Homebuilding
All research in Homebuilding — 2 reports.
Toll Brothers is a U.S. luxury homebuilder, with an average delivered price of $1.009 million in FY2026 Q2, nearly twice the average new-home price in the United States. FY2026 delivery guidance has been raised to 10,400-10,700 homes and adjusted gross margin to about 26%; the headline 11.2x P/E looks inexpensive, but owner earnings yield is only about 7.3%, leaving an insufficient margin of safety for a mature cyclical. Research rating Hold: a good company at a fair price, best revisited near the ideal buy zone of $110-120.
NVR is a U.S. asset-light homebuilder that sells homes through regional brands such as Ryan Homes while supporting buyers with in-house mortgage services. Its ROIC is far above peers and its capital allocation discipline is strong, but the business remains cyclical, rate-sensitive, and currently priced with a meaningful premium at about $6,105 per share. Research rating Watch: a high-quality compounder worth tracking, with an ideal buy range of $4,500 to $5,300.