TORONTO-DOMINION BANK (TD) Stock Fundamental Analysis
NYSE:TD - New York Stock Exchange, Inc. - CA8911605092 - Common Stock - Currency: USD
TD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 395 industry peers in the Banks industry. Both the profitability and financial health of TD have multiple concerns. TD has a decent growth rate and is not valued too expensively. TD also has an excellent dividend rating.
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.
Of the past 5 years TD 4 years had a positive operating cash flow.
1.2 Ratios
TD has a Return On Assets of 0.82%. This is comparable to the rest of the industry: TD outperforms 49.37% of its industry peers.
The Return On Equity of TD (13.35%) is better than 87.85% of its industry peers.
| 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
With a Profit Margin value of 25.24%, TD perfoms like the industry average, outperforming 58.99% 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 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
Compared to 5 years ago, TD has less shares outstanding
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.
With a Debt to FCF ratio value of 8.50, TD is not doing good in the industry: 77.72% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.95 is on the high side and indicates that TD has dependencies on debt financing.
The Debt to Equity ratio of TD (1.95) is worse than 90.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 8.5 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.91%
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 -1.27%.
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 4.35% yearly.
EPS Next Y2.56%
EPS Next 2Y6.22%
EPS Next 3Y6.17%
EPS Next 5YN/A
Revenue Next Year7.64%
Revenue Next 2Y5.76%
Revenue Next 3Y4.88%
Revenue Next 5Y4.35%
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 12.52 indicates a correct valuation of TD.
TD's Price/Earnings ratio is in line with the industry average.
TD is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.03, which indicates a very decent valuation of TD.
Based on the Price/Forward Earnings ratio, TD is valued a bit more expensive than the industry average as 65.06% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.03, TD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.52 | ||
| Fwd PE | 11.03 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TD is valued cheaply inside the industry as 87.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.82 | ||
| 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)4.89
PEG (5Y)4.02
EPS Next 2Y6.22%
EPS Next 3Y6.17%
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 5.61%, which is a nice return.
Compared to an average industry Dividend Yield of 3.61, TD pays a better dividend. On top of this TD pays more dividend than 87.85% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
5.2 History
On average, the dividend of TD grows each year by 7.39%, which is quite nice.
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.
The dividend of TD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.8%
EPS Next 2Y6.22%
EPS Next 3Y6.17%
70.88
-0.42 (-0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners56.8%
Inst Owner Change3.66%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap123.04B
Analysts76.52
Price Target71.51 (0.89%)
Short Float %0.76%
Short Ratio6.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend2.95
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)8.62%
PT rev (3m)13.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.52 | ||
| Fwd PE | 11.03 | ||
| P/S | 2.53 | ||
| P/FCF | 5.82 | ||
| P/OCF | 5.4 | ||
| P/B | 1.34 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.66
EY7.99%
EPS(NY)6.42
Fwd EY9.06%
FCF(TTM)12.19
FCFY17.19%
OCF(TTM)13.12
OCFY18.51%
SpS28.01
BVpS52.96
TBVpS43.78
PEG (NY)4.89
PEG (5Y)4.02
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
WACC16.91%
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 Year7.64%
Revenue Next 2Y5.76%
Revenue Next 3Y4.88%
Revenue Next 5Y4.35%
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%