Canadian Halal Investor.

NYSE Shariah screener · October 2026

Is Toll Brothers, Inc. (TOL) Halal?

PASS

Toll Brothers, Inc. · NYSE: TOL · Consumer Discretionary

The short answer

Toll Brothers passes all three Shariah gates: it builds luxury homes (not an interest-based lender), carries about $2.77B of interest-bearing debt (22.0% of its ~$12.55 billion market cap), and interest income of about 0.27% of revenue is under the 5% ceiling.

Gate 1 — Business activity: PASS

Gate 1 — business activity: PASS. Toll Brothers, Inc., per its FY2025 Form 10-K (fiscal year ended October 31, 2025, filed December 19, 2025), is 'the nation's leading builder of luxury homes,' founded in 1967 and publicly listed on the New York Stock Exchange as TOL since 1986. It designs, builds, markets, sells, and arranges financing for luxury residential single-family, attached, and urban high-rise communities, operating in 24 states and the District of Columbia. In fiscal 2025 it delivered 11,292 homes from 556 communities and owned or controlled about 76,100 home sites at year-end.

It is not an interest-based lender and is not involved in tobacco, gambling, pork, or conventional banking or insurance. For transparency, the 10-K notes it operates its own mortgage, title, land development, insurance, smart home technology, and landscaping subsidiaries — ancillary home-buying services, not the core business (income from ancillary businesses was $15.9 million of $10,966.7 million fiscal 2025 revenue). The company announced in September 2025 its intention to exit the multifamily apartment development business. The business passes gate 1.

Gate 2 — Debt and cash: PASS

Gate 2 — interest-bearing debt: PASS (22.0%, ceiling 33%). Per Toll Brothers' Q3 fiscal 2026 condensed consolidated balance sheet (July 31, 2026, Form 10-Q), interest-bearing debt totals about $2,765.5 million: loans payable of $894,142 thousand, senior notes of $1,742,471 thousand, and the mortgage company loan facility of $128,863 thousand (the same components the company itself totals as 'total debt,' which was $2,902,167 thousand at October 31, 2025).

$2,765.5 million against a market capitalization of about $12.55 billion (MarketBeat, October 2, 2026; Finnhub XNYS live quote) is about 22.0%, under the 33% ceiling. Cash and cash equivalents of $1,057,889 thousand at July 31, 2026 represent about 8.4% of market capitalization.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS (0.27%, ceiling 5%). Toll Brothers' FY2025 Form 10-K separately discloses interest income in the 'Other income – net' note: $29,479 thousand of interest income against total revenue of $10,966,723 thousand is about 0.27% — under the 5% ceiling (fiscal 2024: $38,497 thousand; fiscal 2023: $35,133 thousand, a stable declining trend).

For transparency: the 10-K notes state that interest income on mortgage loans held for sale from the company's mortgage subsidiary is included in this figure, and Zoya's page cites a broader $71.9 million (0.66%) reading — both readings are well under the 5% ceiling. The most recent annual figure (0.27%) is used for this gate.

Key figures used

Frequently asked questions

What does Toll Brothers do?

Toll Brothers, Inc. (NYSE: TOL) is the largest US builder of luxury homes, founded in 1967 and public since 1986. Per its FY2025 Form 10-K (fiscal year ended October 31, 2025, filed December 19, 2025), it designs, builds, markets, and sells luxury residential communities in 24 states and the District of Columbia, delivering 11,292 homes from 556 communities in fiscal 2025, and owned or controlled about 76,100 home sites at year-end. It also operates its own architectural, engineering, mortgage, title, land development, insurance, smart home technology, and landscaping subsidiaries, and was exiting its multifamily apartment development business (sale to Kennedy Wilson announced September 2025).

Is Toll Brothers' business Shariah compliant?

Toll Brothers builds and sells luxury homes - it is not an interest-based lender. It is not involved in tobacco, gambling, pork, or conventional banking or insurance. For transparency: it operates a mortgage subsidiary (Toll Brothers Mortgage Company) that originates residential mortgages held for sale, plus title and insurance agency subsidiaries - these are ancillary home-buying services, not the core business (income from ancillary businesses was $15.9 million of $10,966.7 million fiscal 2025 revenue, about 0.1%). Assessed on the filed numbers, the business passes this screener's first gate.

How much interest-bearing debt does Toll Brothers have?

Toll Brothers' Q3 fiscal 2026 Form 10-Q (July 31, 2026) reports loans payable of $894,142 thousand, senior notes of $1,742,471 thousand, and a mortgage company loan facility of $128,863 thousand - total interest-bearing debt of about $2,765.5 million. Against a market capitalization of about $12.55 billion (MarketBeat, October 2, 2026), that is about 22.0% - under the 33% ceiling. Cash and cash equivalents of $1,057,889 thousand at July 31, 2026 represent about 8.4% of market capitalization.

How much interest income does Toll Brothers earn?

Toll Brothers' FY2025 Form 10-K separately discloses interest income in the 'Other income - net' note: interest income of $29,479 thousand against total revenue of $10,966,723 thousand is about 0.27% - under the 5% non-compliant income ceiling (fiscal 2024: $38,497 thousand; fiscal 2023: $35,133 thousand). For transparency: the note states that interest income on mortgage loans held for sale from its mortgage subsidiary is included in this figure, and Zoya's page cites a broader $71.9 million (0.66%) reading - both well under 5%.

What do third-party Shariah screeners say about Toll Brothers?

Zoya publishes a TOL page citing fiscal 2025 figures under its AAOIFI methodology and its September 2026 update indicates Shariah-compliant, though the page text rendered inconsistently in a text fetch so its current rating could not be fully verified from public sources. I could not verify a Musaffa rating page for TOL or a ShariaPortfolio rating from public sources. Third-party screeners apply different assumptions and update on different schedules, and their results can change when new financial statements are published - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).