Toll brothers Stock analysis (TOL)
I personaly buyed 400 Dollar worth of TOL stock
Toll brothers is a wonderful shareholder oriented homebuilder in the USA. Toll brothers focus is on luxury homes and they are represented all over the USA. They build and design together with the customers or sell already finished villas, I believe that even if there might be fluctuations in demand and supply ratio, this business can still be profitable for a long time. In addition, I know some of you may not want to get into the homebuilder business because of the housing crash in 2008, I understand those concerns but Toll Brothers is in a good position here, they have a low debt balance sheet with a debt to ebit ratio of 1.5 and also carry a little bit money so in a crisis they can certainly take on more debt and survive the crisis. Another positive point is the track record of TOL the last 10 years they had an average revenue growth of 16%, earnings growth of 29%, and EPS growth of 34% even in good times this is really impressive. As we can see from the boosted EPS growth the company has to buy back a lot of shares and yes they do the team is extremely shareholder friendly and they buy back on average 5% of the shares in a year you have to remember such companies are normally traded at a P/E multiple of 20 or higher, TOL is at a P/E of 12, let's say TOL's EPS grows by 10% in the next three years and the multiple rises to 14 then we would already be at a double.
Sounds good for me
