Toll Brothers vs Builders FirstSource
This page compares Toll Brothers and Builders FirstSource, outlining their business models, financial performance, and market context. It presents neutral information to help readers understand how the two companies operate, perform, and position themselves within the construction and homebuilding sectors. Educational content, not financial advice.
This page compares Toll Brothers and Builders FirstSource, outlining their business models, financial performance, and market context. It presents neutral information to help readers understand how th...
Which Baskets Do They Appear In?
Positioning For A Softer Labor Market
The recent U.S. jobs report showed significantly slower growth than anticipated, signaling a potential cooling of the economy. This could prompt the Federal Reserve to lower interest rates, creating a favorable environment for interest-rate-sensitive industries and companies offering efficiency solutions.
Published: August 2, 2025
Explore BasketThe Umansky Effect: Riding the Luxury Housing Wave
This curated collection focuses on companies set to benefit from the continued strength in luxury real estate. Based on insights from The Agency CEO Mauricio Umansky, these stocks span premium homebuilders, high-end material suppliers, and luxury furnishing brands positioned to thrive in a resilient high-end housing market.
Published: July 1, 2025
Explore BasketWhich Baskets Do They Appear In?
Positioning For A Softer Labor Market
The recent U.S. jobs report showed significantly slower growth than anticipated, signaling a potential cooling of the economy. This could prompt the Federal Reserve to lower interest rates, creating a favorable environment for interest-rate-sensitive industries and companies offering efficiency solutions.
Published: August 2, 2025
Explore BasketThe Umansky Effect: Riding the Luxury Housing Wave
This curated collection focuses on companies set to benefit from the continued strength in luxury real estate. Based on insights from The Agency CEO Mauricio Umansky, these stocks span premium homebuilders, high-end material suppliers, and luxury furnishing brands positioned to thrive in a resilient high-end housing market.
Published: July 1, 2025
Explore BasketInvestment Analysis
Pros
- Toll Brothers is a leading luxury homebuilder in the US, operating across over 60 markets in 24 states, with a strong brand in affluent home segments.
- The company shows solid profitability with a return on equity around 17% and profit margins of approximately 12.6%, placing it in the top ten percent of its industry.
- Toll Brothers maintains strong financial health with a low debt-to-equity ratio of 0.36 and a high current ratio of 3.72, indicating liquidity and low financial risk.
Considerations
- Recent market sentiment is bearish with a fear and greed index showing fear, reflecting investor caution in the near term.
- Toll Brothers experienced past earnings growth at a rapid pace but future growth forecasts suggest a deceleration to more moderate levels.
- Its stock price has seen volatility with medium price fluctuations around 2.53%, and the valuation, though reasonable, has limited upside compared to some peers.
Pros
- Builders FirstSource has a strong market position as a leading supplier and manufacturer of building materials in the residential construction industry.
- The company posts solid profitability with a return on equity of about 24.61%, indicating efficient use of shareholder funds.
- Builders FirstSource benefits from higher revenue and earnings compared to some direct competitors and enjoys favourable media sentiment recently.
Considerations
- Builders FirstSource operates in the highly cyclical residential construction sector, which exposes it to economic downturn risks and housing market fluctuations.
- Its net margin of 4.74% is modest relative to some peers, reflecting possible pressure on profitability or higher operating costs.
- Despite growth prospects, Builders FirstSource's valuation metrics, such as price-to-earnings ratio, are higher than comparable competitors, suggesting less relative valuation appeal.
Why invest with Nemo?
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Comparisons
Toll Brothers vs Deckers
Toll Brothers vs Deckers
Toll Brothers vs BJ's Wholesale Club
Toll Brothers vs BJ's Wholesale Club: a comparison
Toll Brothers vs On
Toll Brothers vs On โ business models compared