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Toll Brothers (TOL) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Consumer Cyclical•Residential Construction
B
GoodMetricSide Score: 64/100
ProfitabilityProfit25/30
GrowthGrowth9/25
Balance SheetBalance23/25
Cash QualityCash7/20
Price & Volume
Market Cap $14.95B

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. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers; and develops, operates, rents apartments and student housing communities. In addition, it provides various interior fit-out options, such as flooring, wall tile, plumbing, cabinets, fixtures, appliances, lighting, and home-automation and security technologies. Further, the company owns and operates architectural, engineering, mortgage, title, land development, insurance, smart home technology, landscaping, lumber distribution, house component assembly, and component manufacturing operations. It serves luxury first-time, move-up, empty-nester, active-adult, and second-home buyers. The company was founded in 1967 and is headquartered in Fort Washington, Pennsylvania.

Moat Signals

Competitive analysis based on 63 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~15.2% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Strong Moat

Consistently high ROE averaging 17.9% suggests a durable competitive advantage and efficient capital allocation.

Cash Generation

Moderate Moat

6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Moderate Moat

Revenue shows resilience with 4 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.

Risk Signals

Data-driven red flags and warnings across 63 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 12.1% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Leverage Risk

Healthy

D/E ratio is 0.2 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Share Dilution

Healthy

Shares decreased 7.6% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of April 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$11.05B
3.6%
Q. Revenue
$2.53B
TTM EBITDA
$1.74B
8.5%
TTM Op. Income
$1.62B
9.0%
Q. Op. Income
$346.64M
TTM Net Income
$1.29B
6.7%
Q. Net Income
$260.59M
EPS
$2.74
Shares Out.
$95.14M
4.8%
$11.05B in TTM revenue grew 3.6% YoY, reaching $2.53B last quarter. TTM EBITDA of $1.74B and TTM operating income of $1.62B shows growth is flowing through. Net income of $1.29B TTM confirms the company is converting revenue into profit. Revenue is growing modestly — monitor for acceleration or deceleration.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
23.9%
7.2%
EBITDA Margin
14.4%
Op. Margin
13.7%
16.6%
Net Margin
10.3%
20.0%
Op. margin of 13.7% is down 2.7% YoY — costs are rising relative to revenue. Net margin at 10.3% and gross margin of 23.9% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
11.6x
P/S Ratio
1.4x
P/B Ratio
1.8x
At 11.6x P/E, the stock trades below market averages — potentially undervalued. P/S of 1.4x and P/B of 1.8x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$14.53B
Cash
$1.11B
Long-Term Debt
$1.74B
Book Value
$8.48B
D/E Ratio
0.2
Debt/EBITDA
4.8
With $14.53B in assets and $1.74B in long-term debt, the D/E of 0.2and book value of $8.48B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$134.45M
Free Cash Flow
$109.98M
68.3%
FCF Margin
1.0%
FCF / Net Income
0.4
FCF of $109.98M on $134.45M in operating cash flow. The FCF / Net Income ratio of 0.1x indicates partial cash conversion — earnings quality needs attention.

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