Recent News
Aug. 21–27: Company announcements highlighted new model-home openings and community launches in Georgia and California; Aug. 27 posts noted last-chance availability at a Reno community. Nov. 3: Toll Brothers won the Southern Nevada Home Builders Association Home of the Year award for its Summerlin Ascension Highrock product. These items emphasize active community rollouts and local recognition across key markets.
Technical Analysis
Directional indicators: ADX at 15.1 indicates no dominant trend, limiting conviction for a sustained breakout despite short-term swings. DI+ at 16.83 shows a decreasing pattern, which reads as bearish pressure on directional strength; DI- at 21.38 also shows a decreasing pattern, which reads as bullish for directional balance. Together these readings produce restricted directional conviction and imply price action may depend on a momentum trigger rather than trend continuation.
MACD: MACD sits at -0.52 with the signal line at -0.35. The MACD shows a dip & reversal pattern, indicating momentum turning toward bullish; however MACD currently remains below its signal line, so a confirmed bullish momentum shift requires a cross above the signal line to validate that reversal.
MRO: The MRO registers -9.03 with a peak & reversal tag, indicating the price sits below the oscillator’s target and carries potential for upward mean reversion. That price-under-target signal aligns with the valuation view and suggests technical upside pressure if momentum follows through.
RSI: RSI at 50.65 with a dip & reversal pattern sits near the midpoint, implying buying and selling interest roughly balanced; the recent dip-and-reverse character suggests room to extend a recovery toward bullish ranges if momentum indicators confirm.
Moving averages, bands and support: Price closed at $134.25, slightly below the 20-day average of $135.19 and tracking the 12-day EMA of $134.39 (decreasing). The 50-day average at $137.35 sits above current price, while the 200-day average at $119.35 remains well below, supporting an intermediate uptrend bias over longer horizons. Bollinger bands compress (20-day stdev $2.32), implying contained volatility; the super-trend lower at $131.11 provides a nearby structural support that could limit downside in the near term.
Fundamental Analysis
Revenue and margins: Total revenue reached $2,945,117,000 with YoY revenue growth at 7.52%. Gross margin stood at 25.17%, down 7.45% YoY. Operating (EBIT) margin measured 16.56%, up 0.87% QoQ but down 9.14% YoY; that operating margin sits well above the industry peer mean of 4.12% and the industry peer high of 5.91%, indicating material outperformance on operating profitability versus peers.
Profitability and returns: Net income totaled $369,621,000. Return on equity at 4.57% and return on assets at 2.59% improved QoQ (ROE QoQ +2.98 percentage points, ROA QoQ +2.01 percentage points) but declined YoY (ROE YoY -9.62%, ROA YoY -8.20%). Earnings per share came in at $3.73 versus an estimate of $3.60, producing an EPS surprise of 3.61%.
Cash flow and liquidity: Operating cash flow registered $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 totaled $852,311,000 and the current ratio measured 4.14, well above the industry peer mean of 1.78, reflecting ample short-term liquidity relative to peers.
Capital structure: Total debt amounted to $3,071,837,000 with debt-to-assets at 21.34%, below the industry peer low of 32.10%, and debt-to-equity at 0.379. Interest coverage near 9.99x provides healthy ability to service debt. Debt-to-EBITDA at 6.02x warrants monitoring, though coverage and cash levels mitigate immediate funding strain.
Valuation context: P/E near-term stands at 31.74, slightly above the industry peer mean of 30.52 but below the industry peer median of 44.47. Price-to-book at 1.47 sits above the industry peer high of 1.40. Enterprise-to-revenue and free-cash metrics (EVR 4.80; free cash flow yield 2.90%) support WMDST’s assessment. The current valuation as determined by WMDST classifies the stock as under-valued relative to the company’s cash generation and above-peer operating margin profile.
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 % |
|