TORONTO-DOMINION BANK (TD.CA) Stock Fundamental Analysis
TSX:TD - CA8911605092 - Common Stock
104.44 CAD
+1.28 (+1.24%)
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. While showing a medium growth rate, TD is valued expensive at the moment. Finally 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.
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 an excellent Return On Assets value of 1.00%, TD belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
TD has a better Return On Equity (16.21%) than 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
The Profit Margin of TD (29.98%) is better than 84.62% of its industry peers.
TD's Profit Margin has declined in the last couple of years.
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) | 29.98% | ||
| 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.
TD has less shares outstanding than it did 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 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.
With a Debt to FCF ratio value of 15.32, TD perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
TD has a Debt/Equity ratio of 2.11. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.11, TD is in line with its industry, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 15.32 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.47%
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 -0.13%.
Measured over the past 5 years, TD shows a small growth in Earnings Per Share. The EPS has been growing by 3.11% on average per year.
The Revenue has grown by 23.52% in the past year. This is a very strong growth!
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)-0.13%
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.
Based on estimates for the next years, TD will show a small growth in Revenue. The Revenue will grow by 4.53% on average per year.
EPS Next Y5.77%
EPS Next 2Y6.77%
EPS Next 3Y6.79%
EPS Next 5Y8.06%
Revenue Next Year9.06%
Revenue Next 2Y6.43%
Revenue Next 3Y4.75%
Revenue Next 5Y4.53%
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
Based on the Price/Earnings ratio of 13.20, the valuation of TD can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TD indicates a slightly more expensive valuation: TD is more expensive than 76.92% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.07, TD is valued rather cheaply.
TD is valuated reasonably with a Price/Forward Earnings ratio of 11.73.
TD's Price/Forward Earnings ratio is rather expensive when compared to the industry. TD is more expensive than 80.77% of the companies in the same industry.
TD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 11.73 |
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 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.39 | ||
| 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)2.29
PEG (5Y)4.24
EPS Next 2Y6.77%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 4.06%, which is a nice return.
TD's Dividend Yield is a higher than the industry average which is at 3.58.
Compared to an average S&P500 Dividend Yield of 2.46, TD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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 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 2Y6.77%
EPS Next 3Y6.79%
TSX:TD (9/9/2025, 7:00:00 PM)
104.44
+1.28 (+1.24%)
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 Cap179.13B
Analysts77.27
Price Target105.93 (1.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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)7.59%
PT rev (3m)16.52%
EPS NQ rev (1m)2.42%
EPS NQ rev (3m)3.3%
EPS NY rev (1m)3.12%
EPS NY rev (3m)3.12%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 11.73 | ||
| P/S | 2.64 | ||
| P/FCF | 10.39 | ||
| P/OCF | 9.2 | ||
| P/B | 1.43 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.91
EY7.57%
EPS(NY)8.9
Fwd EY8.52%
FCF(TTM)10.05
FCFY9.62%
OCF(TTM)11.35
OCFY10.86%
SpS39.53
BVpS73.11
TBVpS60.24
PEG (NY)2.29
PEG (5Y)4.24
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
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-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
WACC15.47%
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 Y5.77%
EPS Next 2Y6.77%
EPS Next 3Y6.79%
EPS Next 5Y8.06%
Revenue 1Y (TTM)23.52%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%7.91%
Revenue Next Year9.06%
Revenue Next 2Y6.43%
Revenue Next 3Y4.75%
Revenue Next 5Y4.53%
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%