Toll Brothers

Matt Vogel

Financial Statement Analysis

Test #2

The company that I chose for this assignment was Toll Brothers. Toll Brothers is an American based company that has been building distinctive luxury homes in beautiful communities since 1967. Although the company is still relatively new, it is already recognized as one of the housing leaders throughout the United States. In the rest of this paper, I will give a brief background of Toll Brothers, discuss why you should buy their stock, and give my opinion of why now is a good time to invest in this company.

To begin, I will provide a brief background of Toll Brothers and its history. As mentioned above, Toll Brothers was started in the 1960’s and became a public company in 1986.

“It is currently the nation’s leading builder of luxury homes and serves move-up, empty-nester, active-adult, and second-home customers in 19 states.” (http://finance.yahoo.com/news/) The quality, commitment, and superior design that Toll Brothers puts into each of their projects has allowed them to excel in the housing industry. As a result, the company has earned many prestigious awards. For example, in 2010 and 2011, “Toll Brothers was given a #1 ranking in Financial Soundness, Long-Term Investment, and Quality of Products/Services in Fortune magazine's annual World's Most Admired Companies survey in the home building category.” (http://www.tollbrothers.com/about) Additionally, Toll Brothers maintained their place at the top by receiving the Builder of the Year award in 2012, which is given out by Professional Builder magazine. (O’Toole) Overall, Toll Brothers is widely recognized as a leader in the luxury housing industry and has consistently maintained a high level of success.

Now that you have a general idea of Toll Brothers and their business, I will begin discussing why I think they would be a good company to invest in. First off, one of the best things that Toll Brothers offers an investor is stability. In an...