TORONTO-DOMINION BANK (TD.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TD - CA8911605092 - Common Stock
125.88 CAD
+2.41 (+1.95%)
Taking everything into account, TD scores 3 out of 10 in our fundamental rating. TD was compared to 24 industry peers in the Banks industry. There are concerns on the financial health of TD while its profitability can be described as average. While showing a medium growth rate, TD is valued expensive at the moment. TD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TD was profitable.
TD had a negative operating cash flow in the past year.
In the past 5 years TD has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: TD reported negative operating cash flow in multiple years.
1.2 Ratios
TD's Return On Assets of 0.95% is amongst the best of the industry. TD outperforms 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 15.63%, TD belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 15.63% | ||
| ROIC | N/A |
ROA(3y)0.62%
ROA(5y)0.72%
ROE(3y)10.61%
ROE(5y)12.26%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 29.47%, TD is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
In the last couple of years the Profit Margin of TD has grown nicely.
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) | 29.47% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.59%
PM growth 5Y2.04%
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
Compared to 5 years ago, TD has less shares outstanding
Compared to 1 year ago, TD has a worse debt to assets ratio.
2.2 Solvency
TD has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
TD's Debt to Equity ratio of 2.20 is in line compared to the rest of the industry. TD outperforms 54.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.65%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.17% over the past year.
The Earnings Per Share has been growing by 9.32% on average over the past years. This is quite good.
TD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.44%.
The Revenue has been growing by 9.20% on average over the past years. This is quite good.
EPS 1Y (TTM)7.17%
EPS 3Y0%
EPS 5Y9.32%
EPS Q2Q%26.74%
Revenue 1Y (TTM)18.44%
Revenue growth 3Y11.4%
Revenue growth 5Y9.2%
Sales Q2Q%-7.01%
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 7.90% on average per year.
The Revenue is expected to grow by 5.07% on average over the next years.
EPS Next Y9.59%
EPS Next 2Y9.88%
EPS Next 3Y8.57%
EPS Next 5Y7.9%
Revenue Next Year4.11%
Revenue Next 2Y4.37%
Revenue Next 3Y5.75%
Revenue Next 5Y5.07%
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 stable.
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
The Price/Earnings ratio is 15.04, which indicates a correct valuation of TD.
83.33% of the companies in the same industry are cheaper than TD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TD to the average of the S&P500 Index (26.59), we can say TD is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.72 indicates a correct valuation of TD.
Based on the Price/Forward Earnings ratio, TD is valued more expensive than 87.50% of the companies in the same industry.
TD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 13.72 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.57
PEG (5Y)1.61
EPS Next 2Y9.88%
EPS Next 3Y8.57%
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 3.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.19, TD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, TD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
5.2 History
The dividend of TD is nicely growing with an annual growth rate of 9.90%!
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)9.9%
Div Incr Years14
Div Non Decr Years18
5.3 Sustainability
TD pays out 38.37% of its income as dividend. This is a sustainable payout ratio.
The dividend of TD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.37%
EPS Next 2Y9.88%
EPS Next 3Y8.57%
TSX:TD (12/10/2025, 7:00:00 PM)
125.88
+2.41 (+1.95%)
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 Cap213.55B
Revenue(TTM)67.78B
Net Income(TTM)19.97B
Analysts75.65
Price Target124.22 (-1.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend4.46
Dividend Growth(5Y)9.9%
DP38.37%
Div Incr Years14
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.13%
Min EPS beat(2)3.97%
Max EPS beat(2)4.29%
EPS beat(4)4
Avg EPS beat(4)4.18%
Min EPS beat(4)0%
Max EPS beat(4)8.48%
EPS beat(8)6
Avg EPS beat(8)1.81%
EPS beat(12)6
Avg EPS beat(12)-0.65%
EPS beat(16)8
Avg EPS beat(16)-0.29%
Revenue beat(2)1
Avg Revenue beat(2)1.91%
Min Revenue beat(2)-0.3%
Max Revenue beat(2)4.13%
Revenue beat(4)1
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-2.05%
Max Revenue beat(4)4.13%
Revenue beat(8)5
Avg Revenue beat(8)4.26%
Revenue beat(12)7
Avg Revenue beat(12)2.99%
Revenue beat(16)10
Avg Revenue beat(16)3.82%
PT rev (1m)6.61%
PT rev (3m)17.27%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)0.65%
EPS NY rev (3m)3.03%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)-2.87%
Revenue NY rev (1m)-1.94%
Revenue NY rev (3m)-3.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 13.72 | ||
| P/S | 3.15 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.67 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)8.37
EY6.65%
EPS(NY)9.17
Fwd EY7.29%
FCF(TTM)-42.32
FCFYN/A
OCF(TTM)-41.05
OCFYN/A
SpS39.95
BVpS75.35
TBVpS62.15
PEG (NY)1.57
PEG (5Y)1.61
Graham Number119.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 15.63% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 29.47% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)0.62%
ROA(5y)0.72%
ROE(3y)10.61%
ROE(5y)12.26%
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-5.59%
PM growth 5Y2.04%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 99.03% | ||
| Cap/Sales | 3.16% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC13.65%
ROIC/WACCN/A
Cap/Depr(3y)100.98%
Cap/Depr(5y)87.98%
Cap/Sales(3y)3.54%
Cap/Sales(5y)3.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.17%
EPS 3Y0%
EPS 5Y9.32%
EPS Q2Q%26.74%
EPS Next Y9.59%
EPS Next 2Y9.88%
EPS Next 3Y8.57%
EPS Next 5Y7.9%
Revenue 1Y (TTM)18.44%
Revenue growth 3Y11.4%
Revenue growth 5Y9.2%
Sales Q2Q%-7.01%
Revenue Next Year4.11%
Revenue Next 2Y4.37%
Revenue Next 3Y5.75%
Revenue Next 5Y5.07%
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 1Y-236.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-226.77%
OCF growth 3YN/A
OCF growth 5YN/A
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 15.04 and the Price/Book (PB) ratio is 1.67.
Is the dividend of TORONTO-DOMINION BANK sustainable?
The dividend rating of TORONTO-DOMINION BANK (TD.CA) is 7 / 10 and the dividend payout ratio is 38.37%.