Avery Lipman is a Net Worth specialist who analyzes publicly-traded and closely-held companies with at least a $20 million market cap. Below, Mr. Lipman gives an in-depth review on this prominent home builder.
Toll Brothers building company has been designing, building, and selling luxury properties in the U.S. for over fifty years. With almost $7 billion in revenue in 2020 alone, Toll Brothers is a Fortune 500 company that ranks as one of the largest home builders in the U.S.
Founded in 1967 by brothers Robert and Bruce Toll, Avery Lipman explains that Toll Brothers focuses on the construction of luxury properties. This has allowed the company to steadily grow throughout the decades, becoming a top Fortune 500 company. This article will discuss how Toll Brothers builders grew into the formidable company it is today, including its acquisitions and current valuation.
History
Brothers Robert and Bruce Toll founded their company in 1967 in Pennsylvania. With backgrounds in law and accounting, the brothers built on the building experience of their father, Albert Toll. They came together with a dream to change a house into an exquisite home.
Avery Lipman explains that after raising over $40 million in a public offering, Toll Brothers began their journey, offering luxurious single-family townhouses, condos, rental apartments, and even student housing to the public.
By 1986, the Toll Brothers building company was listed on the New York Stock Exchange, boasting revenue of over $124 million.
In 1988, the company entered the mortgage industry, creating TBI Mortgage, which currently serves over 20 states.
The Toll brothers didn’t solely focus on profits – they also used their company’s influence for benevolence as they began hosting the annual Toll Brothers Gala in 1992 according to Avery Lipman Net Worth Specialist. This gala continues to raise funds for organizations like the American Cancer Society and the American Red Cross.
One year after the gala’s premier, Toll Brothers sold their 10,000th home. By that time, they had spread to Maryland, New Jersey, New York, Florida, and Virginia.
Since then, they have vastly expanded both west and south, building not only individual homes, but golf courses, active adult communities, and more.
Major Acquisitions
Avery Lipman says that the Toll Brothers building company is no novice when it comes to acquisitions. With plenty under their belt, these acquisitions have helped the company grow into what it is today.
When the Toll Brothers company entered the mortgage industry, it did so through the acquisition of Westminster Mortgage in Delaware in 1988.
Three years later, in 1991, it acquired Blue Bell Country Club, allowing it to enter the golf and resort market.
Its first builder acquisition occurred in 1995, with Goeffrey H. Edmunds ; Associates Inc. in Scottsdale. This allowed Toll Brothers to enter Arizona for business. Another acquisition was undergone to enter Las Vegas when Toll Brothers acquired Coleman Homes in 1998.
To launch Toll Brothers City Living division, Avery Lipman explains that the company went on to acquire The Manhattan Building Company in 2003.
In 2013, Toll Brothers underwent a major expansion into coastal California by acquiring Shapell Industries, one of its largest and most recent acquisitions to date.
Current Net Worth and Status
Toll Brothers has been named Builder of the Year by Professional Builder Magazine, national Builder of the Year by Builder magazine, and one of Fortune magazine’s World’s Most Admired Companies.
Avery Lipman notes that in Fortune magazine’s 2016 survey, Toll Brothers ranked amongst top companies such as Amazon, Apple, and Walt Disney as one of the top-quality producing companies in America. They were also named the #1 Home Builder Worldwide in Fortune magazine for the sixth time in 2020.
Toll Brothers has sold over 100,000 homes since its beginning and recently celebrated 30 years on the New York Stock Exchange. It has a market cap of roughly $8.7 billion with a 52-week range of $41.22 to $75.61. Even with the supply chain issues for lumber in 2021, Toll Brothers pushed forward and showed impressive increases in their stock’s total value.
Toll Brothers employs about 4,500 employees nationally and continues to be headquartered in Pennsylvania, where it was founded, reports Avery Lipman.
As of 2020, Toll Brothers reported revenue of $6.94 billion, with a net income of $446 million.
Conclusion
From humble family beginnings over five decades ago, Toll Brothers has grown to be one of the largest and most prestigious building companies in the U.S. Spanning across 24 states and counting, they construct residential and commercial properties that are both luxurious and unique.
It’s impressive to see how hard work through the years can pay off. Starting from $40 million in a public offering, the Toll Brothers company grew steadily and underwent a series of acquisitions, including Westminster Mortgage, Blue Bell Country Club, and Shapell Industries. The Toll Brothers building company according to Avery Lipman now has a net worth of $8.7 billion and growing.
