Toll Brothers, Inc. (NYSE: TOL) Financial Performance Analysis

Core Insights - Toll Brothers, Inc. (TOL) reported mixed financial results, with challenges in earnings per share (EPS) and net income, but an increase in revenue and home sales revenue [1][3] Financial Performance - EPS fell to $4.58, missing the expected $4.87, and reflecting a slight decline from $4.63 in the previous year [4] - Net income decreased to $446.7 million from $475.4 million, and pre-tax income dropped to $593 million from $621.1 million [4] - Revenue reached approximately $3.42 billion, exceeding the forecast of $3.32 billion, driven by a 5% increase in home sales revenue to $3.41 billion from $3.26 billion [5] - The number of homes delivered increased slightly to 3,443 from 3,431 [5] Future Revenue Challenges - Net signed contract value decreased to $2.53 billion from $2.66 billion, with contracted homes dropping to 2,598 from 2,658 [6] - Backlog value at the end of the fourth quarter was $5.5 billion, down from $6.5 billion, indicating potential future revenue challenges [6] Market Valuation Metrics - TOL's price-to-earnings (P/E) ratio is approximately 9.88, with a price-to-sales ratio of about 1.21 [7] - The enterprise value to sales ratio is around 1.41, and the enterprise value to operating cash flow ratio is approximately 15.43 [7] - TOL maintains a low debt-to-equity ratio of 0.38 and a strong current ratio of about 4.14, indicating its capability to cover short-term liabilities [7]