TORONTO-DOMINION BANK (TD.CA) Stock Fundamental Analysis
TSX:TD - Toronto Stock Exchange - CA8911605092 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to TD. TD was compared to 29 industry peers in the Banks industry. TD may be in some trouble as it scores bad on both profitability and health. 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
TD had positive earnings in the past year.
In the past year TD had a positive cash flow from operations.
Each year in the past 5 years TD has been profitable.
TD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of TD (0.82%) is better than 82.76% of its industry peers.
TD's Return On Equity of 13.35% is fine compared to the rest of the industry. TD outperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 13.35% | ||
| 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 25.24%, TD is doing worse than 68.97% 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) | 25.24% | ||
| 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
TD has a debt to FCF ratio of 8.50. This is a slightly negative value and a sign of low solvency as TD would need 8.50 years to pay back of all of its debts.
The Debt to FCF ratio of TD (8.50) is worse than 72.41% of its industry peers.
TD has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
TD's Debt to Equity ratio of 1.95 is in line compared to the rest of the industry. TD outperforms 55.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 8.5 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.9%
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 -1.27%.
The Earnings Per Share has been growing slightly by 3.11% on average over the past years.
TD shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.34%.
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)-1.27%
EPS 3Y-0.47%
EPS 5Y3.11%
EPS Q2Q%-3.43%
Revenue 1Y (TTM)24.34%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%1.03%
3.2 Future
The Earnings Per Share is expected to grow by 6.17% on average over the next years.
The Revenue is expected to grow by 4.34% on average over the next years.
EPS Next Y2.56%
EPS Next 2Y6.22%
EPS Next 3Y6.17%
EPS Next 5YN/A
Revenue Next Year9.16%
Revenue Next 2Y6.45%
Revenue Next 3Y4.89%
Revenue Next 5Y4.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 12.98, which indicates a correct valuation of TD.
TD's Price/Earnings ratio is rather expensive when compared to the industry. TD is more expensive than 86.21% of the companies in the same industry.
TD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
With a Price/Forward Earnings ratio of 11.44, the valuation of TD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TD is valued expensively inside the industry as 86.21% of the companies are valued cheaper.
TD is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TD is valued a bit more expensive than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.98 | ||
| 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)5.07
PEG (5Y)4.17
EPS Next 2Y6.22%
EPS Next 3Y6.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.16%, TD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.61, TD is paying slightly less dividend.
TD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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
TD pays out 43.80% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of TD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.8%
EPS Next 2Y6.22%
EPS Next 3Y6.17%
TSX:TD (8/8/2025, 7:00:00 PM)
100.76
+0.52 (+0.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners56.8%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap173.36B
Analysts76.52
Price Target98.46 (-2.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend4.04
Dividend Growth(5Y)7.39%
DP43.8%
Div Incr Years14
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.24%
Min EPS beat(2)0%
Max EPS beat(2)8.48%
EPS beat(4)2
Avg EPS beat(4)-0.81%
Min EPS beat(4)-8.09%
Max EPS beat(4)8.48%
EPS beat(8)4
Avg EPS beat(8)-0.69%
EPS beat(12)5
Avg EPS beat(12)-1.14%
EPS beat(16)7
Avg EPS beat(16)-0.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-2.05%
Max Revenue beat(2)-1.12%
Revenue beat(4)2
Avg Revenue beat(4)4.47%
Min Revenue beat(4)-2.05%
Max Revenue beat(4)15.62%
Revenue beat(8)6
Avg Revenue beat(8)4.84%
Revenue beat(12)7
Avg Revenue beat(12)4.49%
Revenue beat(16)11
Avg Revenue beat(16)3.81%
PT rev (1m)0.49%
PT rev (3m)7.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.99%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)1.41%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 11.44 | ||
| P/S | 2.6 | ||
| P/FCF | 5.98 | ||
| P/OCF | 5.55 | ||
| P/B | 1.37 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.76
EY7.7%
EPS(NY)8.81
Fwd EY8.74%
FCF(TTM)16.86
FCFY16.74%
OCF(TTM)18.15
OCFY18.01%
SpS38.75
BVpS73.29
TBVpS60.58
PEG (NY)5.07
PEG (5Y)4.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 13.35% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 25.24% | ||
| GM | N/A | ||
| FCFM | 43.51% |
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-Score9
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 8.5 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 105.33% | ||
| Cap/Sales | 3.32% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 172.41% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC14.9%
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)-1.27%
EPS 3Y-0.47%
EPS 5Y3.11%
EPS Q2Q%-3.43%
EPS Next Y2.56%
EPS Next 2Y6.22%
EPS Next 3Y6.17%
EPS Next 5YN/A
Revenue 1Y (TTM)24.34%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%1.03%
Revenue Next Year9.16%
Revenue Next 2Y6.45%
Revenue Next 3Y4.89%
Revenue Next 5Y4.34%
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 1Y200.01%
FCF growth 3Y2.5%
FCF growth 5YN/A
OCF growth 1Y213.47%
OCF growth 3Y3.1%
OCF growth 5Y189.32%