A Business at a Glance
0 of 5 daily views used (5 remaining). Sign up free for 10 daily views, or try AAPL for a full preview.
Toll Brothers, Inc.
TOL
$15.0B
Mkt Cap
$149.87
+2.27%
Toll Brothers, Inc. (TOL) has a current P/E ratio of 10.8, compared to its historical median P/E of 9.6. The stock is currently considered Fair based on its historical valuation range.
Toll Brothers, Inc. (TOL) has a 5-year average return on invested capital (ROIC) of 17.2%. This indicates strong capital allocation and a potential competitive advantage.
Toll Brothers, Inc. (TOL) has a market capitalization of $15.4B. It is classified as a large-cap stock.
Yes, Toll Brothers, Inc. (TOL) pays a dividend with a trailing twelve-month yield of 0.63%. The company also returns capital through share buybacks, with a buyback yield of 4.39%.
Based on historical P/E analysis, Toll Brothers, Inc. (TOL) appears fair. The current P/E of 10.8 is 12% above its historical median of 9.6. The estimated fair value CAGR (P/E method) is 26.6%.
Toll Brothers, Inc. (TOL) operates in the Operative Builders industry, within the Industrials sector.
Toll Brothers, Inc. (TOL) reported annual revenue of $11.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
Toll Brothers designs, builds, markets, sells, and arranges financing for luxury residential communities across the United States, operating in 24 states and the District of Columbia as of October 31, 2025. The company serves affluent first-time, move-up, empty-nester, active-adult, and second-home buyers through single-family detached homes, attached homes, master-planned communities, and urban high-rise condominiums developed through joint ventures under the Toll Brothers City Living brand. The business model combines build-to-order and quick move-in (spec) homes, with spec homes representing approximately 50% of deliveries and 41% of home sales revenues in recent periods, enabling earlier cash collection and reduced inventory risk. Toll Brothers operates vertically integrated subsidiaries in architecture, engineering, mortgage, title, land development, insurance, smart home technology, landscaping, and in certain regions, lumber distribution and manufacturing, creating operational efficiencies and capturing value across the home building value chain. The company's competitive moat derives from its luxury positioning, affluent customer base with strong financial profiles (median buyer age approximately 60, low loan-to-value ratios around 69%), low contract cancellation rates (2.8–3.2% of backlog), and extensive land position of approximately 76,100 home sites, 57% optioned, supporting disciplined growth and community expansion. Geographic diversification spans major metropolitan areas from Boston to San Francisco, with particular strength in the Northeast, Mid-Atlantic, Southeast, and Pacific regions, and the company is exiting its multifamily apartment and student housing business to focus on core residential for-sale operations.
【Luxury demand resilience continuing】 Management expects to maintain strong execution in fiscal 2026 driven by the affluent customer base, which remains less impacted by broader housing market affordability pressures affecting first-time buyers. The company is raising full-year guidance across key home building metrics based on first-half performance, reflecting confidence in backlog visibility and the Buffington Homes acquisition contribution. Community count is expected to grow 8–10% in fiscal 2026 and beyond, supported by sufficient owned or controlled land, with the company targeting 480–490 selling communities by year-end. Gross margin is projected to benefit from favorable product mix, particularly higher-margin luxury move-up and Pacific region deliveries, as well as continued operating efficiencies and cost control, though management notes seasonality in spec strategy timing will create quarterly variation. Capital allocation priorities include returning approximately $650 million to shareholders through repurchases while maintaining a healthy balance sheet and investing in business growth, with the company generating strong operating cash flow and maintaining over $3 billion in liquidity.
| Metric | Target | Period |
|---|---|---|
| Home deliveries | 10,300–10,700 homes | FY2026 |
| Average delivered price | $970,000–$990,000 | FY2026 |
| Adjusted gross margin | 26.0% | FY2026 |
| SG&A as percentage of revenue | 10.25% | FY2026 |
| Community count | 480–490 communities | FY2026 |
| Share repurchases | $650 million | FY2026 |
| Full-year adjusted gross margin | 26.1% | FY2026 |
| Other income from unconsolidated entities and land sales | $120 million | FY2026 |
Home deliveries (FY2026): “For full fiscal year 2026, we are maintaining our projected deliveries of between 10,300 and 10,700 homes”
Average delivered price (FY2026): “For full fiscal year 2026, we are maintaining our projected deliveries of between 10,300 and 10,700 homes, with an average price between $970,000 and $990,000.”
Adjusted gross margin (FY2026): “we continue to project 26.0% for the full year”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 11.3B | 11.0B | 10.8B | 10.0B | 10.3B | 8.8B |
| Net Income | 1.4B | 1.3B | 1.6B | 1.4B | 1.3B | 834M |
| EPS | $13.15 | $13.49 | $15.01 | $12.36 | $10.90 | $6.63 |
| Free Cash Flow | 1.5B | 1.0B | 937M | 1.2B | 915M | 1.2B |
| ROIC | 12.7% | 16.0% | 19.8% | 18.5% | 17.5% | 14.2% |
| Gross Margin | - | 25.1% | 27.9% | 26.4% | 24.2% | 22.1% |
| Debt/Equity | 0.35 | 0.32 | 0.35 | 0.41 | 0.53 | 0.65 |
| Dividends/Share | $0.95 | $0.98 | $0.90 | $0.83 | $0.77 | $0.62 |
| Operating Income | 1.7B | 1.7B | 2.0B | 1.7B | 1.5B | 1.0B |
| Operating Margin | 15.3% | 15.7% | 18.8% | 17.3% | 14.7% | 11.6% |
| ROE | 16.4% | 16.9% | 20.5% | 20.2% | 21.4% | 15.7% |
| Shares Outstanding | 103M | 100M | 105M | 111M | 118M | 126M |
Toll Brothers, Inc. passes 6 of 9 quality checks, suggesting mixed fundamentals.
Toll Brothers, Inc. trades at 10.8x trailing earnings, compared to its 15-year median P/E of 9.6x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 9.8x vs a median of 7.7x. The company's 5-year average ROIC is 17.2% with a gross margin of 25.1%. Total shareholder yield (dividends + buybacks) is 5.0%. At current prices, the estimated annualized return to fair value is +19.5%.
Toll Brothers, Inc. (TOL) has a net profit margin of 12.3%. This is a healthy margin.
Toll Brothers, Inc. (TOL) generated $1.0 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Toll Brothers, Inc. (TOL) has a debt-to-equity ratio of 0.32. This indicates a conservatively financed balance sheet.
Toll Brothers, Inc. (TOL) reported earnings per share (EPS) of $13.49 in its most recent fiscal year.
Toll Brothers, Inc. (TOL) has a return on equity (ROE) of 16.9%. This indicates the company generates strong returns for shareholders.
Toll Brothers, Inc. (TOL) has a 5-year average gross margin of 25.1%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 15 years of financial data for Toll Brothers, Inc. (TOL), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Toll Brothers, Inc. (TOL) has a book value per share of $82.86, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects to maintain strong execution in fiscal 2026 driven by the affluent customer base, which remains less impacted by broader housing market affordability pressures affecting first-time buyers. The company is raising full-year guidance across key home building metrics based on first-half performance, reflecting confidence in backlog visibility and the Buffington Homes acquisition contribution. Community count is expected to grow 8–10% in fiscal 2026 and beyond, supported by sufficient owned or controlled land, with the company targeting 480–490 selling communities by year-end. Gross margin is projected to benefit from favorable product mix, particularly higher-margin luxury move-up and Pacific region deliveries, as well as continued operating efficiencies and cost control, though management notes seasonality in spec strategy timing will create quarterly variation. Capital allocation priorities include returning approximately $650 million to shareholders through repurchases while maintaining a healthy balance sheet and investing in business growth, with the company generating strong operating cash flow and maintaining over $3 billion in liquidity.
Based on recent SEC filings and earnings calls, Toll Brothers, Inc. (TOL) has provided the following forward guidance: Home deliveries: 10,300–10,700 homes (FY2026); Average delivered price: $970,000–$990,000 (FY2026); Adjusted gross margin: 26.0% (FY2026); SG&A as percentage of revenue: 10.25% (FY2026); Community count: 480–490 communities (FY2026), plus 3 additional metrics.
SG&A as percentage of revenue (FY2026): “For the full year, we continue to expect it to be 10.25%.”
Community count (FY2026): “we expect to grow community count by 8%-10% by the end of fiscal 2026, and are targeting 480-490 communities.”
Share repurchases (FY2026): “This assumes we repurchase a targeted $650 million common stock for the full year”
Full-year adjusted gross margin (FY2026): “We're also increasing our full-year adjusted gross margin guidance by 10 basis points to 26.1%”
Other income from unconsolidated entities and land sales (FY2026): “We now project $120 million for the full-year, of which we have already realized $81 million.”