Toll Brothers Inc.
TOL Consumer Cyclical Residential Construction
Toll Brothers Inc.’s revenue for fiscal 2025 (year ended October 2025) was $11.0 billion, up 1.11% from fiscal 2024. In the quarter to July 2026, revenue fell 9.72%, EPS fell 20.7%, free cash flow fell 36.3% and total debt fell 6.02%, each against the same quarter a year earlier. Dividend growth for ten consecutive years.
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Toll Brothers Inc. (TOL) Altman Z-score
Toll Brothers Inc.'s Altman Z-score for fiscal 2025 is 4.06, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 4.06 | (0.55) |
| FY2024 | 4.60 | 0.95 |
| FY2023 | 3.65 | 0.39 |
| FY2022 | 3.26 | 0.02 |
| FY2021 | 3.24 | 0.35 |
| FY2020 | 2.89 | (0.15) |
| FY2019 | 3.04 | (0.11) |
| FY2018 | 3.15 | (0.19) |
| FY2017 | 3.34 | 0.68 |
| FY2016 | 2.66 | (0.23) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.66 | — | 0.80 | |
| Retained earnings / total assets | 0.59 | — | 0.83 | |
| EBIT / total assets | 0.12 | — | 0.39 | |
| Market value of equity / total liabilities | 2.14 | — | 1.29 | |
| Sales / total assets | 0.76 | — | 0.76 | |
| Altman Z-score | Safe zone | 4.06 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 8.47 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| NVR NVR, Inc. compare | 13.8× |
| CVCO Cavco Industries, Inc. compare | 9.6× |
| SKY Champion Homes, Inc. compare | 7.1× |
| DHI D.R. Horton, Inc. compare | 6.4× |
| IBP Installed Building Products, Inc. compare | 6.3× |
| PHM PulteGroup, Inc. compare | 5.0× |
| LEN Lennar Corporation compare | 4.3× |
| LEN.B Lennar Corporation compare | 4.2× |
| TOL Toll Brothers Inc. | 4.1× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets