Toll Brothers Inc TOL

Morningstar Rating
$155.35 +4.73 (3.14%)
View Full Chart

Company Report

Toll Brothers Earnings: Firm Raises Full-Year Guidance After Strong Q3 Performance

We’ve raised our fair value estimate for Toll Brothers by 12% to $120 per share following the firm’s fiscal third-quarter earnings release. Strong year-to-date financial performance caused upward revisions to our fiscal 2024-25 revenue and profit-margin expectations. However, we have also become more confident in management’s ability to operate with leaner selling, general, and administrative expense spending and a more capital efficient land acquisition and production strategy.

Price vs Fair Value

TOL is trading at a 357% premium.
Price
$155.35
Fair Value
$689.00
Uncertainty
High
1-Star Price
$852.00
5-Star Price
$53.00
Economic Moat
Xlvg
Capital Allocation
Kycqttgx

Bulls Say, Bears Say

Bulls

The housing supply/demand imbalance will take years to address and should support pricing power for homebuilders.

Bears

High home prices, rising interest rates, and economic uncertainty could cause a prolonged slowdown in US housing demand.

News

Trading Information

Previous Close Price
$150.62
Day Range
$151.30156.00
52-Week Range
$68.08156.00
Bid/Ask
$153.67 / $155.92
Market Cap
$15.69 Bil
Volume/Avg
1.5 Mil / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
11.34
Price/Sales
1.57
Dividend Yield (Trailing)
0.57%
Dividend Yield (Forward)
0.59%
Total Yield
5.32%

Company Profile

Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in over 60 markets across 24 states and caters to move-up, active-adult, and second-home buyers. Traditional homebuilding operations represent most of company’s revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the US It has its headquarters in Horsham, Pennsylvania.
Sector
Consumer Cyclical
Industry
Residential Construction
Stock Style Box
Mid Core
Total Number of Employees
4,800

Competitors

Valuation

Metric
TOL
LEN
INVH
Price/Earnings (Normalized)
11.3412.4364.65
Price/Book Value
2.111.872.14
Price/Sales
1.571.418.45
Price/Cash Flow
9.4710.6420.02
Price/Earnings
TOL
LEN
INVH

Financial Strength

Metric
TOL
LEN
INVH
Quick Ratio
0.373.162.31
Current Ratio
4.1517.673.45
Interest Coverage
354.192.34
Quick Ratio
TOL
LEN
INVH

Profitability

Metric
TOL
LEN
INVH
Return on Assets (Normalized)
12.62%11.59%2.75%
Return on Equity (Normalized)
22.93%16.95%5.18%
Return on Invested Capital (Normalized)
15.84%14.43%4.35%
Return on Assets
TOL
LEN
INVH

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