📊 TOL Key Takeaways
Is Toll Brothers, Inc. (TOL) a Good Investment?
Toll Brothers maintains financial stability with a fortress balance sheet (0.00x debt/equity, $1.1B cash) and positive cash generation, but faces deteriorating profitability with net income down 14.3% YoY despite flat revenue, indicating pricing pressure or cost inflation in the cyclical homebuilding sector. Weak capital returns (ROE 5.6%, ROA 3.2%) and severely constrained free cash flow margin (2.1%) raise concerns about working capital management and capital efficiency.
Toll Brothers, Inc. Key Strengths (TOL)
- Strong balance sheet with minimal debt (0.00x D/E) and $1.1B cash buffer provides financial flexibility
- Consistent operating cash flow generation ($141.7M) demonstrates core business cash production
- Operating margin of 12.1% shows reasonable operational control despite market headwinds
TOL Stock Risks: Toll Brothers, Inc. Investment Risks
- Profitability erosion: net income down 14.3% YoY while revenue growth stalled at 1.1%, signaling margin compression
- Free cash flow margin of only 2.1% vs. net margin of 10.1% indicates significant working capital drains or capital intensity issues
- Weak capital returns (ROE 5.6%, ROA 3.2%) suggest poor capital deployment efficiency in current market environment
Key Metrics to Watch
- Gross margin recovery and net income stabilization trajectory
- Free cash flow margin expansion and working capital efficiency trends
- Revenue growth acceleration and market demand indicators
Toll Brothers, Inc. (TOL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.1% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
TOL Profit Margin, ROE & Profitability Analysis
TOL vs Market Sector: How Toll Brothers, Inc. Compares
How Toll Brothers, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Toll Brothers, Inc. Stock Overvalued? TOL Valuation Analysis 2026
Based on fundamental analysis, Toll Brothers, Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Toll Brothers, Inc. Balance Sheet: TOL Debt, Cash & Liquidity
TOL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Toll Brothers, Inc.'s revenue has grown significantly by 25% over the 5-year period, indicating strong business expansion. The most recent EPS of $12.36 reflects profitable operations.
TOL Revenue Growth, EPS Growth & YoY Performance
TOL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $2.5B | $260.6M | $2.72 |
| Q1 2026 | $1.9B | $177.7M | $1.75 |
| Q3 2025 | $2.7B | $369.6M | $3.60 |
| Q2 2025 | $2.7B | $352.4M | $3.50 |
| Q1 2025 | $1.9B | $177.7M | $1.75 |
| Q3 2024 | $2.7B | $374.6M | $3.60 |
| Q2 2024 | $2.5B | $320.2M | $2.85 |
| Q1 2024 | $1.8B | $191.5M | $1.70 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Toll Brothers, Inc. Dividends, Buybacks & Capital Allocation
TOL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Toll Brothers, Inc. (CIK: 0000794170)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TOL
What is the AI rating for TOL?
Toll Brothers, Inc. (TOL) has an AI grade of B with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TOL's key strengths?
Claude: Strong balance sheet with minimal debt (0.00x D/E) and $1.1B cash buffer provides financial flexibility. Consistent operating cash flow generation ($141.7M) demonstrates core business cash production.
What are the risks of investing in TOL?
Claude: Profitability erosion: net income down 14.3% YoY while revenue growth stalled at 1.1%, signaling margin compression. Free cash flow margin of only 2.1% vs. net margin of 10.1% indicates significant working capital drains or capital intensity issues.
What is TOL's revenue and growth?
Toll Brothers, Inc. reported revenue of $4.7B.
Does TOL pay dividends?
Toll Brothers, Inc. pays dividends, with $49.4M distributed to shareholders in the trailing twelve months.
Where can I find TOL SEC filings?
Official SEC filings for Toll Brothers, Inc. (CIK: 0000794170) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TOL's EPS?
Toll Brothers, Inc. has a diluted EPS of $4.91.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is TOL's fundamental grade?
Based on our AI fundamental analysis in June 2026, Toll Brothers, Inc. has a B grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is TOL stock overvalued or undervalued?
Valuation metrics for TOL: ROE of 5.6% (sector avg: 15%), net margin of 10.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is TOL's AI grade for 2026?
Our dual AI analysis gives Toll Brothers, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TOL's free cash flow?
Toll Brothers, Inc.'s operating cash flow is $141.7M, with capital expenditures of $43.3M. FCF margin is 2.1%.
How does TOL compare to other Market stocks?
Vs Default sector averages: Net margin 10.1% (avg: 12%), ROE 5.6% (avg: 15%), current ratio N/A (avg: 1.8).