Exploring TOLL BROTHERS INC (NYSE:TOL)s quality characteristics.

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.

Highlighting Notable Quality Metrics of NYSE:TOL.

• 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 demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 15.2% 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 2.18, 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.
• TOLL BROTHERS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 113.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• TOLL BROTHERS INC has experienced impressive EBIT growth over the past 5 years, with 17.02% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• 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.

Fundamental Analysis Observations

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.

We assign a fundamental rating of 7 out of 10 to TOL. TOL was compared to 68 industry peers in the Household Durables industry. TOL scores excellent on profitability, 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 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.