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

In this article we will dive into TOLL BROTHERS INC (NYSE:TOL) as a possible candidate for quality investing. Investors should always do their own research, but we noticed TOLL BROTHERS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Exploring Why NYSE:TOL Holds Appeal for Quality Investors.

• Over the past 5 years, TOLL BROTHERS INC has experienced impressive revenue growth, with 6.95% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 15.61%, TOLL BROTHERS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a favorable Debt/Free Cash Flow Ratio of 2.4, TOLL BROTHERS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• The Profit Quality (5-year) of TOLL BROTHERS INC stands at 113.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• TOLL BROTHERS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 17.02%. 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.

What is the full fundamental picture of NYSE:TOL telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall TOL gets a fundamental rating of 6 out of 10. We evaluated TOL against 68 industry peers in the Household Durables industry. TOL scores excellent on profitability, but there are some minor concerns on its financial health. TOL may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make TOL a good candidate for value investing.

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

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.