TORONTO-DOMINION BANK (TD.CA) Stock Fundamental Analysis
TSX:TD - Toronto Stock Exchange - CA8911605092 - Common Stock - Currency: CAD
TD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 industry peers in the Banks industry. TD has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, TD is valued expensive at the moment. Finally TD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TD was profitable.
TD had a positive operating cash flow in the past year.
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
TD's Return On Assets of 0.40% is on the low side compared to the rest of the industry. TD is outperformed by 90.00% of its industry peers.
TD has a Return On Equity of 6.95%. This is amonst the worse of the industry: TD underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 6.95% | ||
| ROIC | N/A |
ROA(3y)0.6%
ROA(5y)0.66%
ROE(3y)10.54%
ROE(5y)11.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 14.37%, TD is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of TD has declined.
The Operating Margin and Gross Margin are not available for TD so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 14.37% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-23.85%
PM growth 5Y-12.17%
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.
TD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TD has been reduced compared to 5 years ago.
Compared to 1 year ago, TD has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of TD is 11.47, which is on the high side as it means it would take TD, 11.47 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TD (11.47) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.17 is on the high side and indicates that TD has dependencies on debt financing.
TD has a Debt to Equity ratio (2.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 11.47 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.55%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
TD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.90%.
The Earnings Per Share has been growing slightly by 3.11% on average over the past years.
Looking at the last year, TD shows a quite strong growth in Revenue. The Revenue has grown by 10.73% in the last year.
The Revenue has been growing slightly by 6.86% on average over the past years.
EPS 1Y (TTM)0.9%
EPS 3Y-0.47%
EPS 5Y3.11%
EPS Q2Q%1%
Revenue 1Y (TTM)10.73%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%2.44%
3.2 Future
The Earnings Per Share is expected to grow by 6.17% on average over the next years.
The Revenue is expected to grow by 4.13% on average over the next years.
EPS Next Y2.56%
EPS Next 2Y6.22%
EPS Next 3Y6.17%
EPS Next 5YN/A
Revenue Next Year7.26%
Revenue Next 2Y5.87%
Revenue Next 3Y5.15%
Revenue Next 5Y4.13%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 11.01, the valuation of TD can be described as very reasonable.
Based on the Price/Earnings ratio, TD is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of TD to the average of the S&P500 Index (28.79), we can say TD is valued rather cheaply.
TD is valuated reasonably with a Price/Forward Earnings ratio of 9.78.
Based on the Price/Forward Earnings ratio, TD is valued expensively inside the industry as 86.67% of the companies are valued cheaper.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, TD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TD is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.69 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.3
PEG (5Y)3.53
EPS Next 2Y6.22%
EPS Next 3Y6.17%
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 4.93%, which is a nice return.
Compared to an average industry Dividend Yield of 4.53, TD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, TD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
5.2 History
The dividend of TD is nicely growing with an annual growth rate of 7.39%!
TD has been paying a dividend for at least 10 years, so it has a reliable track record.
TD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.39%
Div Incr Years14
Div Non Decr Years18
5.3 Sustainability
87.13% of the earnings are spent on dividend by TD. This is not a sustainable payout ratio.
TD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP87.13%
EPS Next 2Y6.22%
EPS Next 3Y6.17%
TSX:TD (4/25/2025, 7:00:00 PM)
86.17
-0.03 (-0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.01%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap151.00B
Analysts75.83
Price Target91.67 (6.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
Yearly Dividend4.04
Dividend Growth(5Y)7.39%
DP87.13%
Div Incr Years14
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.04%
Min EPS beat(2)-8.09%
Max EPS beat(2)0%
EPS beat(4)2
Avg EPS beat(4)-1.2%
Min EPS beat(4)-8.09%
Max EPS beat(4)6.92%
EPS beat(8)3
Avg EPS beat(8)-2.87%
EPS beat(12)5
Avg EPS beat(12)-1.7%
EPS beat(16)7
Avg EPS beat(16)-0.38%
Revenue beat(2)1
Avg Revenue beat(2)7.25%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)15.62%
Revenue beat(4)3
Avg Revenue beat(4)6.6%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)15.62%
Revenue beat(8)6
Avg Revenue beat(8)4.8%
Revenue beat(12)8
Avg Revenue beat(12)4.89%
Revenue beat(16)11
Avg Revenue beat(16)3.74%
PT rev (1m)0.49%
PT rev (3m)7.94%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-5.4%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)-2.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 9.78 | ||
| P/S | 2.62 | ||
| P/FCF | 6.69 | ||
| P/OCF | 6.1 | ||
| P/B | 1.27 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.83
EY9.09%
EPS(NY)8.81
Fwd EY10.23%
FCF(TTM)12.88
FCFY14.95%
OCF(TTM)14.14
OCFY16.4%
SpS32.85
BVpS67.91
TBVpS54.93
PEG (NY)4.3
PEG (5Y)3.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 6.95% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 14.37% | ||
| GM | N/A | ||
| FCFM | 39.21% |
ROA(3y)0.6%
ROA(5y)0.66%
ROE(3y)10.54%
ROE(5y)11.57%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-23.85%
PM growth 5Y-12.17%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 11.47 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 106.94% | ||
| Cap/Sales | 3.83% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 272.78% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC15.55%
ROIC/WACCN/A
Cap/Depr(3y)95.41%
Cap/Depr(5y)84.59%
Cap/Sales(3y)3.47%
Cap/Sales(5y)3.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.9%
EPS 3Y-0.47%
EPS 5Y3.11%
EPS Q2Q%1%
EPS Next Y2.56%
EPS Next 2Y6.22%
EPS Next 3Y6.17%
EPS Next 5YN/A
Revenue 1Y (TTM)10.73%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%2.44%
Revenue Next Year7.26%
Revenue Next 2Y5.87%
Revenue Next 3Y5.15%
Revenue Next 5Y4.13%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y64.29%
FCF growth 3Y2.5%
FCF growth 5YN/A
OCF growth 1Y62.32%
OCF growth 3Y3.1%
OCF growth 5Y189.32%