Recent News
On January 23, 2026 Toll Brothers received Fortune’s No. 1 Most Admired Home Builder designation in its category. In late December 2025 and into early 2026 the company substantially completed the previously announced sale of a large portion of its Apartment Living platform to Kennedy Wilson, monetizing multifamily investments and transferring the operating platform. In early February 2026 the company amended and extended major credit facilities, extending revolver and term loan maturities and slightly increasing capacity, and announced a modest share-repurchase program tied to available cash and proceeds from asset monetizations.
Technical Analysis
ADX at 38.18 registers a strong directional market environment; directional indicators show DI- at 34.95 and DI+ at 14.08 with DI+ described as peak-and-reverse, a bearish development that currently biases price action to the downside given DI- dominance.
MACD sits at -3.96 and trends decreasing, trading below its signal line (-2.57); that configuration signals continuing bearish momentum and compresses the near-term upside case relative to the current valuation reference.
MRO registers -0.6 and is decreasing, indicating the market price sits slightly below the implied target and leaving only modest upward potential from momentum-mean convergence unless momentum indicators shift materially.
RSI at 47.24 and decreasing shows momentum cooling into a neutral band; absent a meaningful RSI reversal, expect limited bullish conviction from momentum oscillators.
Price trades below the 20-day (140.84) and 50-day (149.30) averages while remaining slightly above the 200-day average ($135.33); the 12-day EMA is decreasing. Ichimoku components (Tenkan 142.19, Kijun 149.50, Senkou A 149.65, Senkou B 143.46) place price beneath the cloud and both conversion and base lines, reinforcing a short-term bearish posture. Price sits near the lower Bollinger band (1x lower = $134.95), implying proximity to short-term support and compression of realized volatility relative to the 52-week range.
Fundamental Analysis
Revenue totaled $2,145,627,000. YoY revenue change registers -15.61% and recent quarter-over-quarter revenue movement shows further contraction; gross profit came to $476,991,000 with a gross margin of 22.231%, which declined ~10.06% YoY. Operating income (EBIT) reached $219,055,000 and the operating margin measured 10.209%, down 38.04% QoQ and down 13.39% YoY—indicators of compressed operating leverage during the most recent period.
Earnings per share arrived at $2.19 versus an estimate of $2.11, producing an EPS surprise of 3.79%. Net income totaled $210,932,000. Adjusted capital actions included a share-repurchase of roughly 0.3 million shares funded in part by proceeds tied to multifamily asset sales.
Liquidity and balance-sheet metrics show $1,202,828,000 in cash and short-term investments and a current ratio of 4.33, signaling substantial near-term liquidity. Net debt stands at $1,518,491,000 and total debt about $2,854,019,000. Debt-to-EBITDA reads 12.13, reflecting elevated leverage relative to trailing operating cashflow measures and indicating a higher sensitivity of leverage metrics to earnings variability.
Free cash flow registered negative $11,594,000 with a free cash flow yield of -0.085%, while operating cash flow measured $7,268,000—both figures highlight limited near-term cash generation after working-capital swings. Days inventory outstanding extends to ~395 days and inventory turnover sits at 0.1496, underlining a long build/hold cycle and significant capital tied to residential inventories.
Profitability and returns remain modest: return on assets 1.457%, return on equity 2.508%, and return on invested capital 1.517%. WMDST values the stock consistent with a mean analyst price target of $153.96; at the recent close of $136.46 that implies approximately 12.8% distance to the mean target, a gap that must reconcile with compressed margins, elevated inventory exposure, and the company’s ongoing capital reallocation from multifamily assets.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-01-31 |
| REPORT DATE: | 2026-02-17 |
| NEXT REPORT DATE: | 2026-05-19 |
| CASH FLOW | Begin Period Cash Flow | $ 1.3 B |
| Operating Cash Flow | $ 7.3 M | |
| Capital Expenditures | $ -18.86 M | |
| Change In Working Capital | $ -300.33 M | |
| Dividends Paid | $ -25.00 M | |
| Cash Flow Delta | $ -62.32 M | |
| End Period Cash Flow | $ 1.3 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.1 B | |
| Forward Revenue | $ 863.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.7 B | |
| Depreciation | $ 16.2 M | |
| Depreciation and Amortization | $ 16.2 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.9 B | |
| PROFITABILITY | ||
| Gross Profit | $ 477.0 M | |
| EBITDA | $ 235.3 M | |
| EBIT | $ 219.1 M | |
| Operating Income | $ 219.1 M | |
| Interest Income | $ 8.9 M | |
| Interest Expense | — | |
| Net Interest Income | $ 8.9 M | |
| Income Before Tax | $ 273.6 M | |
| Tax Provision | $ 62.6 M | |
| Tax Rate | 22.9 % | |
| Net Income | $ 210.9 M | |
| Net Income From Continuing Operations | $ 210.9 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.11 | |
| EPS Actual | $ 2.19 | |
| EPS Difference | $ 0.08 | |
| EPS Surprise | 3.791 % | |
| Forward EPS | $ 3.58 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 14.4 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 8.4 B | |
| Total Current Assets | $ 12.9 B | |
| Cash and Short-Term Investments | $ 1.2 B | |
| Cash | $ 1.2 B | |
| Net Receivables | — | |
| Inventory | $ 11.2 B | |
| Long-Term Investments | $ 98.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 536.1 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 3.0 B | |
| Net Debt | $ 1.5 B | |
| Total Debt | $ 2.9 B | |
| Total Liabilities | $ 6.0 B | |
| EQUITY | ||
| Total Equity | $ 8.4 B | |
| Retained Earnings | $ 8.8 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 88.73 | |
| Shares Outstanding | 94.767 M | |
| Revenue Per-Share | $ 22.64 | |
| VALUATION | Market Capitalization | $ 13.6 B |
| Enterprise Value | $ 15.3 B | |
| Enterprise Multiple | 65.012 | |
| Enterprise Multiple QoQ | 164.981 % | |
| Enterprise Multiple YoY | -3.001 % | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 7.129 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.716 | |
| Asset To Liability | 2.4 | |
| Debt To Capital | 0.253 | |
| Debt To Assets | 0.198 | |
| Debt To Assets QoQ | -1.538 % | |
| Debt To Assets YoY | -6.244 % | |
| Debt To Assets IPRWA | — | |
| Debt To Equity | 0.339 | |
| Debt To Equity QoQ | -3.744 % | |
| Debt To Equity YoY | -7.914 % | |
| Debt To Equity IPRWA | — | |
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.623 | |
| Price To Book QoQ | 5.532 % | |
| Price To Book YoY | -6.565 % | |
| Price To Book IPRWA | — | |
| Price To Earnings (P/E) | 65.749 | |
| Price To Earnings QoQ | 124.466 % | |
| Price To Earnings YoY | -15.042 % | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | -1.26 | |
| Price To Sales (P/S) | 6.36 | |
| Price To Sales QoQ | 71.197 % | |
| Price To Sales YoY | -12.67 % | |
| Price To Sales IPRWA | — | |
| FORWARD MULTIPLES | ||
| Forward P/E | 39.223 | |
| Forward PE/G | -0.752 | |
| Forward P/S | 15.809 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.639 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.148 | |
| Asset Turnover Ratio QoQ | -37.402 % | |
| Asset Turnover Ratio YoY | 7.593 % | |
| Asset Turnover Ratio IPRWA | — | |
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | 0.15 | |
| Inventory Turnover Ratio QoQ | -35.596 % | |
| Inventory Turnover Ratio YoY | 8.996 % | |
| Inventory Turnover Ratio IPRWA | — | |
| 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 | 0.216 | |
| CapEx To Revenue | -0.009 | |
| CapEx To Depreciation | -1.162 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 11.1 B | |
| Net Invested Capital | $ 11.1 B | |
| Invested Capital | $ 11.1 B | |
| Net Tangible Assets | $ 8.4 B | |
| Net Working Capital | $ 9.9 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.403 | |
| Current Ratio | 4.328 | |
| Current Ratio QoQ | 3.906 % | |
| Current Ratio YoY | 2.098 % | |
| Current Ratio IPRWA | — | |
| Quick Ratio | 0.576 | |
| Quick Ratio QoQ | -2.917 % | |
| Quick Ratio YoY | 52.605 % | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 12.13 | |
| Cost Of Debt | 1.229 % | |
| Interest Coverage Ratio | 4.485 | |
| Interest Coverage Ratio QoQ | -61.166 % | |
| Interest Coverage Ratio YoY | -0.035 % | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | 0.015 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 20.406 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 8.438 | |
| Dividend Payout Ratio | 0.119 | |
| Dividend Rate | $ 0.26 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.605 % | |
| Revenue Growth | -37.325 % | |
| Revenue Growth QoQ | -329.834 % | |
| Revenue Growth YoY | -15.608 % | |
| Revenue Growth IPRWA | — | |
| Earnings Growth | -52.183 % | |
| Earnings Growth QoQ | -328.993 % | |
| Earnings Growth YoY | -16.109 % | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 22.231 % | |
| Gross Margin QoQ | -10.239 % | |
| Gross Margin YoY | -10.061 % | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 10.209 % | |
| EBIT Margin QoQ | -38.041 % | |
| EBIT Margin YoY | -13.388 % | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | 10.209 % | |
| Return On Sales QoQ | -38.041 % | |
| Return On Sales YoY | -13.388 % | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -11.59 M | |
| Free Cash Flow Yield | -0.085 % | |
| Free Cash Flow Yield QoQ | -101.4 % | |
| Free Cash Flow Yield YoY | -97.373 % | |
| Free Cash Flow Yield IPRWA | — | |
| Free Cash Growth | -101.501 % | |
| Free Cash Growth QoQ | -181.912 % | |
| Free Cash Growth YoY | -38.835 % | |
| Free Cash Growth IPRWA | — | |
| Free Cash To Net Income | -0.055 | |
| Cash Flow Margin | 2.024 % | |
| Cash Flow To Earnings | 0.206 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.457 % | |
| Return On Assets QoQ | -52.848 % | |
| Return On Assets YoY | 10.63 % | |
| Return On Assets IPRWA | — | |
| Return On Capital Employed (ROCE) | 1.914 % | |
| Return On Equity (ROE) | 0.025 | |
| Return On Equity QoQ | -53.564 % | |
| Return On Equity YoY | 10.0 % | |
| Return On Equity IPRWA | — | |
| DuPont ROE | 2.529 % | |
| Return On Invested Capital (ROIC) | 1.517 % | |
| Return On Invested Capital QoQ | -60.526 % | |
| Return On Invested Capital YoY | -80.185 % | |
| Return On Invested Capital IPRWA | — | |