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Toll Brothers TOL

Toll Brothers scores average on business quality (4.7 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$133.13Oct 9, 2026
Business qualityAverage
Next earningsDec 7, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Toll Brothers does

    Toll Brothers designs and builds luxury residential homes, collecting revenue directly from affluent home buyers across multiple U.S. markets.

  2. What it does best

    Toll Brothers dominates the luxury home sector with a gross margin of 24.1%, outperforming peers like Lennar at 8.8%. This edge stems from proprietary land positions and high-end brand equity that lower-tier builders cannot easily replicate.

  3. The main risk

    A sudden drop in high-end buyer demand threatens its volume, leaving capital tied up in luxury land parcels. Morgan Stanley recently bet against the stock, highlighting vulnerability in high-end housing markets.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margin stands at 14.2% with an FCF margin of 10.1%, supported by steady cost discipline. Scale does not rapidly expand margins due to high land and luxury build costs.

MoatFair

Operating in the bottom quartile for revenue growth and gross margin sector-percentiles, its brand lock-in among affluent buyers faces severe limits from broader housing market cycles.

GrowthSlow

Revenue grew 1.1% to $10.8B, showing a significant slowdown compared to its historical multi-year expansion pace.

Financial healthFair

Debt-to-equity sits at 0.3x with $1.3B in cash buffering operations, while free cash flow reached $1.1B. Balance-sheet stability is holding steady.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $109K outside pre-planned sales.

Our sealed record on TOL

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is TOL a good business?

Toll Brothers scores average on the Cluenex quality check (4.7 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health fair.

Are insiders buying TOL?

In the last 90 days of SEC Form 4 filings: 1 sold $109K outside pre-planned sales.

When does TOL report earnings?

Dec 7, 2026, after the close.

For members

See TOL today

  • Today's verdict on TOL, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Toll Brothers (TOL)”, https://cluenex.com/stocks/tol/, data as of Oct 10, 2026.