TORONTO-DOMINION BANK (TD) Stock Fundamental Analysis
USA - NYSE:TD - CA8911605092 - Common Stock
80.9 USD
+0.47 (+0.58%)
80.9 USD
0 (0%)
TD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 390 industry peers in the Banks industry. TD has a medium profitability rating, but doesn't score so well on its financial health evaluation. TD is quite expensive at the moment. It does show 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.
Each year in the past 5 years TD has been profitable.
Of the past 5 years TD 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TD (1.00%) is better than 63.85% of its industry peers.
With an excellent Return On Equity value of 16.21%, TD belongs to the best of the industry, outperforming 95.64% of the companies in the same industry.
| 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 80.77% of its industry peers.
TD's Profit Margin has declined in the last couple of years.
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) | 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.
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.
The debt/assets ratio for TD is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of TD is 15.32, which is on the high side as it means it would take TD, 15.32 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 15.32, TD is not doing good in the industry: 81.28% of the companies in the same industry are doing better.
TD has a Debt/Equity ratio of 2.11. This is a high value indicating a heavy dependency on external financing.
TD has a Debt to Equity ratio of 2.11. This is amonst the worse of the industry: TD underperforms 89.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 15.32 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.98%
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 -0.13% in the last year.
The Earnings Per Share has been growing slightly by 3.11% on average over the past years.
Looking at the last year, TD shows a very strong growth in Revenue. The Revenue has grown by 23.52%.
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
Based on estimates for the next years, TD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.06% on average per year.
The Revenue is expected to grow by 4.95% on average over the next years.
EPS Next Y8.14%
EPS Next 2Y7.38%
EPS Next 3Y7.63%
EPS Next 5Y8.06%
Revenue Next Year7.28%
Revenue Next 2Y5.68%
Revenue Next 3Y4.08%
Revenue Next 5Y4.95%
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 14.42, which indicates a correct valuation of TD.
Based on the Price/Earnings ratio, TD is valued a bit more expensive than 67.44% of the companies in the same industry.
TD is valuated rather cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
TD is valuated correctly with a Price/Forward Earnings ratio of 12.66.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TD indicates a slightly more expensive valuation: TD is more expensive than 67.95% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TD to the average of the S&P500 Index (32.68), we can say TD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 12.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.25 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.77
PEG (5Y)4.63
EPS Next 2Y7.38%
EPS Next 3Y7.63%
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 4.96%, which is a nice return.
Compared to an average industry Dividend Yield of 3.42, TD pays a better dividend. On top of this TD pays more dividend than 86.67% of the companies listed in the same industry.
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 | 4.96% |
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
37.08% of the earnings are spent on dividend by TD. This is a low number and 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 2Y7.38%
EPS Next 3Y7.63%
80.9
+0.47 (+0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners56.42%
Inst Owner Change-0.09%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap137.60B
Revenue(TTM)67.80B
Net Income(TTM)20.33B
Analysts77.27
Price Target83.6 (3.34%)
Short Float %0.87%
Short Ratio8.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
Yearly Dividend2.88
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)8.92%
PT rev (3m)16.61%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)2.72%
EPS NY rev (1m)0%
EPS NY rev (3m)5.44%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-4.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 12.66 | ||
| P/S | 2.86 | ||
| P/FCF | 11.25 | ||
| P/OCF | 9.96 | ||
| P/B | 1.55 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.61
EY6.93%
EPS(NY)6.39
Fwd EY7.9%
FCF(TTM)7.19
FCFY8.89%
OCF(TTM)8.12
OCFY10.04%
SpS28.29
BVpS52.32
TBVpS43.11
PEG (NY)1.77
PEG (5Y)4.63
Graham Number81.26
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
ROICexgc growth 3YN/A
ROICexgc 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
WACC15.98%
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 Y8.14%
EPS Next 2Y7.38%
EPS Next 3Y7.63%
EPS Next 5Y8.06%
Revenue 1Y (TTM)23.52%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%7.91%
Revenue Next Year7.28%
Revenue Next 2Y5.68%
Revenue Next 3Y4.08%
Revenue Next 5Y4.95%
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%
TORONTO-DOMINION BANK / TD FAQ
What is the ChartMill fundamental rating of TORONTO-DOMINION BANK (TD) stock?
ChartMill assigns a fundamental rating of 3 / 10 to TD.
What is the valuation status for TD stock?
ChartMill assigns a valuation rating of 3 / 10 to TORONTO-DOMINION BANK (TD). This can be considered as Overvalued.
What is the profitability of TD stock?
TORONTO-DOMINION BANK (TD) has a profitability rating of 4 / 10.
What are the PE and PB ratios of TORONTO-DOMINION BANK (TD) stock?
The Price/Earnings (PE) ratio for TORONTO-DOMINION BANK (TD) is 14.42 and the Price/Book (PB) ratio is 1.55.
Is the dividend of TORONTO-DOMINION BANK sustainable?
The dividend rating of TORONTO-DOMINION BANK (TD) is 9 / 10 and the dividend payout ratio is 37.08%.