TORONTO-DOMINION BANK (TD) Stock Fundamental Analysis
NYSE:TD - New York Stock Exchange, Inc. - CA8911605092 - Common Stock - Currency: USD
Overall TD gets a fundamental rating of 3 out of 10. We evaluated TD against 392 industry peers in the Banks industry. TD has a bad profitability rating. Also its financial health evaluation is rather negative. TD is not valued too expensively and it also shows a decent growth rate. TD also has an excellent dividend rating.
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
Looking at the Return On Assets, with a value of 0.82%, TD is in line with its industry, outperforming 49.49% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.35%, TD belongs to the top of the industry, outperforming 87.76% of the companies in the same industry.
| 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
TD's Profit Margin of 25.24% is fine compared to the rest of the industry. TD outperforms 60.71% 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) | 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.
TD has a Debt to FCF ratio of 8.50. This is in the lower half of the industry: TD underperforms 76.53% 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 has a worse Debt to Equity ratio (1.95) than 90.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 8.5 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for TD have decreased by -1.27% in the last year.
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%.
TD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.86% yearly.
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
TD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.17% yearly.
TD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.96, which indicates a correct valuation of TD.
TD's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.03. TD is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.41, the valuation of TD can be described as reasonable.
64.80% of the companies in the same industry are cheaper than TD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.28. TD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
TD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TD is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.96 | ||
| 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)5.06
PEG (5Y)4.16
EPS Next 2Y6.22%
EPS Next 3Y6.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.13%, TD is a good candidate for dividend investing.
TD's Dividend Yield is a higher than the industry average which is at 3.51.
TD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
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
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.
TD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.8%
EPS Next 2Y6.22%
EPS Next 3Y6.17%
72.98
-0.5 (-0.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners56.8%
Inst Owner Change-0.09%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap125.56B
Analysts76.52
Price Target71.69 (-1.77%)
Short Float %1.63%
Short Ratio14.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
Yearly Dividend2.91
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)0.25%
PT rev (3m)8.35%
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 | 12.96 | ||
| Fwd PE | 11.41 | ||
| P/S | 2.59 | ||
| P/FCF | 5.96 | ||
| P/OCF | 5.54 | ||
| P/B | 1.37 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.63
EY7.71%
EPS(NY)6.4
Fwd EY8.76%
FCF(TTM)12.24
FCFY16.77%
OCF(TTM)13.17
OCFY18.05%
SpS28.13
BVpS53.19
TBVpS43.97
PEG (NY)5.06
PEG (5Y)4.16
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
WACC16%
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%