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

Health score, price, valuation, risk signals, and key metrics at a glance.

Toll Brothers

NYSE•Consumer Cyclical•Residential Construction

$141.73-0.07(<0.01%)Market closed

Market Cap

$12.61B

P/E

10.5x

P/S

1.2x

P/B

1.5x

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.

How this company scores

GoodMetricSide Score: 60/100

Strongest: Cash & Earnings Quality (21/25); weakest: Growth (10/25).

Profitability12/25

Growth10/25

Balance Sheet & Red Flags17/25

Cash & Earnings Quality21/25

Strengths

Rising free cash flowLow leverageNo share dilution

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 10.5x5y range 3.8x – 28.7x

Currently above its 20-quarter median.

P/S · 1.2x5y range 0.5x – 2.1x

Currently near its 20-quarter median.

P/B · 1.5x5y range 0.8x – 2.0x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 14.6% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $12.61B

Metrics at a Glance

as of July 2026

Revenue & Profit

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

TTM Revenue: $10.76B
Q. Revenue: $2.66B
TTM EBITDA: $1.61B
TTM Op. Income: $1.49B
Q. Op. Income: $359.15M
TTM Net Income: $1.20B
Q. Net Income: $280.14M
EPS: $2.98
Shares Out.: $93.90M

$10.76B in TTM revenue declined 1.1% YoY, reaching $2.66B last quarter. TTM EBITDA of $1.61B and TTM operating income of $1.49B show growth is flowing through to the bottom line. TTM net income of $1.20B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has fallen for 2 consecutive quarters — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 23.5%
EBITDA Margin: 14.3%
Op. Margin: 13.5%
Net Margin: 10.5%

Op. margin of 13.5% is down 3.1% YoY — costs are rising relative to revenue. Net margin at 10.5% and gross margin of 23.5% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 18% — a weakening trend.

Price Ratios

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

P/E Ratio: 10.5x
P/S Ratio: 1.2x
P/B Ratio: 1.5x

At 10.5x P/E, the stock trades below typical market levels. P/S of 1.2x and P/B of 1.5x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 5 consecutive quarters — a weakening trend.

Assets & Liabilities

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

Total Assets: $14.69B
Cash: $1.06B
Long-Term Debt: $1.74B
Book Value: $8.53B
D/E Ratio: 0.2
Debt/EBITDA: 4.6

With $14.69B in assets and $1.74B in long-term debt, D/E is 0.2and book value is $8.53B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 4 consecutive quarters — an improving trend.

Cash Flow

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

Op. Cash Flow: $250.34M
TTM Free Cash Flow: $1.09B
FCF Margin: 10.1%
FCF / Net Income: 0.9

TTM FCF of $1.09B on $250.34M in operating cash flow. The FCF / Net Income ratio of 0.9x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.