0.65%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
TOL
Consumer Durables & Apparel industry group
0.65%
Group distribution
- Max
- 4.48%
- Q3
- 2.26%
- Median
- 0.72%
- TOL
- 0.65%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- SONY
- 122.97%
- NKE
- 3.58%
- GRMN
- 1.79%
- TPR
- 1.08%
- DHI
- 1.08%
- RL
- 0.88%
- TOL
- 0.65%
Dividend Payout Ratio (TTM)
Toll Brothers (TOL) has payout ratio of 7.67%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
TOL
Consumer Durables & Apparel industry group
7.67%
Group distribution
- Max
- 99.29%
- Q3
- 40.18%
- Median
- 10.85%
- TOL
- 7.67%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- NKE
- 106.58%
- TPR
- 47.26%
- GRMN
- 40.18%
- RL
- 24.16%
- DHI
- 15.96%
- SONY
- 14.25%
- TOL
- 7.67%
Dividends at a Glance
| Metric | Current stock: TOL | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.65% | 0.72% |
| Dividend Payout Ratio (TTM) | 7.67% | 10.85% |
Valuation
P/E Ratio (TTM)
Toll Brothers (TOL) trades at P/E ratio of 11.54, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.
TOL
Consumer Durables & Apparel industry group
11.54
Group distribution
- Max
- 50.73
- Q3
- 29.56
- Median
- 19.68
- Q1
- 13.70
- TOL
- 11.54
- Min
- 6.62
Largest peers
- TPR
- 45.49
- NKE
- 28.41
- RL
- 27.18
- GRMN
- 26.38
- SONY
- 18.41
- DHI
- 14.64
- TOL
- 11.54
P/S Ratio (TTM)
Toll Brothers (TOL) trades at 1.29 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
TOL
Consumer Durables & Apparel industry group
1.29
Group distribution
- Max
- 3.87
- Q3
- 1.91
- TOL
- 1.29
- Median
- 1.12
- Q1
- 0.59
- Min
- 0.01
Largest peers
- GRMN
- 6.11
- TPR
- 3.84
- RL
- 3.01
- NKE
- 1.37
- DHI
- 1.33
- TOL
- 1.29
- SONY
- 0.01
P/B Ratio (MRQ)
Toll Brothers (TOL) trades at 1.68 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
TOL
Consumer Durables & Apparel industry group
1.68
Group distribution
- Max
- 8.92
- Q3
- 4.38
- Median
- 2.01
- TOL
- 1.68
- Q1
- 1.08
- Min
- 0.61
Largest peers
- TPR
- 44.23
- RL
- 8.69
- GRMN
- 4.92
- NKE
- 4.54
- SONY
- 2.29
- DHI
- 1.88
- TOL
- 1.68
Valuation at a Glance
| Metric | Current stock: TOL | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 11.54 | 19.68 |
| P/S Ratio (TTM) | 1.29 | 1.12 |
| P/B Ratio (MRQ) | 1.68 | 2.01 |
| Free Cash Flow Yield (TTM) | 4.45% | 4.73% |