Toll Brothers, Inc. (TOL) AI Stock Analysis

Toll Brothers, Inc. specializes in designing, constructing, marketing, and selling luxury detached and attached homes within upscale residential communities across the United States. Its Toll Brothers City Living division develops urban condominiums, while other offerings include single-story living and primary bedroom suite designs. Communities often feature amenities such as golf courses, marinas, country clubs, and fitness centers. The company also provides interior fit-out options, land development, apartment development and rental operations, along with architectural, engineering, mortgage, title, landscaping, and house component manufacturing services.

Toll Brothers grew annual revenue from $8.79B in FY2021 to $10.97B in FY2025, representing a 5-year revenue CAGR of 9.2%. Net income increased from $833.6M in FY2021 to $1.35B in FY2025, after peaking at $1.57B in FY2024. Gross margin stood at 26.0% and operating margin was 15.7% in FY2025, down from 27.9% and 18.8% in FY2024. For the latest quarter ended July 31, 2026, quarterly revenue fell 9.7% year-over-year, while quarterly earnings declined 20.4%. Over the trailing twelve months, revenue was $10.76B with an operating margin of 14.6% and diluted EPS of $12.41.

As of July 31, 2026, Toll Brothers held $1.06B in cash and short-term investments against total debt of $2.91B, resulting in net debt of $1.85B. Shareholders' equity was $8.53B, yielding a debt-to-equity ratio of 0.34 and a current ratio of 3.90. In FY2025, operating cash flow reached $1.11B and free cash flow was $1.03B. Capital expenditures were $86.2M, while the company allocated $651.0M to share buybacks and $97.1M to dividends paid.

Toll Brothers trades at a trailing P/E of 10.8x and a forward P/E of 10.0x, below the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its enterprise value to EBITDA ratio is 9.1x, compared to the peer median of 11.1x. The stock trades at a price-to-sales ratio of 1.1x versus the peer median of 0.7x. Over the past year, TOL gained 0.3%, trailing the S&P 500 return of 16.8%, but its 5-year return of 140.4% outperformed the S&P 500 return of 83.0%.

Toll Brothers offers a forward annual dividend of $1.04 per share, resulting in a dividend yield of 0.78% with a payout ratio of 8.3%. Dividends have been paid for 10 consecutive years, achieving an annualized 5-year dividend growth rate of 17.4%. In FY2025, total dividends paid were $97.1M, and the last ex-dividend date was October 9, 2026.

Wall Street analysts assign Toll Brothers 11 Strong Buy, 4 Buy, 4 Hold, and 1 Sell ratings. The mean price target is $168.83, implying an upside of 26.3% over the last close of $133.70. For the fiscal year ending October 31, 2026, analysts estimate EPS of $12.71 on revenue of $10.84B. For the next fiscal year, 18 analysts project EPS of $13.62 on revenue of $10.94B. The company beat EPS estimates in 3 of the last 4 quarters.

This page is an AI-written research summary of Toll Brothers, Inc. (TOL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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