Toll Brothers, Inc.
- Open
- 163.50
- Day high
- 163.84
- Day low
- 161.88
- Prev close
- 164.75
- Volume
- 43K
- Mkt cap
- $15.5B
- P/E (TTM)
- 12.3
- EPS (TTM)
- $13.32
- P/B
- 1.8
- P/S
- 1.4
- Yield
- 0.16%
- Per share
- $0.26
- ▼Insiders net selling -$13.5M over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions mixed (13F)
Toll Brothers, Inc. (TOL) is a Consumer Cyclical company listed on NYSE. The stock is up 40% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4). Drillr has 1 published research article covering TOL.
Toll Brothers, Inc. (TOL) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
TOL earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 20, 2026 | $2.58 | $2.72 | +5.4% | $2.5B | +4.8% |
| Feb 17, 2026 | $2.05 | $2.19 | +6.8% | $2.1B | -11.6% |
| Dec 8, 2025 | $4.88 | $4.58 | -6.1% | $3.4B | +3.7% |
| Aug 19, 2025 | $3.60 | $3.73 | +3.6% | $2.9B | +3.1% |
| May 20, 2025 | $2.81 | $3.50 | +24.6% | $2.7B | +10.4% |
| Feb 18, 2025 | $1.99 | $1.75 | -12.1% | $1.9B | -30.1% |
| Dec 9, 2024 | $4.34 | $4.63 | +6.7% | $3.3B | +5.2% |
| Aug 20, 2024 | $3.31 | $3.60 | +8.8% | $2.7B | +0.7% |
| May 21, 2024 | $4.16 | $3.38 | -18.8% | $2.8B | +10.0% |
| Feb 20, 2024 | $1.78 | $2.25 | +26.4% | $1.9B | +4.8% |
| Dec 5, 2023 | $3.72 | $4.11 | +10.5% | $3.0B | +8.9% |
| Aug 22, 2023 | $2.84 | $3.73 | +31.3% | $2.7B | -3.3% |
TOL insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 22, 2026 | Parahus Robertofficer: President & COO | Sell | 7,500 | $149.66 |
| Jun 18, 2026 | Yearley Douglas C. Jr.director, officer: Executive Chairman | Option | 77,957 | $31.61 |
| Jun 18, 2026 | Yearley Douglas C. Jr.director, officer: Executive Chairman | Sell | 77,957 | $156.58 |
| Apr 16, 2026 | East Stephen F.director | Sell | 1,000 | $139.70 |
| Mar 4, 2026 | McLean John Adirector | Sell | 2,313 | $153.43 |
| Mar 4, 2026 | McLean John Adirector | Option | 2,313 | $31.61 |
| Mar 2, 2026 | Yearley Douglas C. Jr.director, officer: Chief Executive Officer | Option | 27,014 | $31.61 |
| Mar 2, 2026 | Yearley Douglas C. Jr.director, officer: Chief Executive Officer | Sell | 27,014 | $159.15 |
| Feb 26, 2026 | Yearley Douglas C. Jr.director, officer: Chief Executive Officer | Sell | 43,013 | $160.39 |
| Feb 26, 2026 | Yearley Douglas C. Jr.director, officer: Chief Executive Officer | Option | 45,116 | $31.61 |
| Feb 26, 2026 | Yearley Douglas C. Jr.director, officer: Chief Executive Officer | Sell | 2,103 | $161.04 |
| Feb 2, 2026 | Ziegler Gregg L.officer: Chief Financial Officer | Option | 4,897 | — |
| Feb 2, 2026 | Ziegler Gregg L.officer: Chief Financial Officer | Tax | 2,015 | $144.49 |
| Jan 20, 2026 | Reinsdorf Judith Adirector | Option | 1,295 | — |
| Jan 20, 2026 | McLean John Adirector | Option | 1,628 | — |
Source: TOL SEC Form 4 filings, latest Jun 22, 2026. For informational purposes only — not investment advice.
See the full TOL insider & 13F page →Toll Brothers, Inc. company profile
Overview
Toll Brothers, Inc. (NYSE:TOL) is one of America's leading luxury homebuilders, founded in 1967 by brothers Robert and Bruce Toll in Pennsylvania. The company has grown from a small regional builder into a national luxury homebuilding enterprise, publicly traded since 1986. Toll Brothers specializes in designing, building, and selling high-end detached and attached homes in affluent communities across the United States, serving primarily move-up buyers, empty nesters, active adults, and second-home purchasers. The company is headquartered in Fort Washington, Pennsylvania, and operates through two main segments: Traditional Home Building and City Living.
Business
Toll Brothers operates in the residential construction industry, specifically focusing on the luxury segment of the new home market. The homebuilding industry involves acquiring land, designing communities, constructing homes, and selling them to end consumers. Unlike production builders who focus on volume and standardization, Toll Brothers positions itself as a luxury builder targeting affluent buyers. The company's core business revolves around two main segments. Traditional Home Building represents the vast majority of revenue, encompassing the construction and sale of luxury detached and attached homes in master-planned communities. These homes typically feature premium finishes, larger floor plans, and extensive customization options. City Living focuses on urban condominium development, primarily in major metropolitan areas like New York City, where the company develops high-rise luxury condominiums. Beyond homebuilding, Toll Brothers operates several complementary businesses that support its core operations and provide additional revenue streams. The company owns and operates golf courses and country clubs within its communities, develops and sells raw land to other builders, and operates rental apartment communities. Additionally, Toll Brothers has vertically integrated various services including architectural and engineering design, mortgage and title services, insurance, landscaping, lumber distribution, and house component assembly operations. The company serves three primary market segments: luxury homes (representing approximately 37% of units and 53% of revenue), affordable luxury homes (44% of units and 31% of revenue), and active adult communities designed for buyers aged 55 and older (19% of units and 16% of revenue). This diversification allows Toll Brothers to capture different buyer demographics while maintaining its premium brand positioning.
Revenue model
Toll Brothers generates revenue primarily through the sale of completed homes to individual buyers. The company's business model involves purchasing or optioning land, developing communities with infrastructure and amenities, constructing homes either on a spec basis or to-order, and selling these homes at significant markups over construction costs. The average home price is approximately $950,000-$970,000, positioning the company firmly in the luxury market segment. The company employs two main construction approaches. Spec homes are built without a specific buyer and represent about 50-55% of sales, allowing for faster delivery times and appealing to buyers who want immediate occupancy. To-order homes are built after a contract is signed, offering extensive customization options through Toll Brothers' design studios where buyers can select premium finishes, fixtures, and home automation systems. Revenue timing follows the homebuilding cycle, with cash collected upon home delivery and closing. The company typically maintains a backlog of sold but undelivered homes, providing revenue visibility for future quarters. Additional revenue streams include mortgage origination fees through their captive mortgage company, land sales to other developers, and rental income from apartment communities and golf course operations. Several factors significantly impact Toll Brothers' profitability. Interest rate fluctuations directly affect buyer demand and affordability, as most purchasers require financing despite 26-28% paying cash. Land costs represent a major expense, with the company experiencing low-to-mid single-digit land cost inflation. Construction labor and material costs can pressure margins, though the company's luxury positioning provides some pricing power. Local economic conditions and employment levels in target markets influence demand, while inventory management of spec homes affects both sales pace and margin realization. The company's affluent customer base provides some insulation from economic downturns compared to entry-level builders, but luxury home sales remain cyclical and sensitive to broader economic confidence.
Competitive moat
Toll Brothers possesses a moderate but meaningful competitive moat built primarily around its established luxury brand positioning and operational scale advantages. The company has cultivated a premium brand reputation over five decades, which commands pricing power and customer loyalty in the luxury segment. This brand equity is reinforced by consistently high-quality construction, extensive customization options, and amenities like golf courses and country clubs that create lifestyle-oriented communities. The company's scale provides several operational advantages. Toll Brothers' size enables efficient land acquisition, often securing prime locations in desirable markets through relationships built over decades. Their vertical integration of services including mortgage, title, insurance, and construction trades provides cost control and quality assurance while generating additional profit margins. The company's geographic diversification across multiple high-growth, affluent markets reduces dependence on any single regional economy. However, the moat faces several vulnerabilities. The homebuilding industry has relatively low barriers to entry for well-capitalized competitors, and luxury positioning alone doesn't prevent new entrants from targeting the same affluent customer base. Local and regional builders often compete effectively by offering similar customization and quality while maintaining lower overhead structures. Established national builders like Lennar, D.R. Horton, and PulteGroup could potentially move upmarket, leveraging their own scale advantages. The company's moat is also challenged by the cyclical nature of housing demand and sensitivity to interest rates and economic conditions. Unlike software or pharmaceutical companies with recurring revenue streams, each home sale is a discrete transaction requiring continuous customer acquisition. Additionally, the luxury focus, while providing margin advantages during favorable periods, can create greater volatility during economic downturns when discretionary spending on expensive homes typically declines first. Overall, Toll Brothers maintains a defensible competitive position within the luxury homebuilding niche, but this moat is not insurmountable and requires continuous investment in brand, land acquisition, and operational excellence to maintain.
Risks & safety
Toll Brothers demonstrates a solid financial position with adequate margin of safety, though typical of homebuilders, the company carries significant inventory and operates with moderate leverage. • Liquidity and Solvency: Strong current ratio of 4.24x and cash position of $575 million provides substantial liquidity buffer. Debt-to-equity ratio of 0.37x represents moderate leverage typical for homebuilders. Free cash flow turned negative at -$438 million in Q1 2025 due to inventory investment, but the company generated positive $937 million free cash flow for full year 2024. • Valuation Metrics: Trading at P/E ratio of 19.3x and EV/EBITDA of 16.8x based on recent quarters, representing reasonable but not bargain valuations. Price-to-book ratio of 1.76x appears reasonable given strong ROE of 20.5% in fiscal 2024. Graham number of $55.37 suggests potential overvaluation at current $111.64 price. • Other Considerations: Substantial inventory of $11.7 billion represents both asset base and risk if housing market deteriorates. Controlled lot position of approximately 56,000 lots provides future growth runway but requires ongoing capital investment. Strong return on beginning equity of 23.1% in fiscal 2024 demonstrates efficient capital deployment during favorable market conditions.
Recent development
Over the past few years, Toll Brothers has executed several strategic initiatives to diversify its market reach and improve operational efficiency. The company has significantly expanded its geographic footprint and price point range, moving beyond pure luxury into affordable luxury segments to capture a broader customer base. This strategic shift has resulted in affordable luxury homes now representing approximately 44% of unit sales, helping to reduce average selling prices while maintaining attractive margins. The company has dramatically increased its spec home strategy, with spec homes now representing 50-55% of sales compared to historically lower levels. This shift responds to market demand for faster delivery times and capitalizes on the tight resale home inventory that has made new homes more attractive to buyers. The spec strategy also allows Toll Brothers to better manage construction scheduling and labor utilization. Community count expansion has been a key growth driver, with the company targeting 8-10% annual growth in active communities. This expansion includes entering new markets and submarkets while deepening penetration in existing successful markets. The company has been particularly successful in markets like South Carolina, Atlanta, Boise, Las Vegas, and California. Toll Brothers has also enhanced its land acquisition strategy, maintaining approximately 56% of lots under option rather than owned outright. This capital-efficient approach reduces risk while preserving growth opportunities. The company has been selective in land acquisition, targeting deals with gross margins above 25% and internal rates of return exceeding 25%. Recent quarters have shown strong performance in the City Living segment, particularly in New York, as urban markets recover from pandemic-related weakness. The company has also expanded its rental apartment development business through strategic partnerships, including a collaboration with Equity Residential to develop new rental communities.
TOL company profile · for informational purposes only — not investment advice.
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