Toll BrothersFRA:TLK +4.95%93 ROA % is 7.21% as of Apr. 2026, which is 4% below its 10-year median of 7.49. GuruFocus rates FRA:TLK with a GF Score™ of 93/100 and a GF Value™ of €119.00 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 96 Homebuilding & Construction companies, Toll Brothers ranks better than 87.5% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Toll Brothers's annualizedNet Income for the quarter that ended in Apr. 2026 was €891 Mil.
Toll Brothers's average Total Assets over the quarter that ended in Apr. 2026 was €12,354 Mil. Therefore, Toll Brothers's annualized ROA % for the quarter that ended in Apr. 2026 was 7.21%.
The historical rank and industry rank for Toll Brothers's ROA % or its related term are showing as below:
FRA:TLK'
s ROA % Range Over the Past 10 Years
Min: 4.03 Med: 7.49 Max: 12.14
Current: 8.93
During the past 13 years, Toll Brothers's highest ROA % was 12.14%. The lowest was 4.03%. And the median was 7.49%.
FRA:TLK's ROA % is ranked better than 87.5% of 96
companies
in the Homebuilding & Construction industry
Industry Median: 3.1
vs FRA:TLK: 8.93
Toll Brothers (FRA:TLK) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Toll Brothers ROA % Related Terms
Toll Brothers ROA % Historical Data
* Premium members only.
The historical data trend for Toll Brothers's ROA % 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.
For the Residential Construction subindustry, Toll Brothers's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's ROA % distribution charts can be found below:
* The bar in red indicates where Toll Brothers's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Toll Brothers (FRA:TLK) has a ROA % of 7.21% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Toll Brothers and its competitors. This is near median its historical median of 7.49. Over the past decade, Toll Brothers' ROA % has ranged from 4.03 to 12.14. According to the industry distribution chart, Toll Brothers ranks #12 out of 96 companies in the Homebuilding & Construction industry, placing it in the top 12.5%.
Is Toll Brothers' ROA % too high?
Toll Brothers' current ROA % of 7.21% is near median its 10-year median of 7.49. Over the past 10 years, this metric has ranged from a low of 4.03 to a high of 12.14. The Homebuilding & Construction industry median ROA % is 3.10. Toll Brothers' value of 7.21% is 132.6% above this industry median. Based on the distribution chart, Toll Brothers ranks #12 out of 96 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' ROA % compare to NVR and IBP?
According to the Homebuilding & Construction industry distribution chart, Toll Brothers ranks #12 out of 96 companies for ROA %. This places Toll Brothers in the top 13% of its industry — outperforming the majority of peers. The industry median ROA % is 3.10. Toll Brothers' value of 7.21% is 132.6% above this benchmark. Historically, Toll Brothers' own ROA % has ranged from 4.03 to 12.14 over the past decade. While the company's 10-year median is 7.49 vs. the industry median of 3.10, 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 ROA % for a Homebuilding & Construction company?
The median ROA % among Homebuilding & Construction companies is 3.10, based on 96 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Toll Brothers's current ROA % of 7.21% is 132.6% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Toll Brothers and its competitors. For the Homebuilding & Construction industry, the median ROA % is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toll Brothers's current ROA % is 7.21%, which is near median its own 10-year median of 7.49. 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 (FRA:TLK) is currently considered Modestly Overvalued. The stock's GF Value™ is €119.00, compared to a current price of €140.95 — trading 18.4% above its estimated fair value. The current ROA % is 7.21%, which is near median its 10-year median of 7.49 and 132.6% above the Homebuilding & Construction industry median of 3.10. Toll Brothers' overall GF Score™ is 93/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Toll Brothers (FRA:TLK), the current ROA % is 7.21% 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 (FRA:TLK) Overvalued in 2026?
Based on GuruFocus' analysis, Toll Brothers stock appears to be overvalued.
The current stock price of €140.95 is trading 18.4% above its estimated GF Value™ of €119.00.
GuruFocus considers Toll Brothers to be Modestly Overvalued.
Key valuation signals for FRA:TLK:
ROA %: 7.21% (near median its 10-year median of 7.49)
GF Value™: €119.00 vs. price of €140.95 (18.4% above fair value)
Industry Position: 132.6% above the Homebuilding & Construction median (#12 of 96)
No single metric tells the full story. See the FRA: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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