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 31 industry peers in the Banks industry. TD may be in some trouble as it scores bad on both profitability and health. TD is quite expensive at the moment. It does show a decent growth rate. TD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TD had positive earnings in the past year.
In the past year TD had a positive cash flow from operations.
Each year in the past 5 years TD has been profitable.
Of the past 5 years TD 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TD (0.40%) is worse than 90.32% of its industry peers.
TD's Return On Equity of 7.22% is on the low side compared to the rest of the industry. TD is outperformed by 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 7.22% | ||
| 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
The Profit Margin of TD (14.53%) is worse than 90.32% of its industry peers.
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) | 14.53% | ||
| 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.
The number of shares outstanding for TD has been reduced compared to 1 year ago.
Compared to 5 years ago, TD has less shares outstanding
The debt/assets ratio for TD is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of TD is 4.89, which is a neutral value as it means it would take TD, 4.89 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 4.89, TD belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
A Debt/Equity ratio of 2.24 is on the high side and indicates that TD has dependencies on debt financing.
TD has a Debt to Equity ratio (2.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.24 | ||
| Debt/FCF | 4.89 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.47%
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 -2.25%.
TD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.11% yearly.
Looking at the last year, TD shows a quite strong growth in Revenue. The Revenue has grown by 13.33% in the last year.
Measured over the past years, TD shows a small growth in Revenue. The Revenue has been growing by 6.86% on average per year.
EPS 1Y (TTM)-2.25%
EPS 3Y-0.47%
EPS 5Y3.11%
EPS Q2Q%-6.01%
Revenue 1Y (TTM)13.33%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%17.66%
3.2 Future
Based on estimates for the next years, TD will show a small growth in Earnings Per Share. The EPS will grow by 6.85% on average per year.
The Revenue is expected to grow by 2.93% on average over the next years.
EPS Next Y3.11%
EPS Next 2Y5.82%
EPS Next 3Y6.85%
EPS Next 5YN/A
Revenue Next Year5.68%
Revenue Next 2Y5.19%
Revenue Next 3Y4.6%
Revenue Next 5Y2.93%
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
TD is valuated reasonably with a Price/Earnings ratio of 10.90.
Compared to the rest of the industry, the Price/Earnings ratio of TD indicates a slightly more expensive valuation: TD is more expensive than 77.42% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. TD is valued rather cheaply when compared to this.
TD is valuated reasonably with a Price/Forward Earnings ratio of 10.57.
83.87% of the companies in the same industry are cheaper than TD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TD to the average of the S&P500 Index (22.68), we can say TD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 10.57 |
4.2 Price Multiples
TD's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TD is more expensive than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.82 | ||
| 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)3.51
PEG (5Y)3.5
EPS Next 2Y5.82%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 4.80%, which is a nice return.
TD's Dividend Yield is a higher than the industry average which is at 4.02.
TD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
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
86.10% of the earnings are spent on dividend by TD. This is not a sustainable payout ratio.
The dividend of TD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP86.1%
EPS Next 2Y5.82%
EPS Next 3Y6.85%
TSX:TD (2/21/2025, 7:00:00 PM)
85.12
-0.47 (-0.55%)
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 Cap149.00B
Analysts74.78
Price Target88.93 (4.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
Yearly Dividend4.04
Dividend Growth(5Y)7.39%
DP86.1%
Div Incr Years14
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.86%
Min EPS beat(2)-8.09%
Max EPS beat(2)-3.63%
EPS beat(4)2
Avg EPS beat(4)-0.56%
Min EPS beat(4)-8.09%
Max EPS beat(4)6.92%
EPS beat(8)2
Avg EPS beat(8)-3.06%
EPS beat(12)4
Avg EPS beat(12)-1.79%
EPS beat(16)7
Avg EPS beat(16)0.83%
Revenue beat(2)2
Avg Revenue beat(2)10.53%
Min Revenue beat(2)5.43%
Max Revenue beat(2)15.62%
Revenue beat(4)4
Avg Revenue beat(4)8.36%
Min Revenue beat(4)5.43%
Max Revenue beat(4)15.62%
Revenue beat(8)6
Avg Revenue beat(8)4.42%
Revenue beat(12)9
Avg Revenue beat(12)5.06%
Revenue beat(16)12
Avg Revenue beat(16)4.07%
PT rev (1m)4.71%
PT rev (3m)3.6%
EPS NQ rev (1m)-1.43%
EPS NQ rev (3m)-5.8%
EPS NY rev (1m)-2.14%
EPS NY rev (3m)-3.22%
Revenue NQ rev (1m)1.96%
Revenue NQ rev (3m)-3.17%
Revenue NY rev (1m)2.55%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 10.57 | ||
| P/S | 2.6 | ||
| P/FCF | 2.82 | ||
| P/OCF | 2.71 | ||
| P/B | 1.29 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.81
EY9.18%
EPS(NY)8.05
Fwd EY9.46%
FCF(TTM)30.14
FCFY35.41%
OCF(TTM)31.38
OCFY36.87%
SpS32.69
BVpS65.79
TBVpS53.28
PEG (NY)3.51
PEG (5Y)3.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 7.22% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 14.53% | ||
| GM | N/A | ||
| FCFM | 92.2% |
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 | 2.24 | ||
| Debt/FCF | 4.89 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 107.4% | ||
| Cap/Sales | 3.8% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 634.44% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC15.47%
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)-2.25%
EPS 3Y-0.47%
EPS 5Y3.11%
EPS Q2Q%-6.01%
EPS Next Y3.11%
EPS Next 2Y5.82%
EPS Next 3Y6.85%
EPS Next 5YN/A
Revenue 1Y (TTM)13.33%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%17.66%
Revenue Next Year5.68%
Revenue Next 2Y5.19%
Revenue Next 3Y4.6%
Revenue Next 5Y2.93%
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 1Y178.58%
FCF growth 3Y2.5%
FCF growth 5YN/A
OCF growth 1Y184.13%
OCF growth 3Y3.1%
OCF growth 5Y189.32%