Should you consider NYSE:TOL for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TOLL BROTHERS INC (NYSE:TOL) is suited for quality investing. Investors should of couse do their own research, but we spotted TOLL BROTHERS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:TOL highlighted

• TOLL BROTHERS INC has shown strong performance in revenue growth over the past 5 years, with a 12.06% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• TOLL BROTHERS INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 15.23% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• The Debt/Free Cash Flow Ratio of TOLL BROTHERS INC stands at 2.24, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• TOLL BROTHERS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 111.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 18.44%, TOLL BROTHERS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, TOLL BROTHERS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Zooming in on the fundamentals.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall TOL gets a fundamental rating of 6 out of 10. We evaluated TOL against 67 industry peers in the Household Durables industry. TOL has an excellent profitability rating, but there are some minor concerns on its financial health. TOL is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make TOL a good candidate for value investing.

Check the latest full fundamental report of TOL for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.