Toll Brothers, Inc. (TOL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

M.D.C. Holdings, Inc.

Skyline Champion Corp.

NVR, Inc.

Toll Brothers, Inc.

PulteGroup, Inc.

D.R. Horton, Inc.

Taylor Morrison Home Corp.

Lennar Corp.

Meritage Homes Corp.

KB Home

Tri Pointe Homes, Inc.

Why is Toll Brothers, Inc. ?

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Operating profit has grown by an annual rate 26.95%

Flat results in Jul 25

ROCE(HY) Lowest at 17.73%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.76 times
RAW MATERIAL COST(Y) Grown by 9.08% (YoY)

With ROCE of 17.71%, it has a fair valuation with a 1.34 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.83%, its profits have fallen by -13%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.83% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Toll Brothers, Inc. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Toll Brothers, Inc. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Toll Brothers, Inc.

25.71%

0.48

35.49%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.01%

EBIT Growth (5y)

20.28%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

1.84

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

1.01

Tax Ratio

24.32%

Dividend Payout Ratio

7.26%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

16.74%

ROE (avg)

18.10%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.73

EV to EBIT

9.42

EV to EBITDA

8.99

EV to Capital Employed

1.62

EV to Sales

1.43

PEG Ratio

Dividend Yield

0.69%

ROCE (Latest)

17.21%

ROE (Latest)

16.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,533.19 MM

DIVIDEND PER SHARE(HY)

Highest at USD 0

CASH AND EQV(HY)

Highest at USD 2,461.82 MM

DEBT-EQUITY RATIO (HY)

Lowest at 18.06 %

-5What is not working for the Company

ROCE(HY)

Lowest at 17.03%

RAW MATERIAL COST(Y)

Grown by 11.18% (YoY

OPERATING PROFIT(Q)

Lowest at USD 235.29 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.97 %

Here's what is working for Toll Brothers, Inc.

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 1,533.19 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 2,461.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 18.06 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Toll Brothers, Inc.

Operating Profit

Lowest at USD 235.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 10.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 11.18% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.2 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income