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 30 industry peers in the Banks industry. TD has a bad profitability rating. Also its financial health evaluation is rather negative. TD is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TD was profitable.
TD had a positive operating cash flow in the past year.
TD had positive earnings in each of the past 5 years.
Of the past 5 years TD 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.40%, TD is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
With a Return On Equity value of 6.95%, TD is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| 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
TD's Profit Margin of 14.37% is on the low side compared to the rest of the industry. TD is outperformed by 90.00% 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) | 14.37% | ||
| 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.
Compared to 1 year ago, TD has less shares outstanding
Compared to 5 years ago, TD has less shares outstanding
TD has a worse debt/assets ratio than last year.
2.2 Solvency
TD has a debt to FCF ratio of 11.47. This is a negative value and a sign of low solvency as TD would need 11.47 years to pay back of all of its debts.
TD has a Debt to FCF ratio (11.47) which is in line with its industry peers.
TD has a Debt/Equity ratio of 2.17. This is a high value indicating a heavy dependency on external financing.
TD has a Debt to Equity ratio of 2.17. This is comparable to the rest of the industry: TD outperforms 56.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 11.47 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.54%
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%.
The Earnings Per Share has been growing slightly by 3.11% on average over the past years.
TD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.73%.
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)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
The Earnings Per Share is expected to grow by 6.17% 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 4.13% yearly.
EPS Next Y2.56%
EPS Next 2Y6.22%
EPS Next 3Y6.17%
EPS Next 5YN/A
Revenue Next Year7.74%
Revenue Next 2Y5.85%
Revenue Next 3Y4.88%
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 11.15 indicates a reasonable valuation of TD.
Based on the Price/Earnings ratio, TD is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 23.99, TD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.91, the valuation of TD can be described as reasonable.
86.67% of the companies in the same industry are cheaper than TD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, TD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.15 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
TD's Price/Free Cash Flow ratio is rather expensive when compared to the industry. TD is more expensive than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.78 | ||
| 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)4.35
PEG (5Y)3.58
EPS Next 2Y6.22%
EPS Next 3Y6.17%
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 4.74%, which is a nice return.
TD's Dividend Yield is comparable with the industry average which is at 4.38.
Compared to an average S&P500 Dividend Yield of 2.44, TD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
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 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
87.13% of the earnings are spent on dividend by TD. 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%
TSX:TD (5/7/2025, 7:00:00 PM)
87.34
-0.84 (-0.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.01%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap153.05B
Analysts76.52
Price Target91.41 (4.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Yearly Dividend4.04
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)-0.28%
PT rev (3m)5.69%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-4.67%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.18%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)4.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.15 | ||
| Fwd PE | 9.91 | ||
| P/S | 2.66 | ||
| P/FCF | 6.78 | ||
| P/OCF | 6.18 | ||
| P/B | 1.29 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.83
EY8.96%
EPS(NY)8.81
Fwd EY10.09%
FCF(TTM)12.88
FCFY14.75%
OCF(TTM)14.14
OCFY16.18%
SpS32.85
BVpS67.91
TBVpS54.93
PEG (NY)4.35
PEG (5Y)3.58
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
WACC15.54%
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 Year7.74%
Revenue Next 2Y5.85%
Revenue Next 3Y4.88%
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%