Skip to Content
Morningstar
Get 14 Days Free

Toll Brothers Inc TOL

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Toll Brothers Expects to Deliver Up to 20% More Homes in 2021 as the Housing Market Remains Hot

Analyst Note

| Brian Bernard, CFA, CPA |

2020 turned out to be a decent year for Toll Brothers despite the pandemic. The homebuilder benefited from a sharp rebound in housing demand and increased buying from affluent households, which is its target market. Seasonally adjusted annual housing starts reached over 1.5 million units in October, and we estimate that affluent households accounted for over half of the incremental national home purchases last quarter.

Read Full Analysis

Company Profile

Business Description

Toll Brothers is the leading luxury homebuilder in the United States with an average sales price well above public competitors'. The company operates in 50 markets across 23 states and caters to move-up, active-adult, and second-homebuyers. Traditional homebuilding operations represents approximately 95% of the company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers, primarily on the East Coast. The company's headquarters is in Horsham, Pennsylvania.

Contact
1140 Virginia Drive
Fort Washington, PA, 19034
T +1 215 938-8000
Sector Consumer Cyclical
Industry Residential Construction
Most Recent Earnings Oct 31, 2020
Fiscal Year End Oct 31, 2021
Stock Type Cyclical
Employees 4,500

Related

Market Update
New 5-Star Stocks
These names are all significantly undervalued by our standards after the market rout.
Susan Dziubinski
Stock Strategist Industry Reports
Coronavirus Opportunity and Risk: Industrials, Energy, and Basic Materials
Our analysts discuss where they see value in their sectors today.
Susan Dziubinski
US Videos
Our Top U.S. Homebuilder Picks
Despite a drop in homebuilder sentiment recently, we see elevated levels of new residential construction in the coming years.
Brian Bernard
US Videos
Rising Costs Shouldn't Deter Homebuilders
We expect housing starts to keep marching higher and think Lennar and Toll Brothers look undervalued.
Charles Gross
US Videos
One More Look at Jobs Data Ahead of Rate Decision
The employment report this week will reveal if the job market remains strong. Plus, results from AutoZone, Lululemon, and Dollar General.
Jeremy Glaser
Stock Strategist Industry Reports
We're Bullish on a Housing Recovery
Stronger household formation by millennials is key.
Charles Gross
Stock Analyst Update
Toll Brothers Delivers, but Shares Fairly Priced
Strong results coupled with excellent new-home sales figures have propelled shares of this no-moat homebuilder close to our fair-value estimate.
Brian Bernard
US Videos
Homebuilders Set to Benefit as Demand Grows
We don't see any economic moats for homebuilders under our coverage, but D.R. Horton has great positioning, and Toll Brothers is undervalued.
Brian Bernard
US Videos
Week Ahead: Will Housing Build on Its Momentum?
We'll be watching this week's housing data for clues.
Jeremy Glaser
US Videos
Friday Five: Auto Stocks Have Mileage Left
Plus: Sizing up the ECB's actions, what the BP ruling means for investors, and more.
Jason Stipp
Quarter-End Insights
Industrials Stocks: Automakers Look Undervalued
We are concerned about a slow start to U.S. light-vehicle sales this year, but we expect improvement once the cold abates.
David Whiston
Quarter-End Insights
Our Outlook for Industrials Stocks
Most industrials are fairly valued at present, with a pocket of value in automakers.
Keith Schoonmaker
Quarter-End Insights
Our Outlook for the Credit Markets
The corporate bond market will probably struggle to return much above break-even in 2014.
David Sekera
Credit Insights
Exuberant Equities Fail to Excite Corporate Bond Market
After suffering from the sharp increase in interest rates and widening credit spreads this summer, investors are hesitant to pay tighter credit spreads for longer-dated corporate bonds.
David Sekera
Credit Insights
Corporate Bonds Languish as Equity Markets Roar Ahead
Stronger-than-expected economic indicators prompted investors to rethink when the Federal Reserve may begin to taper its asset-purchase program.
David Sekera
Quarter-End Insights
Our Outlook for the Credit Markets
Rising interest rates have taken their toll, but as the Fed delays dialing back on stimulus, investors are poised to recapture some of their losses.
David Sekera
Credit Insights
Equities Rally, but Corporate Credit Spreads Stay Range-Bound
Interest rates have generally been on an uptrend since the beginning of May, and idiosyncratic risk seems to be rising from increased shareholder activism and aggressive share-buyback programs.
David Sekera
Quarter-End Insights
Our Outlook for Industrials Stocks
Recent U.S. economic data bodes well for industrial companies' near-term fortunes.
James Krapfel
Credit Insights
January Spreads Tightened, but Investors Still Lost Money
Many investors tried to dodge the effects of rising interest rates as demand for shorter-duration bonds increased.
David Sekera
Credit Insights
Bond Investors Key In on the Economy
Strong economic data and global stimulus hopes overcame weak corporate earnings in the bond market last week.
David Schivell