Why the quality investor may take a look at NYSE:TOL.

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 course 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 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.
• TOLL BROTHERS INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 16.71% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a Debt/Free Cash Flow Ratio of 1.54, TOLL BROTHERS INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• TOLL BROTHERS INC exhibits impressive Profit Quality (5-year) with a 111.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• 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 impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental analysis of NYSE:TOL

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, TOL scores 7 out of 10 in our fundamental rating. TOL was compared to 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make TOL a good candidate for value and quality investing.

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

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.