Toll Brothers

2017 Performance Final Grade: 82.38/100
2016 Final Grade: 67.7/100
A/C+

36.19/40

Change YoY
Net debt-to-capital 37.5% -300bps
Pretax home building income
(in millions)
$678 51.9%
Total SG&A/Total revenue 10.3% --
Total SG&A
(in millions)
$628 14%
Return on invested capital 7.5% 260bps
Return on equity 13.6% 460bps
Total shareholder return 55.3% --
EPS $3.65 59.8%

12.38/20

Change YoY
Community count 295 -26
Share of lots optioned to total controlled 35.2% 20%

16.67/20

Change YoY
Home building gross margins 21.5% 220bps
Sales per month to break even
(per community)
0.96 --
Revenue per employee
(in millions)
$1.3 9.8%
Change YoY
Closings 7,384 18.8%
Sales velocity
(per community per month)
2.4 31.9%
Unit backlog 6,250 21.5%


Total revenue (in millions):$6,069
HB revenue (in millions): $6,069
Debt per share: $21.93
Equity per basic share: $28.00
HB pretax margin: 11.2%
Backlog value (in millions): $5,576.5
Inventory (in millions):$7,713.8
Lot supply (in years): 6.7

Toll Brothers (NYSE: TOL) saw results from its shift in product and multiyear geographic expansion in 2017, says CEO Doug Yearley. “Acquisitions of builders in Seattle in FY 2011, California in FY 2014, and Boise in FY 2017, as well as quality land purchases across all our western markets, have led to significant growth. ... We are expanding our active adult product line nationally, have introduced a new millennial-focused product line and continue to develop our Toll Brothers City Living and Apartment Living divisions.”