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.

What matters for quality investors.

• TOLL BROTHERS INC has demonstrated significant revenue growth over the past 5 years, with a 12.06% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• The ROIC excluding cash and goodwill of TOLL BROTHERS INC stands at 16.71%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• TOLL BROTHERS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.54, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a robust Profit Quality (5-year) ratio of 111.0%, TOLL BROTHERS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• TOLL BROTHERS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 18.44%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• TOLL BROTHERS INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall TOL gets a fundamental rating of 7 out of 10. We evaluated TOL against 67 industry peers in the Household Durables industry. TOL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TOL is valued quite cheap, while showing a decent growth score. This is a good combination! This makes TOL very considerable for value and quality investing!

For an up to date full fundamental analysis you can check the fundamental report of TOL

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

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.