TORONTO-DOMINION BANK (TD) Stock Fundamental Analysis
NYSE:TD - New York Stock Exchange, Inc. - CA8911605092 - Common Stock - Currency: USD
Overall TD gets a fundamental rating of 3 out of 10. We evaluated TD against 405 industry peers in the Banks industry. TD may be in some trouble as it scores bad on both profitability and health. TD is valued correctly, but it does not seem to be growing. Finally 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 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
TD's Return On Assets of 0.40% is on the low side compared to the rest of the industry. TD is outperformed by 78.89% of its industry peers.
TD has a Return On Equity of 7.22%. This is comparable to the rest of the industry: TD outperforms 42.21% 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
TD has a worse Profit Margin (14.53%) than 76.13% 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.
Compared to 1 year ago, TD has less shares outstanding
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 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.
The Debt to FCF ratio of TD (4.89) is worse than 63.82% of its industry peers.
A Debt/Equity ratio of 2.24 is on the high side and indicates that TD has dependencies on debt financing.
With a Debt to Equity ratio value of 2.24, TD is not doing good in the industry: 92.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.24 | ||
| Debt/FCF | 4.89 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.97%
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%.
Measured over the past 5 years, TD shows a small growth in Earnings Per Share. The EPS has been growing by 3.11% on average per year.
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
The Earnings Per Share is expected to grow by 2.64% on average over the next years.
TD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.93% yearly.
EPS Next Y3.34%
EPS Next 2Y5.33%
EPS Next 3Y2.64%
EPS Next 5YN/A
Revenue Next Year3.06%
Revenue Next 2Y3.87%
Revenue Next 3Y1.41%
Revenue Next 5Y2.93%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 10.64, the valuation of TD can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TD indicates a rather cheap valuation: TD is cheaper than 80.15% of the companies listed in the same industry.
TD is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.30, the valuation of TD can be described as reasonable.
Based on the Price/Forward Earnings ratio, TD is valued a bit cheaper than 72.61% of the companies in the same industry.
TD is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TD is valued cheaper than 97.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.75 | ||
| 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)3.18
PEG (5Y)3.42
EPS Next 2Y5.33%
EPS Next 3Y2.64%
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 4.95%, which is a nice return.
TD's Dividend Yield is rather good when compared to the industry average which is at 3.15. TD pays more dividend than 90.70% of the companies in the same industry.
TD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
5.2 History
On average, the dividend of TD grows each year by 7.39%, which is quite nice.
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)7.39%
Div Incr Years14
Div Non Decr Years18
5.3 Sustainability
TD pays out 86.10% of its income as dividend. 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 2Y5.33%
EPS Next 3Y2.64%
TORONTO-DOMINION BANK
NYSE:TD (2/5/2025, 12:42:04 PM)
57.66
+0.34 (+0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners58.1%
Inst Owner Change0.21%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap100.81B
Analysts73.33
Price Target60.21 (4.42%)
Short Float %2.51%
Short Ratio17.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
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)1.8%
PT rev (3m)-3.11%
EPS NQ rev (1m)-2.46%
EPS NQ rev (3m)-6.79%
EPS NY rev (1m)-1.92%
EPS NY rev (3m)-6.66%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-5.04%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 10.3 | ||
| P/S | 2.54 | ||
| P/FCF | 2.75 | ||
| P/OCF | 2.64 | ||
| P/B | 1.26 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.42
EY9.4%
EPS(NY)5.6
Fwd EY9.71%
FCF(TTM)20.94
FCFY36.32%
OCF(TTM)21.8
OCFY37.82%
SpS22.71
BVpS45.71
TBVpS37.02
PEG (NY)3.18
PEG (5Y)3.42
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
WACC15.97%
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 Y3.34%
EPS Next 2Y5.33%
EPS Next 3Y2.64%
EPS Next 5YN/A
Revenue 1Y (TTM)13.33%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%17.66%
Revenue Next Year3.06%
Revenue Next 2Y3.87%
Revenue Next 3Y1.41%
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%