TOL

Consumer Cyclical

Toll Brothers, Inc. · Residential Construction · $13B

UQS Score — Balanced Preset
43.8
Below Average

Toll Brothers, Inc. scores 43.8/100 using the Balanced preset.

UQS vs Consumer Cyclical Sector
TOL
43.8
Sector avg
37.7
Quality
Good
Moat
Weak
Growth
Weak
Risk
Good
Valuation
Attractive

What is Toll Brothers, Inc.?

Toll Brothers is the United States' leading luxury homebuilder, serving move-up, empty-nester, active-adult, and second-home buyers across the country. Founded in 1967 and headquartered in Fort Washington, Pennsylvania, the company has built a recognizable name in upscale residential communities.

Toll Brothers designs, builds, markets, and sells detached and attached homes in luxury residential communities nationwide. The company operates through two segments — Traditional Home Building and City Living — with the latter focused on urban condominiums under the Toll Brothers City Living brand. Beyond home sales, Toll Brothers provides mortgage, title, and insurance services, operates golf courses and country clubs, develops rental apartment communities, and offers interior customization options ranging from flooring to smart home technology.

Toll Brothers was founded in 1967 and is headquartered in Fort Washington, Pennsylvania.

  • Luxury single-family and attached homes in planned communities
  • Urban condominiums via Toll Brothers City Living
  • Rental apartment development through strategic partnerships
  • Mortgage, title, and insurance services for homebuyers
  • Interior fit-out options including smart home and security technology

Is TOL a Good Stock to Buy?

UQS Score rates TOL as Below Average overall, reflecting a mixed picture across its five quality pillars.

Toll Brothers shows relative strength in Quality and Risk, suggesting the business maintains reasonable operational discipline and a manageable risk profile compared to sector peers. The Valuation pillar also registers as Good, meaning the stock does not appear obviously expensive relative to its fundamentals.

The Moat and Growth pillars both register as Weak — the company faces limited competitive differentiation in the homebuilding industry and has not demonstrated strong growth momentum in the current environment.

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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does TOL pay dividends?

Yes — Toll Brothers, Inc. pays a dividend.

Toll Brothers pays a regular dividend, which is relatively uncommon among homebuilders and reflects a degree of financial confidence from management. The dividend provides income-oriented investors with a return component beyond price appreciation. Given the cyclical nature of homebuilding, investors should weigh dividend sustainability against broader housing market conditions.

When does TOL report earnings?

Toll Brothers reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.

The company's recent results reflect the broader pressures facing the luxury homebuilding sector, including elevated mortgage rates and shifting buyer demand. Revenue and order trends have been closely watched as indicators of near-term health. Pillar ratings for Quality and Risk suggest the business has managed these headwinds with reasonable discipline.

For the most recent quarter's results and guidance, visit Toll Brothers' official investor relations page.

TOL Price History

+139.8% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Toll Brothers, Inc.?

$
Today it would be worth
$26,768
That's a +168% total return, or +21.8% annualized.

Based on Toll Brothers, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

TOL Long-term Outlook

The Growth pillar rating of Weak signals that near-term expansion may be constrained, likely reflecting the challenging rate environment and its effect on housing affordability. However, the Good Risk rating suggests the company is not in a precarious financial position. The Good Valuation pillar indicates the market may already be pricing in some of these headwinds. Long-term trajectory will depend heavily on the direction of mortgage rates and the supply-demand balance in luxury housing markets.

Growth drivers

  • Pent-up demand from move-up and empty-nester buyers as rate conditions evolve
  • Expansion of City Living and rental apartment segments into new urban markets
  • Interior customization and ancillary services as margin-enhancing revenue streams

Key risks

  • Prolonged elevated mortgage rates suppressing luxury home demand
  • Cyclical exposure to housing market downturns with limited moat protection
  • Land and construction cost inflation compressing profitability

TOL vs Peers

Toll Brothers competes in a homebuilding sector that includes both national volume builders and specialized construction services companies.

NVRTOL scores lower
NVR, Inc.

NVR operates a capital-light land option model that distinguishes it from traditional land-owning homebuilders like Toll Brothers.

LENTOL scores higher
Lennar Corporation

Lennar targets a broader range of price points and buyer segments, giving it greater volume scale compared to Toll Brothers' luxury focus.

IBPSimilar UQS
Installed Building Products, Inc.

IBP focuses on insulation and building products installation rather than home construction, representing an adjacent part of the residential building value chain.

Frequently Asked Questions

What does Toll Brothers do?

Toll Brothers designs, builds, and sells luxury homes across the United States, serving move-up, empty-nester, active-adult, and second-home buyers. The company also develops urban condominiums, rental apartment communities, and golf courses, and provides mortgage, title, and insurance services to its homebuyers.

Does TOL pay dividends?

Yes, Toll Brothers pays a regular dividend. This is relatively uncommon in the homebuilding sector and signals a degree of financial stability. Investors should review the company's investor relations page for the current dividend rate and payment schedule.

When does TOL report earnings?

Toll Brothers reports financial results on a quarterly basis, as is standard for US-listed public companies. For the exact date of the next earnings release, check Toll Brothers' investor relations page or a financial data provider.

Is TOL a good stock to buy?

UQS Score rates TOL as Below Average overall. The Quality and Risk pillars show relative strength, but the Weak Moat and Weak Growth ratings highlight meaningful concerns. Whether TOL fits your portfolio depends on your investment goals — view the full pillar breakdown on UQS Score for a deeper picture.

Is TOL overvalued?

The UQS Valuation pillar for TOL is rated Good, suggesting the stock does not appear obviously overpriced relative to its fundamentals. However, valuation should always be considered alongside growth and moat strength — both of which are rated Weak for Toll Brothers.

How does TOL compare to its competitors?

Toll Brothers occupies a distinct luxury niche compared to volume builders like Lennar, which serves a broader price spectrum. NVR uses a capital-light land model that differs structurally from Toll Brothers' approach. Each competitor carries a different UQS Score — see the comparison section on this page for side-by-side ratings.

What is TOL's market cap bracket?

Toll Brothers is classified as a large-cap company, placing it among the more substantial publicly traded homebuilders in the United States by market value.

Who founded Toll Brothers?

Toll Brothers was founded by brothers Robert and Bruce Toll in 1967. The company grew from a regional Pennsylvania homebuilder into the largest luxury homebuilder in the United States. More founding history is available through publicly accessible sources and the company's own corporate history.

Is TOL a long-term quality investment?

As a long-term quality indicator, UQS Score rates TOL as Below Average, driven primarily by Weak Moat and Weak Growth pillar ratings. The Good Quality and Risk ratings provide some reassurance about operational stability, but limited competitive differentiation is a factor to consider for long-horizon investors.

What is the main competitive advantage of Toll Brothers?

Toll Brothers' primary differentiation is its luxury brand positioning and the breadth of its homebuying experience — from community design to interior customization and ancillary services. However, the UQS Moat pillar rates this advantage as Weak, reflecting the difficulty of sustaining durable competitive barriers in the homebuilding industry.

What sector does TOL belong to?

Toll Brothers is classified in the Consumer Cyclical sector, specifically within the residential construction and homebuilding industry. This means the company's performance is closely tied to broader economic conditions, consumer confidence, and interest rate trends.

Is TOL a growth stock or value stock?

Based on UQS pillar ratings, TOL does not fit neatly into either category. The Growth pillar is rated Weak, making a pure growth label difficult to justify. The Valuation pillar is rated Good, which leans toward value territory — though a Weak Moat limits the conviction behind that framing.

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Pro Analysis

TOL — Score History

3540455055Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 12 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 15, 202644.862.621.08.266.682.0+0.3
May 7, 202644.562.621.08.266.680.0-0.1
May 3, 202644.662.621.08.266.680.7+0.3
Apr 26, 202644.362.621.08.266.678.3+0.1
Apr 20, 202644.262.621.08.266.677.8-0.6
Apr 19, 202644.862.621.08.866.681.2-0.3
Apr 18, 202645.162.621.08.866.683.5+0.1
Apr 14, 202645.062.621.08.866.682.4-0.2
Apr 12, 202645.262.621.09.066.683.3-0.1
Apr 10, 202645.362.621.09.066.684.20.0

TOL — Pillar Breakdown

Quality

60.1/100 (25%)

Toll Brothers, Inc. shows solid profitability with healthy returns on capital and reasonable margins.

Capital Efficiency (ROIC)Moderate

How effectively capital is deployed to generate returns.

Return on EquityModerate

Profitability relative to shareholders' equity.

Operating ProfitabilityModerate

Ability to convert revenue into operating profit.

Net ProfitabilityModerate

Bottom-line profit as a share of revenue.

Gross Profit / AssetsModerate

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

6.6/100 (20%)

Toll Brothers, Inc. faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthWeak

Analyst consensus for future earnings growth.

Risk

67.0/100 (15%)

Toll Brothers, Inc. maintains a reasonable risk profile with manageable debt levels.

Financial LeverageModerate

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioStrong

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

80.9/100 (15%)

Toll Brothers, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioModerate

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

21/100 (25%)

Toll Brothers, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for TOL.

Score Composition

Quality
60.1×25%15.0
Growth
6.6×20%1.3
Risk
67.0×15%10.0
Valuation
80.9×15%12.1
Moat
21.0×25%5.3
Total
43.8Below Average

Financial Data

More Stock Analysis

How is the TOL UQS Score Calculated?

The UQS (Unified Quality Score) for Toll Brothers, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Toll Brothers, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Toll Brothers, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.