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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

Company profile fields for Toll Brothers (TOL)
Profile ItemTOL
NameToll Brothers Inc
Country/RegionUnited States
GICS SectorConsumer Discretionary
GICS Industry GroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
GICS Sub-IndustryHomebuilding
Market Capitalization14.20 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJuly 8, 1986
Security TypeCommon Stock

Performance

Cumulative Growth

TOL
GSPC
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Toll Brothers (TOL) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Toll Brothers (TOL) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Toll Brothers (TOL) metric values compared with Consumer Durables & Apparel industry-group medians
MetricCurrent stock: TOLIndustry group median
Total Return (1Y)41.35%20.33%

Risk

Drawdown

TOL
GSPC
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Toll Brothers (TOL) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Toll Brothers (TOL) metric values compared with Consumer Durables & Apparel industry-group medians
MetricCurrent stock: TOLIndustry group median
Volatility (1Y, Annualized)34.81%42.86%
Beta (5Y)1.351.27

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%
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Where Toll Brothers (TOL) stands on ROE within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Toll Brothers (TOL) stands on net margin within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Toll Brothers (TOL) stands on operating margin within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Toll Brothers (TOL) metric values compared with Consumer Durables & Apparel industry-group medians
MetricCurrent stock: TOLIndustry 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
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Where Toll Brothers (TOL) stands on current ratio within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

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
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Where Toll Brothers (TOL) stands on debt-to-equity ratio within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Toll Brothers (TOL) metric values compared with Consumer Durables & Apparel industry-group medians
MetricCurrent stock: TOLIndustry group median
Current Ratio (MRQ)4.602.42
Debt / Equity (MRQ)0.340.52
Net Debt / EBITDA1.011.85

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%
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Where Toll Brothers (TOL) stands on dividend yield within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Toll Brothers (TOL) stands on payout ratio within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Toll Brothers (TOL) metric values compared with Consumer Durables & Apparel industry-group medians
MetricCurrent stock: TOLIndustry 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
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Where Toll Brothers (TOL) stands on P/E ratio within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

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
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Where Toll Brothers (TOL) stands on P/S ratio within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

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
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Where Toll Brothers (TOL) stands on P/B ratio within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Toll Brothers (TOL) metric values compared with Consumer Durables & Apparel industry-group medians
MetricCurrent stock: TOLIndustry group median
P/E Ratio (TTM)11.5419.68
P/S Ratio (TTM)1.291.12
P/B Ratio (MRQ)1.682.01
Free Cash Flow Yield (TTM)4.45%4.73%