TORONTO-DOMINION BANK (TD) Stock Fundamental Analysis
USA - NYSE:TD - CA8911605092 - Common Stock
79.83 USD
-0.62 (-0.77%)
80 USD
+0.17 (+0.21%)
TD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 392 industry peers in the Banks industry. There are concerns on the financial health of TD while its profitability can be described as average. TD is valied quite expensively at the moment, while it does show a decent growth rate. TD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TD had positive earnings in the past year.
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 63.52% of its industry peers.
TD's Return On Equity of 16.21% is amongst the best of the industry. TD outperforms 95.41% 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
TD has a better Profit Margin (29.98%) than 80.87% of its industry peers.
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) | 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.
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: 81.63% 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.
Looking at the Debt to Equity ratio, with a value of 2.11, TD is doing worse than 89.54% 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
WACC16.16%
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.
The Revenue has grown by 23.52% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 6.86% on average over the past years.
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
TD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.06% yearly.
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
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.
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 14.08, which indicates a correct valuation of TD.
63.01% of the companies in the same industry are cheaper than TD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.70, TD is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.36, TD is valued correctly.
Based on the Price/Forward Earnings ratio, TD is valued a bit more expensive than 67.35% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TD to the average of the S&P500 Index (23.15), we can say TD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as TD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.98 | ||
| 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)1.73
PEG (5Y)4.52
EPS Next 2Y7.38%
EPS Next 3Y7.63%
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 3.78%.
Compared to an average industry Dividend Yield of 3.59, TD pays a bit more dividend than its industry peers.
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 | 3.78% |
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
TD pays out 37.08% of its income as dividend. This is a sustainable payout ratio.
TD's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP37.08%
EPS Next 2Y7.38%
EPS Next 3Y7.63%
79.83
-0.62 (-0.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners56.42%
Inst Owner Change0%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap135.78B
Analysts77.27
Price Target78.44 (-1.74%)
Short Float %0.55%
Short Ratio5.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend2.9
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)4.87%
PT rev (3m)9.68%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)3.55%
EPS NY rev (1m)2.25%
EPS NY rev (3m)5.44%
Revenue NQ rev (1m)-4.68%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)-1.63%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 12.36 | ||
| P/S | 2.79 | ||
| P/FCF | 10.98 | ||
| P/OCF | 9.73 | ||
| P/B | 1.51 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.67
EY7.1%
EPS(NY)6.46
Fwd EY8.09%
FCF(TTM)7.27
FCFY9.11%
OCF(TTM)8.21
OCFY10.28%
SpS28.59
BVpS52.88
TBVpS43.57
PEG (NY)1.73
PEG (5Y)4.52
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
WACC16.16%
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%