Recent News
On July 26, 2025, Toll Brothers opened Raven Crest, a new luxury townhome community in Summerlin, Nevada. Recently the company agreed to sell its multifamily platform and related assets to Kennedy Wilson for $347 million, transferring interests in completed and developing properties and outsourcing multifamily operations to that buyer.
Technical Analysis
Directional indicators (ADX/DI+/DI-): ADX at 16.72 indicates no trend; DI+ registered a peak & reversal, a bearish signal, while DI- shows a dip & reversal, also bearish. Together, the directional indicators temper momentum despite other constructive signs.
MACD: MACD sits at -0.26 and has been increasing; it has crossed above its signal line (-0.47), which constitutes a bullish momentum signal even though the MACD level remains negative.
MRO (Momentum/Regression Oscillator): MRO at -22.05 with a dip & reversal indicates price sits below target and implies upward potential toward that target; the negative value signals upside pressure rather than immediate over-extension.
RSI: RSI at 53.76 and increasing reflects modest bullish momentum with room before overbought territory, supporting measured upside potential into the near term.
Price vs. Moving Averages and Cloud: Current price $136.70 trades above the 200-day average of $119.09 and the 20-day average of $133.75; the 12-day EMA is increasing. The ichimoku cloud shows Senkou A at $139.05 and Senkou B at $129.85, placing price inside the cloud boundaries and suggesting consolidation rather than a clear breakout. SuperTrend lower support sits near $129.19.
Volatility & Volume: 42-day and 52-week volatility at 2% remain subdued; reported volume at 615,379 falls below 10/50/200-day averages, indicating limited conviction behind recent moves and raising the chance of muted follow-through.
Fundamental Analysis
Profitability and margins: Operating (EBIT) margin at 16.56% improved QoQ by 0.87 percentage points but fell YoY by 9.14 percentage points. That operating margin sits above the industry peer mean of 4.12% and above the industry peer high of 5.91% for the homebuilding peer set, indicating relatively strong margin performance versus peers.
Revenue and earnings: Total revenue reached $2,945,117,000 with revenue growth listed at 7.52%. Reported EPS came in at $3.73 versus an estimate of $3.60, producing an EPS surprise of 3.61% (EPS difference $0.13). Forward EPS equals $3.655 with a forward P/E around 31.16.
Cash flow and balance sheet: Operating cash flow totaled $370,310,000 and free cash flow $344,863,000, producing a free cash flow yield of 2.90%, above the industry peer mean of 0.46%. Cash and short-term investments equal $852,311,000. The current ratio of 4.14 compares favorably to the industry peer mean of 1.78, signaling ample near-term liquidity.
Leverage and coverage: Debt-to-assets of 21.34% and debt-to-equity of 37.95% sit below industry peer means (debt-to-assets mean 40.67%, debt-to-equity mean 106.35%), while interest coverage near 9.99x exceeds the industry peer mean of 2.15x. The capital structure therefore shows lower leverage and stronger coverage than peers.
Operational efficiency: Asset turnover at 0.206 falls below the industry peer mean of 0.2567, and inventory days outstanding around 495 indicate a capital-intensive inventory profile common in homebuilding. Gross margin at 25.17% sits below the industry peer mean of 32.97%, suggesting product mix or cost structure considerations despite strong operating margin performance.
QoQ / YoY dynamics: Several short-term dynamics show mixed movement: EBIT margin rose QoQ by 0.87 percentage points while declining YoY by 9.14 percentage points; revenue growth displays 7.52% overall but a large sequential decline QoQ (-84.11% as reported), and earnings growth shows 6.57% overall against reported steep QoQ and YoY declines in the provided fields. Cash conversion and retained earnings remain solid, with cash flow to earnings near 72.63%.
Valuation summary: WMDST values the stock as under-valued. Market multiples show a trailing P/E of 31.74 and a forward P/E about 31.16—levels close to the industry peer mean for forward P/E (≈30.14). Enterprise multiple and EV ratios align with a premium multiple justified by margin and liquidity characteristics, while free cash flow yield and below-average leverage support the under-valued assessment.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-07-31 |
| REPORT DATE: | 2025-08-19 |
| NEXT REPORT DATE: | 2025-11-18 |
| CASH FLOW | Begin Period Cash Flow | $ 761.7 M |
| Operating Cash Flow | $ 370.3 M | |
| Capital Expenditures | $ -25.45 M | |
| Change In Working Capital | $ -88.74 M | |
| Dividends Paid | $ -24.26 M | |
| Cash Flow Delta | $ 176.6 M | |
| End Period Cash Flow | $ 938.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.9 B | |
| Forward Revenue | $ 703.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 2.2 B | |
| Depreciation | $ 22.3 M | |
| Depreciation and Amortization | $ 22.3 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 2.5 B | |
| PROFITABILITY | ||
| Gross Profit | $ 741.4 M | |
| EBITDA | $ 510.1 M | |
| EBIT | $ 487.7 M | |
| Operating Income | $ 487.7 M | |
| Interest Income | $ 7.0 M | |
| Interest Expense | — | |
| Net Interest Income | $ 7.0 M | |
| Income Before Tax | $ 499.5 M | |
| Tax Provision | $ 129.9 M | |
| Tax Rate | 26.002 % | |
| Net Income | $ 369.6 M | |
| Net Income From Continuing Operations | $ 369.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 3.60 | |
| EPS Actual | $ 3.73 | |
| EPS Difference | $ 0.13 | |
| EPS Surprise | 3.611 % | |
| Forward EPS | $ 3.65 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 14.4 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 8.1 B | |
| Total Current Assets | $ 12.5 B | |
| Cash and Short-Term Investments | $ 852.3 M | |
| Cash | $ 852.3 M | |
| Net Receivables | — | |
| Inventory | $ 11.1 B | |
| Long-Term Investments | $ 102.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 619.6 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 3.0 B | |
| Net Debt | $ 2.1 B | |
| Total Debt | $ 3.1 B | |
| Total Liabilities | $ 6.3 B | |
| EQUITY | ||
| Total Equity | $ 8.1 B | |
| Retained Earnings | $ 9.0 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 83.85 | |
| Shares Outstanding | 96.554 M | |
| Revenue Per-Share | $ 30.50 | |
| VALUATION | Market Capitalization | $ 11.9 B |
| Enterprise Value | $ 14.1 B | |
| Enterprise Multiple | 27.708 | |
| Enterprise Multiple QoQ | 1.977 % | |
| Enterprise Multiple YoY | 20.946 % | |
| Enterprise Multiple IPRWA | high: 36.755 median: 36.755 TOL: 27.708 mean: 21.876 low: -87.482 |
|
| EV/R | 4.799 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.778 | |
| Asset To Liability | 2.29 | |
| Debt To Capital | 0.275 | |
| Debt To Assets | 0.213 | |
| Debt To Assets QoQ | 3.392 % | |
| Debt To Assets YoY | 2136.583 % | |
| Debt To Assets IPRWA | high: 0.464 median: 0.464 mean: 0.407 low: 0.321 TOL: 0.213 |
|
| Debt To Equity | 0.379 | |
| Debt To Equity QoQ | 2.955 % | |
| Debt To Equity YoY | 2108.673 % | |
| Debt To Equity IPRWA | high: 1.407 median: 1.407 mean: 1.063 low: 0.548 TOL: 0.379 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.472 | |
| Price To Book QoQ | 10.982 % | |
| Price To Book YoY | -13.524 % | |
| Price To Book IPRWA | TOL: 1.472 high: 1.403 mean: 1.055 median: 1.055 low: 0.944 |
|
| Price To Earnings (P/E) | 31.745 | |
| Price To Earnings QoQ | 3.654 % | |
| Price To Earnings YoY | -8.578 % | |
| Price To Earnings IPRWA | high: 58.679 median: 44.47 TOL: 31.745 mean: 30.518 low: -126.855 |
|
| PE/G Ratio | 4.831 | |
| Price To Sales (P/S) | 4.045 | |
| Price To Sales QoQ | 5.125 % | |
| Price To Sales YoY | -12.547 % | |
| Price To Sales IPRWA | TOL: 4.045 high: 2.156 mean: 1.715 low: 1.434 median: 1.434 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 31.165 | |
| Forward PE/G | 4.743 | |
| Forward P/S | 16.946 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.125 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.206 | |
| Asset Turnover Ratio QoQ | 4.611 % | |
| Asset Turnover Ratio YoY | 0.478 % | |
| Asset Turnover Ratio IPRWA | high: 0.328 mean: 0.257 low: 0.242 median: 0.242 TOL: 0.206 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | 0.2 | |
| Inventory Turnover Ratio QoQ | 6.432 % | |
| Inventory Turnover Ratio YoY | 1.206 % | |
| Inventory Turnover Ratio IPRWA | high: 1.865 mean: 1.407 median: 1.287 low: 0.562 TOL: 0.2 |
|
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.311 | |
| CapEx To Revenue | -0.009 | |
| CapEx To Depreciation | -1.139 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 11.0 B | |
| Net Invested Capital | $ 11.0 B | |
| Invested Capital | $ 11.0 B | |
| Net Tangible Assets | $ 8.1 B | |
| Net Working Capital | $ 9.5 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.282 | |
| Current Ratio | 4.14 | |
| Current Ratio QoQ | 5.588 % | |
| Current Ratio YoY | -0.35 % | |
| Current Ratio IPRWA | TOL: 4.14 high: 2.04 mean: 1.782 median: 1.671 low: 1.517 |
|
| Quick Ratio | 0.47 | |
| Quick Ratio QoQ | 17.697 % | |
| Quick Ratio YoY | -4.592 % | |
| Quick Ratio IPRWA | high: 1.055 median: 0.957 mean: 0.943 low: 0.526 TOL: 0.47 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.023 | |
| Cost Of Debt | 1.204 % | |
| Interest Coverage Ratio | 9.986 | |
| Interest Coverage Ratio QoQ | 8.46 % | |
| Interest Coverage Ratio YoY | -1.905 % | |
| Interest Coverage Ratio IPRWA | TOL: 9.986 high: 5.757 median: 2.56 mean: 2.146 low: -11.225 |
|
| Operating Cash Flow Ratio | 0.089 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 28.855 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 15.238 | |
| Dividend Payout Ratio | 0.066 | |
| Dividend Rate | $ 0.25 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.416 % | |
| Revenue Growth | 7.522 % | |
| Revenue Growth QoQ | -84.108 % | |
| Revenue Growth YoY | -294.82 % | |
| Revenue Growth IPRWA | high: 16.013 % TOL: 7.522 % mean: 1.646 % low: -0.634 % median: -0.634 % |
|
| Earnings Growth | 6.571 % | |
| Earnings Growth QoQ | -93.429 % | |
| Earnings Growth YoY | -131.472 % | |
| Earnings Growth IPRWA | TOL: 6.571 % high: -25.0 % median: -25.0 % mean: -34.906 % low: -74.576 % |
|
| MARGINS | ||
| Gross Margin | 25.174 % | |
| Gross Margin QoQ | -2.256 % | |
| Gross Margin YoY | -7.449 % | |
| Gross Margin IPRWA | high: 56.443 % median: 38.516 % mean: 32.974 % TOL: 25.174 % low: 16.745 % |
|
| EBIT Margin | 16.56 % | |
| EBIT Margin QoQ | 0.871 % | |
| EBIT Margin YoY | -9.141 % | |
| EBIT Margin IPRWA | TOL: 16.56 % high: 5.908 % median: 4.928 % mean: 4.119 % low: -5.496 % |
|
| Return On Sales (ROS) | 16.56 % | |
| Return On Sales QoQ | 0.871 % | |
| Return On Sales YoY | -9.141 % | |
| Return On Sales IPRWA | TOL: 16.56 % high: 5.65 % median: 5.65 % mean: 4.273 % low: -5.496 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 344.9 M | |
| Free Cash Flow Yield | 2.895 % | |
| Free Cash Flow Yield QoQ | -12.14 % | |
| Free Cash Flow Yield YoY | 143.687 % | |
| Free Cash Flow Yield IPRWA | high: 2.909 % TOL: 2.895 % mean: 0.463 % low: -1.554 % median: -1.554 % |
|
| Free Cash Growth | -0.689 % | |
| Free Cash Growth QoQ | -99.616 % | |
| Free Cash Growth YoY | -98.959 % | |
| Free Cash Growth IPRWA | TOL: -0.689 % high: -29.406 % mean: -114.266 % low: -167.834 % median: -167.834 % |
|
| Free Cash To Net Income | 0.933 | |
| Cash Flow Margin | 9.115 % | |
| Cash Flow To Earnings | 0.726 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.585 % | |
| Return On Assets QoQ | 2.013 % | |
| Return On Assets YoY | -8.203 % | |
| Return On Assets IPRWA | TOL: 2.585 % high: 0.929 % median: 0.512 % mean: 0.45 % low: -1.361 % |
|
| Return On Capital Employed (ROCE) | 4.286 % | |
| Return On Equity (ROE) | 0.046 | |
| Return On Equity QoQ | 2.977 % | |
| Return On Equity YoY | -9.62 % | |
| Return On Equity IPRWA | TOL: 0.046 high: 0.016 median: 0.016 mean: 0.01 low: -0.034 |
|
| DuPont ROE | 4.608 % | |
| Return On Invested Capital (ROIC) | 3.27 % | |
| Return On Invested Capital QoQ | 5.928 % | |
| Return On Invested Capital YoY | -106.771 % | |
| Return On Invested Capital IPRWA | TOL: 3.27 % high: 1.366 % median: 1.31 % mean: 0.81 % low: -3.406 % |
|