Is Toll Brothers Stock a Good Investment?
Toll Brothers Investment Advice | TOL |
- Examine Toll Brothers' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Toll Brothers' leadership team and their track record. Good management can help Toll Brothers navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Household Durables space and any emerging trends that could impact Toll Brothers' business and its evolving consumer preferences.
- Compare Toll Brothers' performance and market position to its competitors. Analyze how Toll Brothers is positioned in terms of product offerings, innovation, and market share.
- Check if Toll Brothers pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Toll Brothers' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Toll Brothers stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Toll Brothers is a good investment.
Sell | Buy |
Strong Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Toll Brothers Stock
Researching Toll Brothers' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 90.0% of the company shares are owned by institutional investors. The book value of Toll Brothers was at this time reported as 73.46. The company has Price/Earnings To Growth (PEG) ratio of 1.09. Toll Brothers recorded earning per share (EPS) of 14.48. The entity last dividend was issued on the 11th of October 2024. The firm had 2:1 split on the 11th of July 2005.
To determine if Toll Brothers is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Toll Brothers' research are outlined below:
| Toll Brothers is unlikely to experience financial distress in the next 2 years | |
| Over 90.0% of the company shares are owned by institutional investors | |
| On 25th of October 2024 Toll Brothers paid $ 0.23 per share dividend to its current shareholders | |
| Latest headline from gurufocus.com: Disposition of 5000 shares by Martin Connor of Toll Brothers at 155.4422 subject to Rule 16b-3 |
Toll Brothers uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Toll Brothers. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Toll Brothers' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 28th of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 3rd of December 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of October 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Toll Brothers' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Toll Brothers' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1996-08-22 | 1996-07-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2013-05-22 | 2013-04-30 | 0.07 | 0.09 | 0.02 | 28 | ||
2000-05-24 | 2000-04-30 | 0.17 | 0.19 | 0.02 | 11 | ||
1999-05-26 | 1999-04-30 | 0.13 | 0.15 | 0.02 | 15 | ||
1997-02-26 | 1997-01-31 | 0.08 | 0.1 | 0.02 | 25 | ||
2014-02-25 | 2014-01-31 | 0.18 | 0.15 | -0.03 | 16 | ||
2007-05-24 | 2007-04-30 | 0.25 | 0.22 | -0.03 | 12 | ||
2012-02-22 | 2012-01-31 | 0.02 | -0.02 | -0.04 | 200 |
Know Toll Brothers' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Toll Brothers is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Toll Brothers backward and forwards among themselves. Toll Brothers' institutional investor refers to the entity that pools money to purchase Toll Brothers' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 1.9 M | Jpmorgan Chase & Co | 2024-06-30 | 1.8 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.5 M | Allianz Asset Management Ag | 2024-06-30 | 1.3 M | Goldman Sachs Group Inc | 2024-06-30 | 1.2 M | Aqr Capital Management Llc | 2024-06-30 | 1.2 M | Norges Bank | 2024-06-30 | 1.2 M | Lsv Asset Management | 2024-09-30 | 1.2 M | Bank Of America Corp | 2024-06-30 | 1 M | Blackrock Inc | 2024-06-30 | 12.7 M | Vanguard Group Inc | 2024-09-30 | 10.5 M |
Toll Brothers' market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 15.91 B.Market Cap |
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Toll Brothers' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.11 | 0.13 | |
| Return On Capital Employed | 0.20 | 0.13 | |
| Return On Assets | 0.11 | 0.13 | |
| Return On Equity | 0.23 | 0.17 |
Determining Toll Brothers' profitability involves analyzing its financial statements and using various financial metrics to determine if Toll Brothers is a good buy. For example, gross profit margin measures Toll Brothers' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Toll Brothers' profitability and make more informed investment decisions.
Evaluate Toll Brothers' management efficiency
Toll Brothers has Return on Asset of 0.0996 % which means that on every $100 spent on assets, it made $0.0996 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.218 %, implying that it generated $0.218 on every 100 dollars invested. Toll Brothers' management efficiency ratios could be used to measure how well Toll Brothers manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Toll Brothers' Return On Tangible Assets are quite stable compared to the past year. Return On Assets is expected to rise to 0.13 this year, although the value of Return On Capital Employed will most likely fall to 0.13. At this time, Toll Brothers' Debt To Assets are quite stable compared to the past year. Fixed Asset Turnover is expected to rise to 45.63 this year, although the value of Other Current Assets will most likely fall to about 219 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 55.73 | 58.52 | |
| Tangible Book Value Per Share | 55.73 | 58.52 | |
| Enterprise Value Over EBITDA | 6.04 | 6.34 | |
| Price Book Value Ratio | 1.32 | 1.25 | |
| Enterprise Value Multiple | 6.04 | 6.34 | |
| Price Fair Value | 1.32 | 1.25 | |
| Enterprise Value | 6.9 B | 7.2 B |
The management team at Toll Brothers has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Dividend Yield 0.0058 | Forward Dividend Yield 0.0058 | Forward Dividend Rate 0.92 | Beta 1.671 |
Basic technical analysis of Toll Stock
As of the 25th of November, Toll Brothers has the Risk Adjusted Performance of 0.0828, coefficient of variation of 996.7, and Semi Deviation of 1.51. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Toll Brothers, as well as the relationship between them. Please validate Toll Brothers standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if Toll Brothers is priced more or less accurately, providing market reflects its prevalent price of 167.8 per share. Given that Toll Brothers has jensen alpha of 0.0739, we advise you to double-check Toll Brothers's current market performance to make sure the company can sustain itself at a future point.Toll Brothers' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Toll Brothers insiders, such as employees or executives, is commonly permitted as long as it does not rely on Toll Brothers' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Toll Brothers insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
John McLean over a month ago Disposition of 1000 shares by John McLean of Toll Brothers at 151.1 subject to Rule 16b-3 | ||
Christine Garvey over six months ago Disposition of 170 shares by Christine Garvey of Toll Brothers at 121.985 subject to Rule 16b-3 | ||
Douglas Yearley over six months ago Exercise or conversion by Douglas Yearley of 49354 shares of Toll Brothers subject to Rule 16b-3 | ||
Douglas Yearley over a year ago Exercise or conversion by Douglas Yearley of 101271 shares of Toll Brothers subject to Rule 16b-3 | ||
Douglas Yearley over a year ago Exercise or conversion by Douglas Yearley of 59000 shares of Toll Brothers subject to Rule 16b-3 | ||
Douglas Yearley over a year ago Payment of 34933 shares by Douglas Yearley of Toll Brothers subject to Rule 16b-3 |
Toll Brothers' Outstanding Corporate Bonds
Toll Brothers issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Toll Brothers uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Toll bonds can be classified according to their maturity, which is the date when Toll Brothers has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Toll Brothers 4875 Corp BondUS88947EAS90 | View | |
| Toll Brothers 4875 Corp BondUS88947EAR18 | View | |
| Toll Brothers Finance Corp BondUS88947EAU47 | View | |
| Toll Brothers 435 Corp BondUS88947EAT73 | View |
Understand Toll Brothers' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Toll Brothers' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0828 | |||
| Market Risk Adjusted Performance | 0.2192 | |||
| Mean Deviation | 1.35 | |||
| Semi Deviation | 1.51 | |||
| Downside Deviation | 1.76 | |||
| Coefficient Of Variation | 996.7 | |||
| Standard Deviation | 1.84 | |||
| Variance | 3.39 | |||
| Information Ratio | 0.0293 | |||
| Jensen Alpha | 0.0739 | |||
| Total Risk Alpha | (0.12) | |||
| Sortino Ratio | 0.0307 | |||
| Treynor Ratio | 0.2092 | |||
| Maximum Drawdown | 9.12 | |||
| Value At Risk | (2.91) | |||
| Potential Upside | 3.43 | |||
| Downside Variance | 3.09 | |||
| Semi Variance | 2.28 | |||
| Expected Short fall | (1.45) | |||
| Skewness | 0.2567 | |||
| Kurtosis | 0.4206 |
| Risk Adjusted Performance | 0.0828 | |||
| Market Risk Adjusted Performance | 0.2192 | |||
| Mean Deviation | 1.35 | |||
| Semi Deviation | 1.51 | |||
| Downside Deviation | 1.76 | |||
| Coefficient Of Variation | 996.7 | |||
| Standard Deviation | 1.84 | |||
| Variance | 3.39 | |||
| Information Ratio | 0.0293 | |||
| Jensen Alpha | 0.0739 | |||
| Total Risk Alpha | (0.12) | |||
| Sortino Ratio | 0.0307 | |||
| Treynor Ratio | 0.2092 | |||
| Maximum Drawdown | 9.12 | |||
| Value At Risk | (2.91) | |||
| Potential Upside | 3.43 | |||
| Downside Variance | 3.09 | |||
| Semi Variance | 2.28 | |||
| Expected Short fall | (1.45) | |||
| Skewness | 0.2567 | |||
| Kurtosis | 0.4206 |
Consider Toll Brothers' intraday indicators
Toll Brothers intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Toll Brothers stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 115661.0 | |||
| Daily Balance Of Power | 1.08617 | |||
| Rate Of Daily Change | 1.06 | |||
| Day Median Price | 164.82 | |||
| Day Typical Price | 165.81 | |||
| Price Action Indicator | 8.09 | |||
| Period Momentum Indicator | 10.21 | |||
| Relative Strength Index | 56.51 |
Toll Brothers Corporate Filings
13A | 8th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
F4 | 16th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 4th of September 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 20th of August 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Toll Stock media impact
Far too much social signal, news, headlines, and media speculation about Toll Brothers that are available to investors today. That information is available publicly through Toll media outlets and privately through word of mouth or via Toll internal channels. However, regardless of the origin, that massive amount of Toll data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Toll Brothers news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Toll Brothers relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Toll Brothers' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Toll Brothers alpha.
Toll Brothers Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Toll Brothers can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Toll Brothers Historical Investor Sentiment
Investor biases related to Toll Brothers' public news can be used to forecast risks associated with an investment in Toll. The trend in average sentiment can be used to explain how an investor holding Toll can time the market purely based on public headlines and social activities around Toll Brothers. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Toll Brothers' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Toll Brothers and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Toll Brothers news discussions. The higher the estimate score, the more favorable the investor's outlook on Toll Brothers.
Toll Brothers Corporate Directors
| Richard Braemer | Independent Director | Profile | |
| John McLean | Independent Director | Profile | |
| Christine Garvey | Independent Director | Profile | |
| Stephen Novick | Independent Director | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Toll Brothers. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. For more information on how to buy Toll Stock please use our How to buy in Toll Stock guide.You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Is Household Durables space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Toll Brothers. If investors know Toll will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Toll Brothers listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.04) | Dividend Share 0.88 | Earnings Share 14.48 | Revenue Per Share 100.231 | Quarterly Revenue Growth 0.015 |
The market value of Toll Brothers is measured differently than its book value, which is the value of Toll that is recorded on the company's balance sheet. Investors also form their own opinion of Toll Brothers' value that differs from its market value or its book value, called intrinsic value, which is Toll Brothers' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Toll Brothers' market value can be influenced by many factors that don't directly affect Toll Brothers' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Toll Brothers' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Toll Brothers is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Toll Brothers' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.