Toll Brothers, Inc.TOL
NYSE•Consumer Cyclical•Residential Construction
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.
Toll Brothers, Inc. (TOL) reported trailing twelve months revenue of $11.05B as of April 2026, a 3.6% increase year-over-year. Quarterly revenue reached $2.53B, reflecting continued top-line momentum.
Toll Brothers, Inc. generated $1.29B in TTM net income, with quarterly EBITDA of $363.90M. The operating margin contracted from 16.4% to 13.7%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (13.7%) and net margin (10.3%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 12.9% a year ago, reflecting increased costs or interest expense.
TOL trades at a P/E of 10.3x (below the broader market average) and a P/S of 1.2x. The price-to-book ratio of 1.6x reflects a moderate premium to book value.
The company generated $109.98M in free cash flow over the trailing twelve months, a 68.3% decrease year-over-year, indicating cash generation ability. The balance sheet shows $14.53B in total assets with $1.74B in long-term debt against $8.48B in stockholders equity for a debt-to-equity ratio of 0.2, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~15.2% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 17.9% suggests a durable competitive advantage and efficient capital allocation.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue shows resilience with 4 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 12.1% — watch for continued compression, which may signal competitive or cost pressure.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.2 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Shares decreased 7.6% — net buybacks are reducing shares outstanding and boosting per-share value.