Toll Brothers Stock Fair Value Calculation – Toll Brothers and First Huntingdon Finance Secure $1.905 Billion Credit Line Through 2023.
February 20, 2023
Trending News ☀️
Toll Brothers ($NYSE:TOL) and First Huntingdon Finance have secured a new $1.905 billion credit line, replacing their existing $1.45 billion line which was set to expire in October of 2020. The new credit line is expected to provide more flexibility for Toll Brothers and First Huntingdon Finance, allowing them to pursue new strategies and actions that could provide long-term economic benefits. The longer-term financing option offered by the new credit line could also help Toll Brothers and First Huntingdon Finance to take on larger and more ambitious projects, further enabling them to expand and diversify their operations.
This could create greater value for shareholders and provide job opportunities for workers in the communities in which Toll Brothers and First Huntingdon Finance operate. This new credit line will allow them to further explore new investments, expand their workforce, and take on more ambitious projects over the coming years.
Market Price
On Thursday, Toll Brothers, a homebuilder and real estate development company, made headlines due to a deal it had made with First Huntingdon Finance concerning a $1.905 billion credit line for the upcoming three years. Although the news of the credit line was seen in a generally positive light, it has not managed to boost Toll Brothers’ stock values – the stock opened at $58.4, but closed the day at $58.9, representing a 1.0% decrease from its previous closing price of $59.5. This indicates that although the credit line had secured itself some attention, there may be other factors in play that have overshadowed the good news. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Toll Brothers. More…
| Total Revenues | Net Income | Net Margin |
| 10.28k | 1.29k | 12.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Toll Brothers. More…
| Operations | Investing | Financing |
| 608.07 | -4.24 | -1.01k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Toll Brothers. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.29k | 6.27k | 48.74 |
Key Ratios Snapshot
Some of the financial key ratios for Toll Brothers are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.5% | 30.4% | 14.7% |
| FCF Margin | ROE | ROA |
| 5.2% | 16.4% | 7.7% |
Analysis – Toll Brothers Stock Fair Value Calculation
At GoodWhale, we have performed an analysis of TOLL BROTHERS‘ wellbeing. The outcome of our analysis revealed that the intrinsic value of TOLL BROTHERS share is around $65.3, calculated by our proprietary Valuation Line. Currently, TOLL BROTHERS stock is traded at $58.9, indicating a fair price that is undervalued by 9.8%. This presents an opportunity for investors to take advantage of buying a good stock at a lower price than its true worth. More…
Peers
The company is headquartered in Horsham, Pennsylvania, and operates in 22 states. The company’s product offerings include single-family detached homes, attached homes, and condominiums. The company’s competitors include D.R. Horton Inc, Redbubble Ltd, and PulteGroup Inc.
– D.R. Horton Inc ($NYSE:DHI)
D.R. Horton Inc is a homebuilding company that was founded in 1978 and is headquartered in Fort Worth, Texas. As of 2022, the company had a market capitalization of 28.86 billion and a return on equity of 25.26%. The company operates in 26 states and 84 markets across the United States. D.R. Horton is the largest homebuilder in the United States by volume, with a market share of approximately 18%. The company builds single-family detached homes, townhomes, and condominiums.
– Redbubble Ltd ($ASX:RBL)
Redbubble Ltd has a market cap of 168.95M as of 2022 and a Return on Equity of -12.32%. The company is an online marketplace that allows artists to sell their artwork on a variety of products.
– PulteGroup Inc ($NYSE:PHM)
PulteGroup Inc is one of the largest homebuilders in the United States. The company has a market cap of 9.97 billion as of 2022 and a return on equity of 24.61%. The company builds and sells single-family homes, townhouses, condominiums, and apartments in the United States.
Summary
Investors in Toll Brothers have reason to cheer as the company recently announced that it has secured $1.905 billion in credit lines with First Huntingdon Finance through 2023. The credit line will provide Avenue for Toll Brothers to strengthen its capital structure and provide financial support post pandemic. This move is a sign of stability in the market and gives investors greater confidence in the company’s long-term prospects in the near future. Despite the overall mixed news, this investment could result in higher returns for investors in the company and is seen as a positive sign.
