Why the quality investor may take 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.

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.
• With a notable ROIC excluding cash and goodwill at 16.08%, TOLL BROTHERS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• TOLL BROTHERS INC maintains a healthy Debt/Free Cash Flow Ratio of 3.34, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• 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.
• The 5-year EBIT growth of TOLL BROTHERS INC has been remarkable, with 17.02% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• 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.

Fundamental analysis of NYSE:TOL

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing 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 has an excellent profitability rating, but there are some minor concerns on its financial health. TOL is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make TOL a good candidate for value investing.

Our latest full fundamental report of TOL contains the most current fundamental analsysis.

More quality stocks can be found 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.