Toll Brothers Inc (TOL) Stock Analysis
Verdict: BUY
Luxury niche resilience and peer-low valuation (11.3x P/E) offer a margin of safety against the headwind of heavy insider selling.
Investment score: 68/100
Analysis as of
Is Toll Brothers Inc stock worth reviewing? AI model thesis
Toll Brothers trades at a discount to its peers despite maintaining top-tier margins and a healthy balance sheet. Recent technical cooling and aggressive insider selling are the primary risks, but the fundamental valuation gap and high FCF yield suggest upside.
7-factor investment score
- Valuation: 75/100 (weight 20%)
- Financial Health: 80/100 (weight 15%)
- Technical Momentum: 55/100 (weight 15%)
- Earnings Quality: 70/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 82/100 (weight 10%)
- Risk-Adjusted Return: 65/100 (weight 15%)
Toll Brothers Inc opportunities and risks
What speaks for TOL
- Relative Valuation Discount
What speaks against TOL
- Aggressive Insider Selling
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| TOL | 11.3x | 1.3x | 8.9x | 24.9% | 11.7% | 8.6% |
| DHI | 13.8x | 1.2x | 11.2x | 22.6% | 9.2% | 8.1% |
| PHM | 13.1x | 1.5x | 10.8x | 24.5% | 11.6% | 6.1% |
| LEN | 13.2x | 0.6x | 10.8x | 8.0% | 4.9% | 3.9% |
| NVR | 15.4x | 1.8x | 11.1x | 22.2% | 12.1% | 8.2% |
| IBP | 25.4x | 2.2x | 11.0x | 33.3% | 8.5% | -1.5% |
| Peer median | 13.8x | 1.5x | 11.0x | 22.6% | 9.2% | 6.1% |
Frequently asked questions about Toll Brothers Inc (TOL)
Is TOL stock a good investment?
The cached TradeMates AI model rates Toll Brothers Inc as BUY with an investment score of 68/100. Toll Brothers trades at a discount to its peers despite maintaining top-tier margins and a healthy balance sheet. Recent technical cooling and aggressive insider selling are the primary risks, but the fundamental valuation gap and high FCF yield suggest upside. This is algorithmic model output, not personal investment advice.
Is TOL stock a buy?
The TradeMates model verdict for TOL is BUY with an investment score of 68/100. Treat this as a model signal to review, not a personal buy recommendation.