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TORONTO-DOMINION BANK (TD.CA) Stock Fundamental Analysis

TSX:TD - Toronto Stock Exchange - CA8911605092 - Common Stock - Currency: CAD

82.81  -0.05 (-0.06%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to TD. TD was compared to 35 industry peers in the Banks industry. Both the profitability and financial health of TD have multiple concerns. TD does not seem to be growing, but still is valued expensively. TD also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

2

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.
TD.CA Yearly Net Income VS EBIT VS OCF VS FCFTD.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B -50B 100B 150B 200B

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 91.43% of its industry peers.
TD's Return On Equity of 7.22% is on the low side compared to the rest of the industry. TD is outperformed by 82.86% of its industry peers.
Industry RankSector Rank
ROA 0.4%
ROE 7.22%
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
TD.CA Yearly ROA, ROE, ROICTD.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 14.53%, TD is doing worse than 91.43% 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 RankSector Rank
OM N/A
PM (TTM) 14.53%
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
TD.CA Yearly Profit, Operating, Gross MarginsTD.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

2

2. Health

2.1 Basic Checks

TD does not have a ROIC to compare to the WACC, probably because it is not profitable.
TD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TD has been reduced compared to 5 years ago.
TD has a worse debt/assets ratio than last year.
TD.CA Yearly Shares OutstandingTD.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
TD.CA Yearly Total Debt VS Total AssetsTD.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500B 1T 1.5T 2T

2.2 Solvency

TD has a debt to FCF ratio of 4.89. This is a neutral value as TD would need 4.89 years to pay back of all of its debts.
TD has a better Debt to FCF ratio (4.89) than 80.00% of its industry peers.
A Debt/Equity ratio of 2.24 is on the high side and indicates that TD has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.24, TD is in line with its industry, outperforming 51.43% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.24
Debt/FCF 4.89
Altman-Z N/A
ROIC/WACCN/A
WACC15.86%
TD.CA Yearly LT Debt VS Equity VS FCFTD.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B -50B 100B 150B 200B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
TD.CA Yearly Current Assets VS Current LiabilitesTD.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B

3

3. Growth

3.1 Past

TD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.25%.
The Earnings Per Share has been growing slightly by 3.11% on average over the past years.
The Revenue has grown by 13.33% in the past year. This is quite good.
The Revenue has been growing slightly by 6.86% on average over the past years.
EPS 1Y (TTM)-2.25%
EPS 3Y-0.47%
EPS 5Y3.11%
EPS Q2Q%-6.01%
Revenue 1Y (TTM)13.33%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%17.66%

3.2 Future

The Earnings Per Share is expected to grow by 2.64% on average over the next years.
Based on estimates for the next years, TD will show a small growth in Revenue. The Revenue will grow by 2.93% on average per year.
EPS Next Y3.34%
EPS Next 2Y5.33%
EPS Next 3Y2.64%
EPS Next 5YN/A
Revenue Next Year3.06%
Revenue Next 2Y3.87%
Revenue Next 3Y1.41%
Revenue Next 5Y2.93%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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.
TD.CA Yearly Revenue VS EstimatesTD.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B
TD.CA Yearly EPS VS EstimatesTD.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8

3

4. Valuation

4.1 Price/Earnings Ratio

TD is valuated reasonably with a Price/Earnings ratio of 10.60.
Based on the Price/Earnings ratio, TD is valued a bit more expensive than 74.29% 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 28.12.
The Price/Forward Earnings ratio is 10.26, which indicates a very decent valuation of TD.
Based on the Price/Forward Earnings ratio, TD is valued a bit more expensive than 77.14% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 94.77, TD is valued rather cheaply.
Industry RankSector Rank
PE 10.6
Fwd PE 10.26
TD.CA Price Earnings VS Forward Price EarningsTD.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

TD's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TD is more expensive than 62.86% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.74
EV/EBITDA N/A
TD.CA Per share dataTD.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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)3.17
PEG (5Y)3.41
EPS Next 2Y5.33%
EPS Next 3Y2.64%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.95%, TD is a good candidate for dividend investing.
TD's Dividend Yield is a higher than the industry average which is at 3.91.
TD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 4.95%

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
TD.CA Yearly Dividends per shareTD.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

86.10% 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.
DP86.1%
EPS Next 2Y5.33%
EPS Next 3Y2.64%
TD.CA Yearly Income VS Free CF VS DividendTD.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B -50B 100B 150B 200B
TD.CA Dividend Payout.TD.CA Dividend Payout, showing the Payout Ratio.TD.CA Dividend Payout.PayoutRetained Earnings

TORONTO-DOMINION BANK

TSX:TD (2/7/2025, 7:00:00 PM)

82.81

-0.05 (-0.06%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)12-05 2024-12-05/bmo
Earnings (Next)02-27 2025-02-27/bmo
Inst Owners58.1%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap144.78B
Analysts73.33
Price Target86.49 (4.44%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.95%
Yearly Dividend4.04
Dividend Growth(5Y)7.39%
DP86.1%
Div Incr Years14
Div Non Decr Years18
Ex-Date01-10 2025-01-10 (1.05)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.86%
Min EPS beat(2)-8.09%
Max EPS beat(2)-3.63%
EPS beat(4)2
Avg EPS beat(4)-0.56%
Min EPS beat(4)-8.09%
Max EPS beat(4)6.92%
EPS beat(8)2
Avg EPS beat(8)-3.06%
EPS beat(12)4
Avg EPS beat(12)-1.79%
EPS beat(16)7
Avg EPS beat(16)0.83%
Revenue beat(2)2
Avg Revenue beat(2)10.53%
Min Revenue beat(2)5.43%
Max Revenue beat(2)15.62%
Revenue beat(4)4
Avg Revenue beat(4)8.36%
Min Revenue beat(4)5.43%
Max Revenue beat(4)15.62%
Revenue beat(8)6
Avg Revenue beat(8)4.42%
Revenue beat(12)9
Avg Revenue beat(12)5.06%
Revenue beat(16)12
Avg Revenue beat(16)4.07%
PT rev (1m)1.84%
PT rev (3m)0.76%
EPS NQ rev (1m)-2.46%
EPS NQ rev (3m)-6.79%
EPS NY rev (1m)-1.92%
EPS NY rev (3m)-6.66%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-5.04%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.82%
Valuation
Industry RankSector Rank
PE 10.6
Fwd PE 10.26
P/S 2.53
P/FCF 2.74
P/OCF 2.64
P/B 1.26
P/tB 1.55
EV/EBITDA N/A
EPS(TTM)7.81
EY9.43%
EPS(NY)8.07
Fwd EY9.75%
FCF(TTM)30.18
FCFY36.44%
OCF(TTM)31.42
OCFY37.95%
SpS32.73
BVpS65.87
TBVpS53.35
PEG (NY)3.17
PEG (5Y)3.41
Profitability
Industry RankSector Rank
ROA 0.4%
ROE 7.22%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 14.53%
GM N/A
FCFM 92.2%
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 RankSector Rank
Debt/Equity 2.24
Debt/FCF 4.89
Debt/EBITDA N/A
Cap/Depr 107.4%
Cap/Sales 3.8%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 634.44%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC15.86%
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)-2.25%
EPS 3Y-0.47%
EPS 5Y3.11%
EPS Q2Q%-6.01%
EPS Next Y3.34%
EPS Next 2Y5.33%
EPS Next 3Y2.64%
EPS Next 5YN/A
Revenue 1Y (TTM)13.33%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%17.66%
Revenue Next Year3.06%
Revenue Next 2Y3.87%
Revenue Next 3Y1.41%
Revenue Next 5Y2.93%
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 1Y178.58%
FCF growth 3Y2.5%
FCF growth 5YN/A
OCF growth 1Y184.13%
OCF growth 3Y3.1%
OCF growth 5Y189.32%