Why quality investors should have a look at TOLL BROTHERS INC (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.

Looking into the quality metrics of TOLL BROTHERS INC

• TOLL BROTHERS INC has shown strong performance in revenue growth over the past 5 years, with a 6.95% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 16.08%, 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 3.34, 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 superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental analysis of NYSE:TOL

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall TOL gets a fundamental rating of 6 out of 10. We evaluated TOL against 64 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 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.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.