KB Home vs Toll Brothers
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KIRA’s take AI analyst
I put KB Home and Toll Brothers side by side, using each one’s latest annual report. Here is what stands out:
- Toll Brothers is the larger business, with $11.0B of revenue in fiscal 2025 against $6.2B for KB Home, about 1.8 times as much.
- Toll Brothers grew revenue faster (1.1%, against −10.0%).
- Toll Brothers turned more of its sales into free cash flow (9.4% FCF margin, against 4.6%).
- Investors pay more for each dollar of KB Home’s earnings: a P/E of 13.1x against 11.3x for Toll Brothers.
Who comes out ahead
Of the 6 measures where higher (or lower) is clearly better, how many each company leads.
KB Home
KBH
1/6
Share count change
Toll Brothers
TOL
5/6
Revenue growth5-year growthNet marginFCF marginReturn on equity
Side by side
Best in the row
| Latest fiscal year | KBH FY25 | TOL FY25 |
|---|---|---|
| Size | ||
| Market cap | $2.9B | $13.3B |
| Revenue | $6.2B | $11.0B |
| Free cash flow | $287M | $1.0B |
| Net income | $429M | $1.3B |
| Growth | ||
| Revenue growth | −10.0% | 1.1% |
| 5-year growth | 8.3% | 9.2% |
| Share count change | −10.0% | −4.7% |
| Profitability | ||
| Gross margin | — | 25.1% |
| Operating margin | — | 15.7% |
| Net margin | 6.9% | 12.3% |
| FCF margin | 4.6% | 9.4% |
| Return on capital | — | 13.6% |
| Return on equity | 10.8% | 16.9% |
| Balance sheet | ||
| Net debt | $1.5B | $1.5B |
| Net debt / EBITDA | — | 0.9x |
| Dividends and buybacks | $610M | $748M |
| Valuation & quality | ||
| P/E | 13.1x | 11.3x |
| Piotroski F-score | — | — |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.