Roberts & Ryan hosted a highly interactive investor call with the management team of Toll Brothers. Lots of really good questions from participating asset managers that were answered with very thorough, and thoughtful responses.
Toll Brothers Panelists:
Marty Connor: CFO
Frederick Cooper: SVP Finance, International Development, & IR
Gregg Ziegler: SVP, Treasurer
Drew Petri: Senior Finance Associate
The company has been doing well – despite a rising interest rate environment – and has proven that they can perform in the toughest of times. They’re well known for the luxury homes they build and they’re diversifying their product mix. Their CFO, Marty Connor, made a great point during the call when he said that they’re looking to sell 10,000 homes in a market that needs millions of them. They’ll find the buyers that can afford their homes, which increased by an average $25,000 per home in the second quarter.
Their metrics all look good and their strong balance sheet gives them a lot of leverage. One of the investors asked a question about what the company will do with excess cash. His premise was that the stock is currently undervalued, spec properties are working out very well, and M&A could be attractive. Lots of good options for the Toll Brothers team to consider.
Potential Stock Catalyst: Two out of the three ratings agencies have Toll Brothers at Investment Grade. Marty says they’ve been working hard to get the third agency to jump on board. Keep your eyes peeled.
We would like to extend a sincere “Thank You” to the Toll Brothers management team and to all of the investors that joined us today. As a Service-Disabled Veteran Owned Broker Dealer, it’s meaningful for us to host events like this. We’re doing great things socially – which is only possible through the success of our business!