TORONTO-DOMINION BANK (TD.CA)
CA8911605092 - Common Stock
Taking everything into account, TD scores 2 out of 10 in our fundamental rating. TD was compared to 38 industry peers in the Banks industry. TD may be in some trouble as it scores bad on both profitability and health. TD is valued expensive and it does not seem to be growing. TD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TD was profitable.
In the past year TD has reported a negative cash flow from operations.
TD had positive earnings in each of the past 5 years.
Of the past 5 years TD 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TD (0.38%) is worse than 92.11% of its industry peers.
TD's Return On Equity of 6.78% is on the low side compared to the rest of the industry. TD is outperformed by 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 6.78% | ||
| ROIC | N/A |
ROA(3y)0.74%
ROA(5y)0.74%
ROE(3y)12.87%
ROE(5y)12.76%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TD has a worse Profit Margin (13.80%) than 92.11% of its industry peers.
In the last couple of years the Profit Margin of TD has declined.
TD does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 13.8% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-8.76%
PM growth 5Y-6.56%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
TD does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, TD has less shares outstanding
TD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TD is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 2.14 is on the high side and indicates that TD has dependencies on debt financing.
TD's Debt to Equity ratio of 2.14 is fine compared to the rest of the industry. TD outperforms 71.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.24%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
TD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.04%.
TD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.31% yearly.
Looking at the last year, TD shows a small growth in Revenue. The Revenue has grown by 3.58% in the last year.
Measured over the past years, TD shows a small growth in Revenue. The Revenue has been growing by 5.36% on average per year.
EPS 1Y (TTM)-5.04%
EPS 3Y14.23%
EPS 5Y4.31%
EPS Q2Q%3.02%
Revenue 1Y (TTM)3.58%
Revenue growth 3Y4.98%
Revenue growth 5Y5.36%
Sales Q2Q%8.94%
3.2 Future
TD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.90% yearly.
TD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.03% yearly.
EPS Next Y4.32%
EPS Next 2Y4.03%
EPS Next 3Y5.9%
EPS Next 5YN/A
Revenue Next Year8.61%
Revenue Next 2Y6.46%
Revenue Next 3Y6.43%
Revenue Next 5Y3.03%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.67 indicates a reasonable valuation of TD.
Based on the Price/Earnings ratio, TD is valued a bit more expensive than 78.95% of the companies in the same industry.
TD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.52.
The Price/Forward Earnings ratio is 9.78, which indicates a very decent valuation of TD.
Based on the Price/Forward Earnings ratio, TD is valued a bit more expensive than the industry average as 78.95% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of TD to the average of the S&P500 Index (21.99), we can say TD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.47
PEG (5Y)2.48
EPS Next 2Y4.03%
EPS Next 3Y5.9%
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 4.85%, which is a nice return.
TD's Dividend Yield is a higher than the industry average which is at 3.96.
TD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
5.2 History
The dividend of TD has a limited annual growth rate of 5.03%.
TD has been paying a dividend for at least 10 years, so it has a reliable track record.
TD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.03%
Div Incr Years13
Div Non Decr Years17
5.3 Sustainability
93.98% of the earnings are spent on dividend by TD. This is not a sustainable payout ratio.
TD's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP93.98%
EPS Next 2Y4.03%
EPS Next 3Y5.9%
TORONTO-DOMINION BANK
TSX:TD (9/13/2024, 7:00:00 PM)
84.54
+0.49 (+0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap147.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 9.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.47
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 6.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 13.8% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.04%
EPS 3Y14.23%
EPS 5Y
EPS Q2Q%
EPS Next Y4.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.58%
Revenue growth 3Y4.98%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y