MEDIUMBuilt-inGeographic
California
“10-K Item 1A: 'A significant portion of our revenues and income from operations are concentrated in California'”
TOL · Concentration risk · 10-K extracted
Toll Brothers (TOL) concentration risks
Updated
The most significant concentration Toll Brothers discloses is California, classified MEDIUM by disclosed size. Below: the full set from the latest 10-K — verbatim quotes, filing references, and a synthesis of what these exposures mean together.
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Source: Toll Brothers’s SEC Form 10-K filed — view the filing on SEC EDGAR ↗
At a glance
Disclosed-size breakdown · 1 disclosed concentration
HIGH0
MEDIUM1
LOW0
Disclosed concentrations
Each card carries a disclosed-size chip (HIGH / MEDIUM / LOW — how large the exposure is as a share of revenue, not how dangerous it is) and a nature tag: Built-in(the company’s own model, geography, or products) or Outside party (an external customer, supplier, or distributor it relies on).
TrendMatrix Research · concentration synthesis
What these concentrations mean together
updated 2026-06-24The company's disclosed concentration profile rests on a single geographic exposure: a significant portion of revenues and income from operations are concentrated in California. This is a medium-share, structural concentration reflecting where a meaningful segment of the company's homebuilding communities, land holdings, and buyer demand are situated. The structural character is appropriate — geographic concentration in homebuilding reflects years of land acquisition, entitlement processes, and community development cycles that are not easily relocated; it is an embedded feature of the company's asset base rather than a single customer relationship. California's construction and real estate markets carry specific sensitivities that make this geographic tilt worth monitoring: permit and entitlement timelines are among the longest and most complex of any state, environmental regulatory requirements add cost and schedule risk, property tax reassessments affect buyer affordability calculations, and the state's elevated price points tie demand to high-income buyers who are more sensitive to interest rate moves on large mortgages. A meaningful downturn in California employment, home prices, or affordability would affect the concentrated portion of the revenue and earnings base more acutely than a national homebuilder with a more diversified geographic footprint. No customer, supplier, or counterparty concentrations are disclosed beyond this state-level geographic tilt. The profile is therefore relatively uncomplicated: the key variables to monitor are California-specific housing demand, permit throughput, and affordability conditions, alongside the broader interest rate environment that governs buyer qualification in the premium price segments where the company primarily operates.
For the engine’s reasoning on TOL’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.
Industry peers · Residential Construction
Peer concentration profile
| Symbol | Name | HIGH | MEDIUM | LOW | Total |
|---|---|---|---|---|---|
| CVCO | Cavco Industries, Inc. | 3 | 2 | 0 | 5 |
| KBH | KB Home | 2 | 2 | 0 | 4 |
| DHI | D.R. Horton, Inc. | 2 | 0 | 0 | 2 |
| IBP | Installed Building Products, In | 1 | 1 | 0 | 2 |
| GRBK | Green Brick Partners, Inc. | 0 | 1 | 0 | 1 |
| TOL● | Toll Brothers, Inc. | 0 | 1 | 0 | 1 |
Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.