TORONTO-DOMINION BANK (TD.CA) Stock Fundamental Analysis
Canada - TSX:TD - CA8911605092 - Common Stock
113.58 CAD
+0.04 (+0.04%)
TD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 26 industry peers in the Banks industry. While TD is still in line with the averages on profitability rating, there are concerns on its financial health. TD is valied quite expensively at the moment, while 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.
TD had a positive operating cash flow in the past year.
In the past 5 years TD has always been profitable.
Of the past 5 years TD 4 years had a positive operating cash flow.
1.2 Ratios
TD has a Return On Assets of 1.00%. This is amongst the best in the industry. TD outperforms 84.62% of its industry peers.
TD's Return On Equity of 16.21% is amongst the best of the industry. TD outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1% | ||
| ROE | 16.21% | ||
| 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 29.98%, TD belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
TD's Profit Margin has declined in the last couple of years.
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) | 29.98% | ||
| 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
TD has a debt to FCF ratio of 15.32. This is a negative value and a sign of low solvency as TD would need 15.32 years to pay back of all of its debts.
The Debt to FCF ratio of TD (15.32) is comparable to the rest of the industry.
TD has a Debt/Equity ratio of 2.11. This is a high value indicating a heavy dependency on external financing.
TD has a Debt to Equity ratio (2.11) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 15.32 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.8%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for TD have decreased by -0.13% in the last year.
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 very strong growth in Revenue. The Revenue has grown by 23.52%.
TD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.86% yearly.
EPS 1Y (TTM)-0.13%
EPS 3Y-0.47%
EPS 5Y3.11%
EPS Q2Q%7.32%
Revenue 1Y (TTM)23.52%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%7.91%
3.2 Future
The Earnings Per Share is expected to grow by 8.06% on average over the next years. This is quite good.
TD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y8.14%
EPS Next 2Y7.38%
EPS Next 3Y7.63%
EPS Next 5Y8.06%
Revenue Next Year7.28%
Revenue Next 2Y5.68%
Revenue Next 3Y4.08%
Revenue Next 5Y4.95%
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
With a Price/Earnings ratio of 14.36, TD is valued correctly.
TD's Price/Earnings ratio is rather expensive when compared to the industry. TD is more expensive than 84.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of TD to the average of the S&P500 Index (25.83), we can say TD is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.61, the valuation of TD can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TD indicates a rather expensive valuation: TD more expensive than 80.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, TD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 12.61 |
4.2 Price Multiples
76.92% of the companies in the same industry are cheaper than TD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.21 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.76
PEG (5Y)4.61
EPS Next 2Y7.38%
EPS Next 3Y7.63%
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 3.70%.
TD's Dividend Yield is a higher than the industry average which is at 4.22.
Compared to an average S&P500 Dividend Yield of 2.37, TD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
On average, the dividend of TD grows each year by 7.39%, which is quite nice.
TD has paid a dividend for at least 10 years, which is 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 37.08% of its income as dividend. This is a sustainable payout ratio.
The dividend of TD is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP37.08%
EPS Next 2Y7.38%
EPS Next 3Y7.63%
TSX:TD (11/7/2025, 7:00:00 PM)
113.58
+0.04 (+0.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners56.42%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap193.18B
Revenue(TTM)67.80B
Net Income(TTM)20.33B
Analysts78.18
Price Target116.52 (2.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Yearly Dividend4.04
Dividend Growth(5Y)7.39%
DP37.08%
Div Incr Years14
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.22%
Min EPS beat(2)3.97%
Max EPS beat(2)8.48%
EPS beat(4)3
Avg EPS beat(4)1.09%
Min EPS beat(4)-8.09%
Max EPS beat(4)8.48%
EPS beat(8)5
Avg EPS beat(8)0.47%
EPS beat(12)6
Avg EPS beat(12)-0.76%
EPS beat(16)8
Avg EPS beat(16)-0.34%
Revenue beat(2)1
Avg Revenue beat(2)1.04%
Min Revenue beat(2)-2.05%
Max Revenue beat(2)4.13%
Revenue beat(4)2
Avg Revenue beat(4)4.15%
Min Revenue beat(4)-2.05%
Max Revenue beat(4)15.62%
Revenue beat(8)6
Avg Revenue beat(8)4.62%
Revenue beat(12)8
Avg Revenue beat(12)5.4%
Revenue beat(16)11
Avg Revenue beat(16)3.95%
PT rev (1m)9.77%
PT rev (3m)18.34%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)2.72%
EPS NY rev (1m)0%
EPS NY rev (3m)5.44%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-4.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 12.61 | ||
| P/S | 2.85 | ||
| P/FCF | 11.21 | ||
| P/OCF | 9.93 | ||
| P/B | 1.54 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.91
EY6.96%
EPS(NY)9.01
Fwd EY7.93%
FCF(TTM)10.14
FCFY8.92%
OCF(TTM)11.44
OCFY10.07%
SpS39.86
BVpS73.73
TBVpS60.75
PEG (NY)1.76
PEG (5Y)4.61
Graham Number114.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1% | ||
| ROE | 16.21% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 29.98% | ||
| GM | N/A | ||
| FCFM | 25.43% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score8
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 15.32 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 103.88% | ||
| Cap/Sales | 3.28% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 84.82% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC14.8%
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)-0.13%
EPS 3Y-0.47%
EPS 5Y3.11%
EPS Q2Q%7.32%
EPS Next Y8.14%
EPS Next 2Y7.38%
EPS Next 3Y7.63%
EPS Next 5Y8.06%
Revenue 1Y (TTM)23.52%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%7.91%
Revenue Next Year7.28%
Revenue Next 2Y5.68%
Revenue Next 3Y4.08%
Revenue Next 5Y4.95%
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 1Y121.83%
FCF growth 3Y2.5%
FCF growth 5YN/A
OCF growth 1Y125.2%
OCF growth 3Y3.1%
OCF growth 5Y189.32%
TORONTO-DOMINION BANK / TD.CA FAQ
What is the ChartMill fundamental rating of TORONTO-DOMINION BANK (TD.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to TD.CA.
What is the valuation status for TD stock?
ChartMill assigns a valuation rating of 2 / 10 to TORONTO-DOMINION BANK (TD.CA). This can be considered as Overvalued.
What is the profitability of TD stock?
TORONTO-DOMINION BANK (TD.CA) has a profitability rating of 4 / 10.
What are the PE and PB ratios of TORONTO-DOMINION BANK (TD.CA) stock?
The Price/Earnings (PE) ratio for TORONTO-DOMINION BANK (TD.CA) is 14.36 and the Price/Book (PB) ratio is 1.54.
Is the dividend of TORONTO-DOMINION BANK sustainable?
The dividend rating of TORONTO-DOMINION BANK (TD.CA) is 8 / 10 and the dividend payout ratio is 37.08%.