Toll Brothers Inc. (NYSE:TOL) has a beta of 1.66, a 12-month trailing P/E ratio of 13.72. The stock’s Relative Strength Index (RSI) is 44.82, with weekly volatility at 4.83% and ATR at 2.19. The TOL stock’s 52-week price range has touched low of $13.28 and a $50.42 high. Its shares traded lower over the last trading session, losing -7.90% on 12/08/20. The shares fell to a low of $44.625 before closing at $45.32. Intraday shares traded counted 8.68 million, which was -371.91% lower than its 30-day average trading volume of 1.84M. TOL’s previous close was $49.21 while the outstanding shares total 126.72M.
Investors have identified the Residential Construction company Toll Brothers Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $5.65 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Toll Brothers Inc. (TOL) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 9.57 billion total, with 1.51 billion as their total liabilities.
TOL were able to record 66.59 million as free cash flow during the Q4 2020 quarter of the year, this saw their quarterly net cash flow reduce by -733.55 million. In cash movements, the company had a total of 141.59 million as operating cash flow.
Potential earnings growth for Toll Brothers Inc. (TOL)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q4 2020 quarter of the year, Toll Brothers Inc. recorded a total of 1.65 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -6.92% coming in sequential stages and their sales for the Q4 2020 quarter increasing by 6.2%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.34 billion trying to sell their products during the last quarter, with the result yielding a gross income of 310.29 million. This allows shareholders to hold on to 126.72M with the recently reported earning now reading 0.91 cents per share. This is a figure that compared to analyst’s prediction for their Q4 2020 (0.90 cents a share).
Having a look at the company’s valuation, the company is expected to record 4.74 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on TOL sounds very interesting.
Is the stock of TOL attractive?
In related news, Chief Financial Officer, Connor Martin P. sold 10,000 shares of the company’s stock in a transaction that recorded on Sep 25. The sale was performed at an average price of 48.03, for a total value of 480,326. As the sale deal closes, the EVP,Co-Chief Operating Officer, Parahus Robert now sold 3,500 shares of the company’s stock, valued at 169,050. Also, Chief Accounting Officer, Grubb Michael J. sold 1,250 shares of the company’s stock in a deal that was recorded on Sep 23. The shares were price at an average price of 48.17 per share, with a total market value of 60,210. Following this completion of acquisition, the Director, SHAPIRO PAUL E now holds 16,250 shares of the company’s stock, valued at 763,263. In the last 6 months, insiders have changed their ownership in shares of company stock by 7.50%.
6 out of 16 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on Toll Brothers Inc.. 4 analysts has assigned a Sell rating on the TOL stock. The 12-month mean consensus price target for the company’s shares has been set at $50.47.