TORONTO-DOMINION BANK (TD)
CA8911605092 - Common Stock
Taking everything into account, TD scores 3 out of 10 in our fundamental rating. TD was compared to 404 industry peers in the Banks industry. TD has a bad profitability rating. Also its financial health evaluation is rather negative. TD is not valued too expensively and it also shows a decent growth rate. Finally 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.
TD had positive earnings in each of the past 5 years.
TD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TD has a Return On Assets of 0.40%. This is in the lower half of the industry: TD underperforms 78.64% of its industry peers.
TD has a Return On Equity (7.22%) which is comparable to the rest of the industry.
| 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
TD has a Profit Margin of 14.53%. This is in the lower half of the industry: TD underperforms 76.13% 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) | 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.
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
TD has a debt to FCF ratio of 4.89. This is a neutral value as TD would need 4.89 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.89, TD is doing worse than 63.82% of the companies in the same industry.
TD has a Debt/Equity ratio of 2.24. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.24, TD is doing worse than 92.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.24 | ||
| Debt/FCF | 4.89 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.79%
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 -1.62%.
TD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.25% yearly.
The Revenue has grown by 13.33% in the past year. This is quite good.
The Revenue has been growing slightly by 6.86% on average over the past years.
EPS 1Y (TTM)-1.62%
EPS 3Y-0.25%
EPS 5Y3.25%
EPS Q2Q%-3.23%
Revenue 1Y (TTM)13.33%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%21.09%
3.2 Future
The Earnings Per Share is expected to grow by 5.43% on average over the next years.
Based on estimates for the next years, TD will show a small growth in Revenue. The Revenue will grow by 1.94% on average per year.
EPS Next Y4.68%
EPS Next 2Y5.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.99%
Revenue Next 2Y3.58%
Revenue Next 3Y1.41%
Revenue Next 5Y1.94%
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
The Price/Earnings ratio is 9.75, which indicates a very decent valuation of TD.
TD's Price/Earnings ratio is rather cheap when compared to the industry. TD is cheaper than 86.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.17. TD is valued rather cheaply when compared to this.
TD is valuated reasonably with a Price/Forward Earnings ratio of 9.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TD indicates a rather cheap valuation: TD is cheaper than 81.66% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.59, TD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 9.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TD indicates a rather cheap valuation: TD is cheaper than 97.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.54 | ||
| 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)2.08
PEG (5Y)3
EPS Next 2Y5.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 5.39%, which is a nice return.
Compared to an average industry Dividend Yield of 3.16, TD pays a better dividend. On top of this TD pays more dividend than 93.97% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, TD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
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 2Y5.43%
EPS Next 3YN/A
TORONTO-DOMINION BANK
NYSE:TD (12/31/2024, 8:04:00 PM)
After market: 53.49 +0.25 (+0.47%)53.24
+0.16 (+0.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners58.1%
Inst Owner Change22.9%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap93.08B
Analysts71.2
Price Target59.14 (11.08%)
Short Float %0.73%
Short Ratio5.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
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)-4.5%
Min EPS beat(2)-5.37%
Max EPS beat(2)-3.63%
EPS beat(4)2
Avg EPS beat(4)0.12%
Min EPS beat(4)-5.37%
Max EPS beat(4)6.92%
EPS beat(8)2
Avg EPS beat(8)-2.72%
EPS beat(12)4
Avg EPS beat(12)-1.56%
EPS beat(16)7
Avg EPS beat(16)1%
Revenue beat(2)2
Avg Revenue beat(2)12.21%
Min Revenue beat(2)5.43%
Max Revenue beat(2)18.98%
Revenue beat(4)4
Avg Revenue beat(4)9.2%
Min Revenue beat(4)5.43%
Max Revenue beat(4)18.98%
Revenue beat(8)6
Avg Revenue beat(8)4.84%
Revenue beat(12)9
Avg Revenue beat(12)5.34%
Revenue beat(16)12
Avg Revenue beat(16)4.28%
PT rev (1m)-3.65%
PT rev (3m)-8.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 9.31 | ||
| P/S | 2.34 | ||
| P/FCF | 2.54 | ||
| P/OCF | 2.44 | ||
| P/B | 1.16 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.46
EY10.26%
EPS(NY)5.72
Fwd EY10.74%
FCF(TTM)20.97
FCFY39.39%
OCF(TTM)21.84
OCFY41.02%
SpS22.75
BVpS45.78
TBVpS37.08
PEG (NY)2.08
PEG (5Y)3
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
WACC15.79%
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)-1.62%
EPS 3Y-0.25%
EPS 5Y3.25%
EPS Q2Q%-3.23%
EPS Next Y4.68%
EPS Next 2Y5.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.33%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%21.09%
Revenue Next Year2.99%
Revenue Next 2Y3.58%
Revenue Next 3Y1.41%
Revenue Next 5Y1.94%
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%