TOL

Toll Brothers, Inc.

Fundamental data last updated:June 8, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Residential Construction

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/18/2026

Business Summary

Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of 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 condominiums 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 various interior fit-out options, such as flooring, wall tile, plumbing, cabinets, fixtures, appliances, lighting, and home-automation and security technologies. Further, it owns and operates architectural, engineering, mortgage, title, insurance, smart home technology, landscaping, lumber distribution, house component assembly, and manufacturing operations. The company serves move-up, empty-nester, active-adult, and second-home buyers. It has a strategic partnership with Equity Residential to develop new rental apartment communities in the United States markets. The company was founded in 1967 and is headquartered in Fort Washington, Pennsylvania.

 


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VALUATION

P/E

10.35

Market Cap ($M USD)

$13.27B

Forward P/E

8.76

PEG

0.48

PRICE TO SALES

1.20

PRICE TO BOOK

1.57

EV / EBITDA

8.35

5-Year Average P/E

Free Cash Flow Yield

10.95%

DCF Value

$213.93

Graham Number

$164.71

Price to FCF

9.14

EV to FCF

10.20

Earnings Yield

9.66%

FCF Yield

10.95%

DIVIDEND

Yield

0.72%

Annual Payout

$1.01

Payout Ratio

7.58%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$13.54

Next Year EPS Growth Estimate

$16.00

Next Year Revenue Growth Estimate

$1.18T

Return on Equity (ROE)

15.49%

FREE CASH FLOW

Operating Margin

14.64%

Debt-to-Equity

0.35

Piotroski F-Score

7

Altman Z-Score

4.18

Return on Invested Capital (ROIC)

13.78%

Current Ratio

4.66

Quick Ratio

0.59

Net Debt to EBITDA

0.87

Interest Coverage

0.00

Gross Profit margin

24.89%

FCF PER SHARE

$15.27

REVENUE PER SHARE

$116.09

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Gainseekers Quantitative Analysis

Summary

Toll Brothers, Inc. appears to be significantly undervalued when juxtaposed with its DCF Value and Graham Number, suggesting a market oversight. The Forward P/E of 8.71 and an Earnings Yield of 10.46% indicate a robust earnings potential relative to its price, while the Altman Z-score of 4.11 underscores financial stability. Despite a consensus rating of “Hold,” the stock’s valuation metrics suggest a compelling opportunity for value investors. The market may be underestimating its growth prospects, as evidenced by the impressive EPS forecast and solid ROE.

AI Exposure / Tech Reliance

In the realm of residential construction, Toll Brothers is uniquely positioned to leverage AI and modern technology to streamline operations and enhance customer experiences. As the industry evolves, integrating smart home technologies and AI-driven design processes could provide a competitive edge. This adaptability is crucial for maintaining relevance in a rapidly changing market landscape.

The Bull Case

For the discerning GARP investor, Toll Brothers offers a tantalizing proposition. With a strong ROIC of 15.44% and a healthy FCF Yield of 11.12%, the company demonstrates exceptional capital efficiency and cash flow generation. Its Piotroski F-Score of 6 and robust operating margin of 15.29% further highlight operational strength and pricing power. These metrics paint a picture of a company that not only generates substantial cash but also reinvests it wisely, making it an attractive buy.

The Bear Case

Despite its strengths, Toll Brothers is not without its vulnerabilities. The Price/Book ratio of 1.57 and Price/Sales of 1.16 suggest that the stock may not be as cheap as it appears at first glance. Additionally, the quick ratio of 0.37 raises concerns about short-term liquidity. With a snapshot price extended above its 50-Day SMA, there is a risk of technical overextension, which could lead to a pullback.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$166.38

Institutional Ownership %

1-Year Beta

1.39

Insider Buying % (6 Mo)

Distance to 52-Week High

20.15%

Distance to 52-Week Low

27.98%

EARNINGS SURPRISE %

5.43%

50-DAY SMA

$137.88

200-DAY SMA

$140.16

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.