TORONTO-DOMINION BANK (TD) Stock Fundamental Analysis
NYSE:TD - New York Stock Exchange, Inc. - CA8911605092 - Common Stock - Currency: USD
Taking everything into account, TD scores 3 out of 10 in our fundamental rating. TD was compared to 398 industry peers in the Banks industry. TD has a bad profitability rating. Also its financial health evaluation is rather negative. TD has a decent growth rate and is not valued too expensively. 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.
In the past 5 years TD has always been profitable.
TD had a positive operating cash flow in 4 of the past 5 years.
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 79.90% of its industry peers.
TD has a worse Return On Equity (6.95%) than 61.81% 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
Looking at the Profit Margin, with a value of 14.37%, TD is doing worse than 75.88% of the companies in the same industry.
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) | 14.37% | ||
| 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.
The number of shares outstanding for TD has been reduced compared to 1 year ago.
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
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 worse than 77.39% of its industry peers.
TD has a Debt/Equity ratio of 2.17. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TD (2.17) is worse than 91.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 11.47 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.62%
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%.
TD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.11% yearly.
TD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.73%.
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
TD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.17% yearly.
Based on estimates for the next years, TD will show a small growth in Revenue. The Revenue will grow by 4.13% on average per year.
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
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.78 indicates a reasonable valuation of TD.
TD's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TD to the average of the S&P500 Index (27.63), we can say TD is valued rather cheaply.
TD is valuated reasonably with a Price/Forward Earnings ratio of 9.58.
The rest of the industry has a similar Price/Forward Earnings ratio as TD.
TD is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 9.58 |
4.2 Price Multiples
TD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TD is cheaper than 85.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.56 | ||
| 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)4.21
PEG (5Y)3.46
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.
TD's Dividend Yield is rather good when compared to the industry average which is at 3.66. TD pays more dividend than 82.16% of the companies in the same industry.
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 paid a dividend for at least 10 years, which is 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
TD pays out 87.13% 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.
DP87.13%
EPS Next 2Y6.22%
EPS Next 3Y6.17%
60.82
+0.12 (+0.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.01%
Inst Owner Change-0.05%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap106.58B
Analysts75.83
Price Target63.72 (4.77%)
Short Float %0.67%
Short Ratio4.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
Yearly Dividend2.91
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)1.02%
PT rev (3m)7.74%
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 | 10.78 | ||
| Fwd PE | 9.58 | ||
| P/S | 2.57 | ||
| P/FCF | 6.56 | ||
| P/OCF | 5.97 | ||
| P/B | 1.24 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.64
EY9.27%
EPS(NY)6.35
Fwd EY10.43%
FCF(TTM)9.28
FCFY15.25%
OCF(TTM)10.18
OCFY16.74%
SpS23.66
BVpS48.91
TBVpS39.56
PEG (NY)4.21
PEG (5Y)3.46
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
WACC15.62%
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%