Analyzing the Quality Characteristics of TOLL BROTHERS INC (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

• The 5-year revenue growth of TOLL BROTHERS INC has been remarkable, with 6.95% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• TOLL BROTHERS INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 16.64% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a favorable Debt/Free Cash Flow Ratio of 2.35, 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.
• With a robust Profit Quality (5-year) ratio of 113.0%, 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 consistently achieved strong EBIT growth over the past 5 years, with a 17.02% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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.

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 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 would make TOL suitable 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.

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.