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

• TOLL BROTHERS INC has demonstrated significant revenue growth over the past 5 years, with a 6.95% 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 16.08% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• TOLL BROTHERS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.34, 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.
• With a favorable Profit Quality (5-year) ratio of 113.0%, TOLL BROTHERS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• 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.
• The EBIT 5-year growth of TOLL BROTHERS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

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

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, TOL scores 6 out of 10 in our fundamental rating. TOL was compared to 66 industry peers in the Household Durables industry. TOL scores excellent on profitability, but there are some minor concerns on its financial health. 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 investing.

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

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

Keep in mind

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.