Toll Brothers Story

TOL -- USA Stock

USD 53.57 0.58 1.09%

Macroaxis Story

As many millenniums are trying to avoid consumer cyclical space, it makes sense to summarize Toll Brothers a little further and try to understand its current market patterns. We will evaluate why we are still confident in anticipation of a recovery. Is the entity valuation justified? I am going to cover the stock perspective on valuation to give you a better outlook on taking a position in it.

Published over a month ago

View all stories for Toll Brothers | View All Stories

The impact of new bullish trends on Toll Brothers (NYSE:TOL)

The company has 3.99 B in debt with debt to equity (D/E) ratio of 0.84, which is OK given its current industry classification. Our trade recommendation tool can be used to complement Toll Brothers advice provided by experts. It analyzes the firm's potential to grow against your specific risk preferences and investment horizon.

We determine the current worth of Toll Brothers using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Toll Brothers based exclusively on its fundamental and basic technical indicators. By analyzing Toll Brothers's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Toll Brothers's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Toll Brothers. We calculate exposure to Toll Brothers's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Toll Brothers's related companies.

Toll Brothers Investment Alerts

Toll Brothers investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Toll Brothers performance across your portfolios.Please check all investment alerts for Toll Brothers

Toll Brothers Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Toll Brothers value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Toll Brothers competition to find correlations between indicators driving the intrinsic value of Toll Brothers.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Toll Brothers, but it might be worth checking our own buy vs. sell analysis

Breaking down Toll Brothers Indicators

Toll Brothers reported the last year's revenue of 6.91 B. Total Income to common stockholders was 449.62 M with profit before taxes, overhead, and interest of 1.46 B.

Margins Breakdown

Toll Brothers profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Toll Brothers itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Toll Brothers profit margins.

7.55

Profit Margin

6.97

Operating Margin

8.63

EBITDA Margin

	Operating Margin	6.97
	EBITDA Margin	8.63
	Gross Margin	17.08
	Profit Margin	7.55

Toll Brothers Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. Toll Brothers Average Assets is increasing over the last 8 years. The previous year's value of Toll Brothers Average Assets was 7,231,856,105. Additionally, Toll Brothers Earnings Before Interest Taxes and Depreciation Amortization EBITDA is relatively stable at the moment. Toll Brothers Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment. Toll Brothers Average Assets is relatively stable at the moment. Additionally, Toll Brothers Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years.

Will price continue to hike in January 2021?

The semi variance is down to 8.18 as of today. Toll Brothers shows above-average downside volatility for the selected time horizon. We advise investors to inspect Toll Brothers further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Toll Brothers future alpha.

Our Conclusion on Toll Brothers

While many of the other players within the residential construction industry are still a little expensive, even after the recent corrections, Toll Brothers may offer a potential longer-term growth to stakeholders. To conclude, as of the 7th of December 2020, our analysis shows that Toll Brothers slowly supersedes the market. The company is overvalued and projects below average chance of financial distress for the next 2 years. Our latest 30 days buy-hold-sell advice on the company is Hold.

About Contributor

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Toll Brothers. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2021 Macroaxis LLC