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 396 industry peers in the Banks industry. TD may be in some trouble as it scores bad on both profitability and health. 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.
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 49.49% of its industry peers.
TD's Return On Equity of 13.35% is amongst the best of the industry. TD outperforms 87.63% 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
TD has a Profit Margin of 25.24%. This is comparable to the rest of the industry: TD outperforms 59.34% 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
Compared to 5 years ago, TD has less shares outstanding
TD has a worse debt/assets ratio than last year.
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 77.78% of its industry peers.
A Debt/Equity ratio of 1.95 is on the high side and indicates that TD has dependencies on debt financing.
TD has a Debt to Equity ratio of 1.95. This is amonst the worse of the industry: TD underperforms 90.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 8.5 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.78%
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%.
TD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.11% yearly.
The Revenue has grown by 24.34% 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)-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
The Earnings Per Share is expected to grow by 6.17% on average over the next years.
The Revenue is expected to grow by 4.35% on average over the next years.
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
The Price/Earnings ratio is 12.44, which indicates a correct valuation of TD.
TD's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TD to the average of the S&P500 Index (26.31), we can say TD is valued rather cheaply.
A Price/Forward Earnings ratio of 10.95 indicates a reasonable valuation of TD.
Based on the Price/Forward Earnings ratio, TD is valued a bit more expensive than 63.89% of the companies in the same industry.
TD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
87.37% of the companies in the same industry are more expensive than TD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.77 | ||
| EV/EBITDA | N/A |
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)4.86
PEG (5Y)4
EPS Next 2Y6.22%
EPS Next 3Y6.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.33%, TD is a good candidate for dividend investing.
TD's Dividend Yield is rather good when compared to the industry average which is at 3.48. TD pays more dividend than 80.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, TD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
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.
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%
70.8
+0.02 (+0.03%)
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 Cap122.90B
Analysts76.52
Price Target70.85 (0.07%)
Short Float %0.74%
Short Ratio6.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
Yearly Dividend2.97
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)7.61%
PT rev (3m)12.31%
EPS NQ rev (1m)-1.59%
EPS NQ rev (3m)-3.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)1.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 10.95 | ||
| P/S | 2.51 | ||
| P/FCF | 5.77 | ||
| P/OCF | 5.36 | ||
| P/B | 1.33 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.69
EY8.04%
EPS(NY)6.46
Fwd EY9.13%
FCF(TTM)12.26
FCFY17.32%
OCF(TTM)13.2
OCFY18.64%
SpS28.18
BVpS53.3
TBVpS44.05
PEG (NY)4.86
PEG (5Y)4
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
WACC16.78%
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%