TOLL BROTHERS INC (TOL)

Toll Brothers Inc designs, builds, and sells luxury homes, including single-family houses, townhomes, and high-rise apartments. Toll Brothers also helps buyers arrange financing for these homes. Recently, they’ve been expanding the types of homes they offer, including more affordable options, and they’re building more homes that are ready to move into quickly, rather than custom homes that are built to order.

Toll Brothers caters to different types of buyers, including first-time luxury home buyers, people looking to move up to a bigger home, empty-nesters looking to downsize, active adults, and people buying a second home. They also offer apartments for rent in cities and suburbs under the brand names Toll Brothers Apartment Living® and Toll Brothers Campus Living®. Additionally, they build high-end luxury condos in cities through partnerships with other companies, under the brand Toll Brother City Living®.

Chart

Financial Snapshot

Income Statement (*values displayed in millions)

How do they make money?

• Home Sales: the largest source of revenue for Toll Brothers comes from selling luxury homes. This includes single-family homes, townhomes, and high-rise condos. They build homes at various price points, focusing on high-end residential properties for different types of buyers, such as first-time luxury home buyers, move-up buyers, and empty-nesters.

• Land Development: Toll Brothers also makes money by purchasing, developing, and selling land for residential communities. They often buy large tracts of land, develop them into communities with homes, and then sell these homes to buyers.

• Financing: Toll Brothers helps buyers arrange financing of their homes, which may include mortgages and loans. This financing service adds another layer to their business, earning money from financing fees and arrangements.

• Rental Properties: Toll Brothers also earns revenue from renting and apartment units through its Toll Brothers Apartment Living® and Toll Brothers Campus Living® brands. These properties are targeted at urban and suburban renters, including students and working professionals.

• Condo Development: Through their Toll Brothers City Living® division, the company develops and sells high-end, high-rise luxury condos in urban areas. This is a niche market that targets wealthy buyers seeking premium living spaces in major cities.

Good Time to Buy?

At the time of writing, TOL is down 42% since it’s November 2024 52 Week High of 169.52/share.

FYI

If You Invested In TOL…