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TOL

NYSE
Neutral · 56/100

Toll Brothers Inc

Consumer Staples
Consumer products

$154.93

1.4%

Updated Today 12:11 PM ET

Report Card

TOL at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Neutral · 56/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 31.5% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$14.69B

P/E

11.32x

Forward P/E (est.)

11.55x

ROE

15.5%

Revenue Growth

3.6%

EPS Growth

-2.0%

Profit Margin

11.7%

FCF Yield

9.4%

Debt / Equity

0.34x

ROIC

16.0%

Interest Coverage

Current Ratio

Dividend Yield

0.7%

Implied Growth (rev. DCF)

1.9%

Rating Score

56/100

Business Overview
Research

Toll Brothers Inc (TOL) is a large-cap company in the Consumer products industry, part of the Consumer Staples sector of the S&P 500, with a market value around $14.69B.

In its latest reported year it generated about $10.97B in revenue and $1.35B in net profit.

Our model rates TOL Neutral (56/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what TOL's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. TOL trades near $154.93, above its 50-day average ($143.46) and 200-day average ($141.56). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 59 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. TOL's is $5.87 (~3.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month TOL found buyers near $136.77 (support) and sellers near $166.23 (resistance); its 52-week range is $113.52–$168.36. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.2× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

5.7%

1/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $5.82B in 2017 to $10.97B in 2025, a 8.3% compound annual growth rate. The most recent year was roughly flat (3.6%) year over year. Slower, mature growth is common for established businesses.

Profitability
Research
4/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

24.4%

Operating Margin

15.7%

Net Margin

12.3%

ROE

15.5%

Toll Brothers Inc keeps about 11.7% of each sales dollar as net profit, with a 24.4% gross margin and 15.7% operating margin. Return on equity is 15.5% and return on invested capital about 16.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
2/2 checks passedDebt under 1× equityDebt under 2× equity

Total Debt

Net Debt

Net Debt / EBITDA

Debt / Equity

0.34x

Leverage: debt-to-equity is 0.3x. That is a conservative balance sheet — a cushion in downturns.

Cash Flow Analysis
Research
3/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$1.11B

Free Cash Flow

$1.03B

FCF Margin

9.4%

In the latest year Toll Brothers Inc produced about $1.11B of operating cash flow and $1.03B of free cash flow after capital spending. That is a free-cash-flow yield of about 9.4% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research
3/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

11.32x

P/S

1.33x

P/B

1.55x

EV / EBITDA

7.53x

TOL trades at 11.3x trailing earnings (about 11.6x on estimated forward earnings), 1.3x sales, and 1.5x book value. Reverse-engineering today's price implies the market expects roughly 1.9% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$184.49

Current price

$154.93

+19% · Below fair-value estimate

Starting FCF (latest 10-K)

$1.03B

Growth, years 1–5

3.6%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$7.80B
PV of terminal value$9.44B
Estimated equity value$17.24B
Shares outstanding93M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
11.3xCheap
Forward P/E
11.6xCheap
P/S ratio
1.3xCheap
Revenue growth
3.6%Weak
EPS growth
-2.0%Weak
Gross margin
24.4%Weak
Net margin
11.7%Strong
ROE
15.5%Average

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $154.93 today · expected CAGR -5%4%

Metric20262027202820292030
Revenue$11.41B$11.86B$12.34B$12.83B$13.34B
Net income$1.37B$1.42B$1.48B$1.54B$1.60B
EPS$14.64$15.23$15.84$16.47$17.13
Share price (low)$102.50$106.60$110.86$115.30$119.91
Share price (high)$161.07$167.51$174.21$181.18$188.43
CAGR (low–high)-34% / 4%-17% / 4%-11% / 4%-7% / 4%-5% / 4%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for TOL:

  • Strong return on equity (15.5%) shows capital is put to work well.
  • Healthy free-cash-flow yield (~9.4%) funds buybacks and dividends.
  • A conservative balance sheet (debt/equity 0.3x) lowers risk.
Bear Case

The case against TOL:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Toll Brothers Inc is a large-cap consumer staples business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 11.3x earnings, which our model scores Neutral (56/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

TOL — frequently asked questions

Is TOL a good stock to buy?

We don't give buy or sell advice. Our model rates Toll Brothers Inc Neutral (56/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is TOL's rating on The Stocks School?

Toll Brothers Inc currently scores 56/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does TOL's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Toll Brothers Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for TOL calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this TOL analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell TOL. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.