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Toll Brothers Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Toll Brothers has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Toll Brothers's Piotroski F-Score or its related term are showing as below:

TOL' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 9
Current: 8

During the past 13 years, the highest Piotroski F-Score of Toll Brothers was 9. The lowest was 1. And the median was 5.


Toll Brothers Piotroski F-Score Historical Data

The historical data trend for Toll Brothers's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Toll Brothers Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.00 7.00 4.00 4.00 8.00

Toll Brothers Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 8.00 8.00 8.00

Competitive Comparison

For the Residential Construction subindustry, Toll Brothers's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Toll Brothers Piotroski F-Score Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Toll Brothers's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Apr22) TTM:Last Year (Apr21) TTM:
Net Income was 234.932 + 374.33 + 151.904 + 220.593 = $982 Mil.
Cash Flow from Operations was 421.161 + 854.699 + -280.698 + 75.726 = $1,071 Mil.
Revenue was 2255.481 + 3041.38 + 1791.081 + 2277.541 = $9,365 Mil.
Gross Profit was 510.648 + 698.863 + 401.937 + 525.295 = $2,137 Mil.
Average Total Assets from the begining of this year (Apr21)
to the end of this year (Apr22) was
(10975.019 + 11264.059 + 11537.85 + 11283.879 + 11544.611) / 5 = $11321.0836 Mil.
Total Assets at the begining of this year (Apr21) was $10,975 Mil.
Long-Term Debt & Capital Lease Obligation was $3,428 Mil.
Total Current Assets was $9,994 Mil.
Total Current Liabilities was $2,456 Mil.
Net Income was 114.761 + 199.317 + 96.499 + 127.866 = $538 Mil.

Revenue was 1651.489 + 2545.667 + 1563.376 + 1930.124 = $7,691 Mil.
Gross Profit was 343.122 + 506.877 + 329.849 + 403.54 = $1,583 Mil.
Average Total Assets from the begining of last year (Apr20)
to the end of last year (Apr21) was
(10810.811 + 10537.431 + 11065.733 + 10863.993 + 10975.019) / 5 = $10850.5974 Mil.
Total Assets at the begining of last year (Apr20) was $10,811 Mil.
Long-Term Debt & Capital Lease Obligation was $3,705 Mil.
Total Current Assets was $9,529 Mil.
Total Current Liabilities was $2,070 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Toll Brothers's current Net Income (TTM) was 982. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Toll Brothers's current Cash Flow from Operations (TTM) was 1,071. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Apr21)
=981.759/10975.019
=0.08945397

ROA (Last Year)=Net Income/Total Assets (Apr20)
=538.443/10810.811
=0.04980598

Toll Brothers's return on assets of this year was 0.08945397. Toll Brothers's return on assets of last year was 0.04980598. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Toll Brothers's current Net Income (TTM) was 982. Toll Brothers's current Cash Flow from Operations (TTM) was 1,071. ==> 1,071 > 982 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Apr22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Apr21 to Apr22
=3427.589/11321.0836
=0.30276157

Gearing (Last Year: Apr21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Apr20 to Apr21
=3704.675/10850.5974
=0.3414259

Toll Brothers's gearing of this year was 0.30276157. Toll Brothers's gearing of last year was 0.3414259. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Apr22)=Total Current Assets/Total Current Liabilities
=9994.477/2455.829
=4.06969581

Current Ratio (Last Year: Apr21)=Total Current Assets/Total Current Liabilities
=9529.231/2070.457
=4.60247713

Toll Brothers's current ratio of this year was 4.06969581. Toll Brothers's current ratio of last year was 4.60247713. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Toll Brothers's number of shares in issue this year was 118.925. Toll Brothers's number of shares in issue last year was 125.999. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2136.743/9365.483
=0.22815086

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1583.388/7690.656
=0.20588465

Toll Brothers's gross margin of this year was 0.22815086. Toll Brothers's gross margin of last year was 0.20588465. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Apr21)
=9365.483/10975.019
=0.85334549

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Apr20)
=7690.656/10810.811
=0.71138567

Toll Brothers's asset turnover of this year was 0.85334549. Toll Brothers's asset turnover of last year was 0.71138567. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Toll Brothers has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Toll Brothers  (NYSE:TOL) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Toll Brothers Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Toll Brothers's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Toll Brothers Business Description

Toll Brothers logo
Traded in Other Exchanges
Address
1140 Virginia Drive, Fort Washington, PA, USA, 19034
Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in 60 markets across 24 states and caters to move-up, active-adult, and second-home buyers. Traditional homebuilding operations represent most of company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the U.S. It has its headquarters in Horsham, Pennsylvania.
Executives
Kan Derek T. director TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Stowell Scott D director
East Stephen F. director TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Parahus Robert officer: EVP,Co-Chief Operating Officer TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Boyd James W. officer: EVP,Co-Chief Operating Officer TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Mcdonald John K. officer: SVP, General Counsel TOLL BROTHERS, INC. 250 GIBRALTAR ROAD HORSHAM PA 19044
Grimes Karen H. director TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Pritchett Wendell E. director TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Grubb Michael J. officer: Chief Accounting Officer TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Mclean John A director TOLL BROTHERS, INC. 1140 GIBRALTAR ROAD FORT WASHINGTON PA 19034
Hartman Richard T. officer: Chief Operating Officer 250 GIBRALTAR ROAD HORSHAM PA 19044
Connor Martin P. officer: Chief Financial Officer 250 GIBRALTAR ROAD HORSHAM PA 19044
Yearley Douglas C. Jr. officer: Executive Vice President 250 GIBRALTAR ROAD HORSHAM PA 19044
Garvey Christine director 14100 E 35TH PLACE AURORA CO 80011
Boehne Edward G director 313 DEVON STATE ST DEVON PA 19333

Toll Brothers Headlines

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