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Here's How Much You'd Have If You Invested $1000 in Toll Brothers a Decade Ago
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Toll Brothers (TOL - Free Report) ten years ago? It may not have been easy to hold on to TOL for all that time, but if you did, how much would your investment be worth today?
Toll Brothers' Business In-Depth
With that in mind, let's take a look at Toll Brothers' main business drivers.
Based in Horsham, PA, Toll Brothers Inc. builds single-family detached and attached home communities; master planned luxury residential resort-style golf communities; and urban low, mid, and high-rise communities, principally on the land it develops and improves.
Notably, during fourth-quarter fiscal 2022 earnings call, the company concluded that City Living operations no longer meet the definition of an operating segment, primarily due to the change in structure and a shift in strategy for its operations.
Toll Brothers now operates in five geographical segments — North (accounted for 14.9% of fiscal 2023 sales), Mid-Atlantic (11.8%), South (22.1%), Mountain (26.6%) and Pacific (23.3%).
Since November 2018, the company started reporting land sale activities under the Land sales and other category (1.3%).
Toll Brothers is also building homes for rental apartment projects. Toll Brothers Apartment Living, Toll Brothers Realty Trust and Toll Brothers Campus Living are brands offered under this rental apartment project. These rental projects operate in lucrative markets like metro-Boston to metro-Washington, D.C. corridor and Atlanta.
At the end of the fiscal third quarter, Toll Brothers had more than $2.66 billion of total liquidity, comprising $893.4 million in cash and cash equivalents and $1.77 billion available under the revolver capacity. The revolving bank credit facility will not mature until February 2028. Also, total debt at the fiscal third-quarter end was $2.82 billion, down from $2.86 billion at the fiscal 2023 end. Debt to capital was 27.6% at the fiscal second-quarter end, down from 29.6% at the fiscal 2023-end.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Toll Brothers ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in September 2014 would be worth $4,048.05, or a 304.80% gain, as of September 2, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 181.94% and the price of gold went up 86.52% over the same time frame.
Analysts are forecasting more upside for TOL too.
Toll Brothers reported impressive third-quarter fiscal 2024 (ended Jul 31, 2024) results, with earnings and revenues surpassing the Zacks Consensus Estimate by 9.8% and 1.2%, respectively. Despite a year-over-year earnings decline, revenues increased on the back of solid deliveries. Its emphasis on affordable luxury communities, build-to-order model and land acquisition strategies bodes well. The lack of competition in the luxury housing market is a competitive advantage adding to the company’s growth. Owing to solid quarterly results and expectations for the fiscal fourth quarter, TOL raised its full-year guidance for all key home building metrics. Toll Brothers outperformed the industry in the past six-months. However, high rates and higher land and labor costs, are raising concern.
The stock has jumped 6.68% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2024; the consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Toll Brothers a Decade Ago
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Toll Brothers (TOL - Free Report) ten years ago? It may not have been easy to hold on to TOL for all that time, but if you did, how much would your investment be worth today?
Toll Brothers' Business In-Depth
With that in mind, let's take a look at Toll Brothers' main business drivers.
Based in Horsham, PA, Toll Brothers Inc. builds single-family detached and attached home communities; master planned luxury residential resort-style golf communities; and urban low, mid, and high-rise communities, principally on the land it develops and improves.
Notably, during fourth-quarter fiscal 2022 earnings call, the company concluded that City Living operations no longer meet the definition of an operating segment, primarily due to the change in structure and a shift in strategy for its operations.
Toll Brothers now operates in five geographical segments — North (accounted for 14.9% of fiscal 2023 sales), Mid-Atlantic (11.8%), South (22.1%), Mountain (26.6%) and Pacific (23.3%).
Since November 2018, the company started reporting land sale activities under the Land sales and other category (1.3%).
Toll Brothers is also building homes for rental apartment projects. Toll Brothers Apartment Living, Toll Brothers Realty Trust and Toll Brothers Campus Living are brands offered under this rental apartment project. These rental projects operate in lucrative markets like metro-Boston to metro-Washington, D.C. corridor and Atlanta.
At the end of the fiscal third quarter, Toll Brothers had more than $2.66 billion of total liquidity, comprising $893.4 million in cash and cash equivalents and $1.77 billion available under the revolver capacity. The revolving bank credit facility will not mature until February 2028. Also, total debt at the fiscal third-quarter end was $2.82 billion, down from $2.86 billion at the fiscal 2023 end. Debt to capital was 27.6% at the fiscal second-quarter end, down from 29.6% at the fiscal 2023-end.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Toll Brothers ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in September 2014 would be worth $4,048.05, or a 304.80% gain, as of September 2, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 181.94% and the price of gold went up 86.52% over the same time frame.
Analysts are forecasting more upside for TOL too.
Toll Brothers reported impressive third-quarter fiscal 2024 (ended Jul 31, 2024) results, with earnings and revenues surpassing the Zacks Consensus Estimate by 9.8% and 1.2%, respectively. Despite a year-over-year earnings decline, revenues increased on the back of solid deliveries. Its emphasis on affordable luxury communities, build-to-order model and land acquisition strategies bodes well. The lack of competition in the luxury housing market is a competitive advantage adding to the company’s growth. Owing to solid quarterly results and expectations for the fiscal fourth quarter, TOL raised its full-year guidance for all key home building metrics. Toll Brothers outperformed the industry in the past six-months. However, high rates and higher land and labor costs, are raising concern.
The stock has jumped 6.68% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2024; the consensus estimate has moved up as well.