Why TOLL BROTHERS INC (NYSE:TOL) Deserves Consideration as a Quality Investment.

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.

• TOLL BROTHERS INC has demonstrated significant revenue growth over the past 5 years, with a 12.06% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 16.71%, 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.
• With a favorable Debt/Free Cash Flow Ratio of 1.54, 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.
• TOLL BROTHERS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 111.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• TOLL BROTHERS INC has consistently achieved strong EBIT growth over the past 5 years, with a 18.44% 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 else is there to say on the fundamentals of NYSE:TOL?

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.

TOL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 68 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making TOL a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on TOL. These ratings could make TOL a good candidate for value and quality investing.

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

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

Keep in mind

This article should in no way be interpreted as advice in any way. 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.