Toll BrothersSTU:TLK +6.49%93 Net Margin % is 10.30% as of Apr. 2026, which is 3% above its 10-year median of 9.98. GuruFocus rates STU:TLK with a GF Score™ of 93/100 and a GF Value™ of €120.20 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 91 Homebuilding & Construction companies, Toll Brothers ranks better than 79.12% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Toll Brothers's Net Income for the
three
months ended in Apr. 2026 was €223 Mil. Toll Brothers's Revenue for the
three
months ended in Apr. 2026 was €2,164 Mil. Therefore, Toll Brothers's net margin for the quarter that ended in Apr. 2026 was 10.30%.
The historical rank and industry rank for Toll Brothers's Net Margin % or its related term are showing as below:
STU:TLK'
s Net Margin % Range Over the Past 10 Years
Min: 6.31 Med: 9.98 Max: 14.49
Current: 11.66
STU:TLK's Net Margin % is ranked better than 79.12% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 4.73
vs STU:TLK: 11.66
Toll Brothers (STU:TLK) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Toll Brothers Net Margin % Related Terms
Toll Brothers Net Margin % Historical Data
* Premium members only.
The historical data trend for Toll Brothers's Net Margin % 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.
STU:TLK vs NVR, IBP, TMHC: Net Margin % Comparison
For the Residential Construction subindustry, Toll Brothers's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's Net Margin % distribution charts can be found below:
* The bar in red indicates where Toll Brothers's Net Margin % falls into.
* 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.
Toll Brothers (STU:TLK) has a Net Margin % of 10.30% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on Toll Brothers and its competitors. This is near median its historical median of 9.98. Over the past decade, Toll Brothers' Net Margin % has ranged from 6.31 to 14.49. According to the industry distribution chart, Toll Brothers ranks #19 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 20.9%.
Is Toll Brothers' Net Margin % too high?
Toll Brothers' current Net Margin % of 10.30% is near median its 10-year median of 9.98. Over the past 10 years, this metric has ranged from a low of 6.31 to a high of 14.49. The Homebuilding & Construction industry median Net Margin % is 4.73. Toll Brothers' value of 10.30% is 117.8% above this industry median. Based on the distribution chart, Toll Brothers ranks #19 out of 91 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Toll Brothers has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toll Brothers' Net Margin % compare to NVR and IBP?
According to the Homebuilding & Construction industry distribution chart, Toll Brothers ranks #19 out of 91 companies for Net Margin %. This places Toll Brothers in the top 21% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.73. Toll Brothers' value of 10.30% is 117.8% above this benchmark. Historically, Toll Brothers' own Net Margin % has ranged from 6.31 to 14.49 over the past decade. While the company's 10-year median is 9.98 vs. the industry median of 4.73, Toll Brothers has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Homebuilding & Construction company?
The median Net Margin % among Homebuilding & Construction companies is 4.73, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Toll Brothers's current Net Margin % of 10.30% is 117.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Toll Brothers and its competitors. For the Homebuilding & Construction industry, the median Net Margin % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toll Brothers's current Net Margin % is 10.30%, which is near median its own 10-year median of 9.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toll Brothers stock overvalued right now?
Based on GuruFocus' analysis, Toll Brothers (STU:TLK) is currently considered Modestly Overvalued. The stock's GF Value™ is €120.20, compared to a current price of €141.20 — trading 17.5% above its estimated fair value. The current Net Margin % is 10.30%, which is near median its 10-year median of 9.98 and 117.8% above the Homebuilding & Construction industry median of 4.73. Toll Brothers' overall GF Score™ is 93/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Toll Brothers (STU:TLK), the current Net Margin % is 10.30% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Toll Brothers (STU:TLK) Overvalued in 2026?
Based on GuruFocus' analysis, Toll Brothers stock appears to be overvalued.
The current stock price of €141.20 is trading 17.5% above its estimated GF Value™ of €120.20.
GuruFocus considers Toll Brothers to be Modestly Overvalued.
Key valuation signals for STU:TLK:
Net Margin %: 10.30% (near median its 10-year median of 9.98)
GF Value™: €120.20 vs. price of €141.20 (17.5% above fair value)
Industry Position: 117.8% above the Homebuilding & Construction median (#19 of 91)
No single metric tells the full story. See the STU:TLK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in over 60 markets across 24 states and caters to move-up, active-adult, and second-homebuyers. Toll Brothers consistently ranks as a top 10 builder within the US according to total home closings. Traditional homebuilding operations represent most of the company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the US It has its headquarters in Horsham, Pennsylvania.
93GF Score
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