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Exploring NYSE:TOL's quality characteristics.

By Mill Chart

Last update: May 14, 2024

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 demonstrated significant revenue growth over the past 5 years, with a 6.95% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a robust ROIC excluding cash and goodwill at 15.2%, 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.
  • TOLL BROTHERS INC maintains a healthy Debt/Free Cash Flow Ratio of 2.18, 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.
  • The Profit Quality (5-year) of TOLL BROTHERS INC stands at 113.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • 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 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 Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall TOL gets a fundamental rating of 7 out of 10. We evaluated TOL against 67 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 is valued quite cheap, while showing a decent growth score. This is a good combination! This makes TOL very considerable for value investing!

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

More ideas for quality investing can be found on ChartMill 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.

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TOLL BROTHERS INC

NYSE:TOL (5/30/2024, 8:35:50 AM)

119.918

+1.42 (+1.2%)

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This article explores why quality investors may have a look at TOLL BROTHERS INC (NYSE:TOL)

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