Reasonable growth and debt and a high ROIC for 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.

Looking into the quality metrics of TOLL BROTHERS INC

• 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 17.02%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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.

Zooming in on the fundamentals.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple 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. TOL scores excellent on profitability, but there are some minor concerns on its financial health. TOL may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make TOL suitable for value investing!

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

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

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.