Should you consider NYSE:TOL for quality investing?

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.

A Deep Dive into TOLL BROTHERS INC's Quality Metrics.

• TOLL BROTHERS INC has achieved substantial revenue growth over the past 5 years, with a 6.95% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a robust ROIC excluding cash and goodwill at 16.64%, 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.
• TOLL BROTHERS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.35, 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.
• 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.
• With a robust 5-year EBIT growth of 17.02%, 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.
• TOLL BROTHERS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

A complete fundamental analysis of NYSE:TOL

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 7 out of 10. We evaluated TOL against 66 industry peers in the Household Durables industry. While TOL belongs to the best of the industry regarding profitability, 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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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.