Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well …
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Competitive advantage assessment
Key strengths
ROIC Sustainably Above PeersROIC at 76.2th percentile exceeds peers and WACC, demonstrating superior capital allocation.
Margins Consistently Above PeersGross margin at 25.1% (top 19%) and operating margin at 15.7% (top 14%) indicate strong pricing power.
The dashed ring is the peer median. Defense scores are percentile ranks
against peers, so 50 is roughly the typical company in this group.
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Toll Brothers, Inc. ranks #4 of 22
scored companies in Residential Construction by moat score — the top 18%.
The widest moat in the group is PulteGroup, Inc. (PHM)
at 80/100.
Moat scores for companies ranked near TOL in Residential Construction
Pricing power is the ability to raise prices without losing volume.
Cost Advantage
Score 81
· 15% of the moat score
A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.
Customer Stickiness
Score 76
· 15% of the moat score
Stickiness is what makes revenue repeat without being re-won every year.
Capital Efficiency
Score 87
· 18% of the moat score
Capital efficiency asks what the company earns on the money tied up in the business.
Resilience
Score 50
· 17% of the moat score
Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.
Scale & Market Position
Score 92
· 15% of the moat score
Scale matters only when it converts into economics.
Toll Brothers, Inc. (TOL) scores 76 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #4 of 22 scored companies in Residential Construction, the top 18%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 21 companies in Residential Construction. Its strongest defense is Scale & Market Position (92/100) and its weakest is Resilience (50/100).
How does Toll Brothers, Inc. compare with other Residential Construction companies?
Toll Brothers, Inc. ranks #4 of 22 scored companies in Residential Construction by moat score. The widest moat in Residential Construction is PulteGroup, Inc. (PHM) at 80/100. The companies ranked closest are Green Brick Partners, Inc. (GRBK) at 78 just above it and Installed Building Products, In (IBP) at 70 just below it.
How is the moat score calculated?
Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 21 companies in Residential Construction. The defenses are then weighted to produce the overall score out of 100.
Why is Toll Brothers, Inc. scored with the Corporate Default template?
Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.
Which competitive defenses are measured for Toll Brothers, Inc.?
The Corporate Default template measures 6 defenses, and TOL scores: Pricing Power (71), Cost Advantage (81), Customer Stickiness (76), Capital Efficiency (87), Resilience (50), Scale & Market Position (92). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.
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