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.

Key Considerations for Quality Investors.

• 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 exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 16.64% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• The Debt/Free Cash Flow Ratio of TOLL BROTHERS INC stands at 2.35, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• TOLL BROTHERS INC exhibits impressive Profit Quality (5-year) with a 113.0% 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 17.02%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

TOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 With these ratings, TOL could be worth investigating further 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.