📊 AI Stock Rating — Summary

For the quarter ending January 31, 2026, TOL reported revenue of $2.15 billion with a net income of $210.9 million and an EPS of $2.20. The company achieved a free cash flow of $772.2 million and maintained a steady dividend yield with payments of $0.25 per quarter. Year-over-year growth is robust, with continued strength in revenue and healthy profitability metrics. TOL's operating margin showcases efficiency against costs. Free cash flow is substantial, underscoring strong liquidity and the company’s ability to return value via dividends and share repurchases. The balance sheet appears resilient with a net debt of $1.52 billion and a substantial equity base of $8.42 billion, indicating financial stability. Analysts have a target consensus of $156.86 per share, suggesting potential upside from current prices. Overall, TOL presents a balanced profile of growth, profitability, and strategic financial management, delivering consistent shareholder returns through dividends and buybacks. The stock's valuation reflects strong industry confidence, supported by solid operating fundamentals.

AI Score Breakdown

Revenue Growth — Score: 8/10

Revenue demonstrated healthy growth, underpinned by strong market demand and effective pricing strategies.

Profitability — Score: 8/10

Operating margins are strong with a stable EPS, reflecting efficient cost management and robust earnings leverage.

Cash Flow Quality — Score: 9/10

Free cash flow remains substantial with continuous dividends and buybacks, indicating excellent cash management.

Leverage & Balance Sheet — Score: 7/10

Debt levels are manageable relative to equity, indicating solid financial resilience and prudent leverage.

Shareholder Returns — Score: 8/10

Shareholder value is well-served through consistent dividends and significant share repurchase activities.

Analyst Sentiment & Valuation — Score: 7/10

The stock is priced with an optimistic outlook, supported by positive analyst sentiment and a high target consensus.

⚠ AI-generated — informational only, not financial advice.