TORONTO-DOMINION BANK (TD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TD - CA8911605092 - Common Stock
94.63 USD
-1.48 (-1.54%)
94.47 USD
-0.16 (-0.17%)
TD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 387 industry peers in the Banks industry. TD may be in some trouble as it scores bad on both profitability and health. TD is quite expensive at the moment. It does show a decent growth rate. Finally 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 has reported a negative cash flow from operations.
In the past 5 years TD has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: TD reported negative operating cash flow in multiple years.
1.2 Ratios
TD has a Return On Assets (0.95%) which is comparable to the rest of the industry.
TD's Return On Equity of 15.63% is amongst the best of the industry. TD outperforms 94.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 15.63% | ||
| ROIC | N/A |
ROA(3y)0.62%
ROA(5y)0.72%
ROE(3y)10.61%
ROE(5y)12.26%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 29.47%, TD is in the better half of the industry, outperforming 76.49% of the companies in the same industry.
In the last couple of years the Profit Margin of TD has grown nicely.
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) | 29.47% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.59%
PM growth 5Y2.04%
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.
Compared to 5 years ago, TD has less shares outstanding
TD has a worse debt/assets ratio than last year.
2.2 Solvency
A Debt/Equity ratio of 2.20 is on the high side and indicates that TD has dependencies on debt financing.
TD has a worse Debt to Equity ratio (2.20) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.48%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.17% over the past year.
The Earnings Per Share has been growing by 9.32% on average over the past years. This is quite good.
TD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.44%.
The Revenue has been growing by 9.20% on average over the past years. This is quite good.
EPS 1Y (TTM)7.17%
EPS 3Y0%
EPS 5Y9.32%
EPS Q2Q%26.74%
Revenue 1Y (TTM)18.44%
Revenue growth 3Y11.4%
Revenue growth 5Y9.2%
Sales Q2Q%-7.01%
3.2 Future
The Earnings Per Share is expected to grow by 7.90% on average over the next years.
Based on estimates for the next years, TD will show a small growth in Revenue. The Revenue will grow by 5.07% on average per year.
EPS Next Y11.62%
EPS Next 2Y11.51%
EPS Next 3Y8.22%
EPS Next 5Y7.9%
Revenue Next Year5.54%
Revenue Next 2Y4.91%
Revenue Next 3Y5.75%
Revenue Next 5Y5.07%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
TD is valuated correctly with a Price/Earnings ratio of 15.49.
Compared to the rest of the industry, the Price/Earnings ratio of TD indicates a slightly more expensive valuation: TD is more expensive than 70.54% of the companies listed in the same industry.
TD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.17.
Based on the Price/Forward Earnings ratio of 13.87, the valuation of TD can be described as correct.
TD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TD is more expensive than 72.87% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. TD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 13.87 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.33
PEG (5Y)1.66
EPS Next 2Y11.51%
EPS Next 3Y8.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.27%, TD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.78, TD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, TD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
5.2 History
On average, the dividend of TD grows each year by 9.90%, which is quite nice.
TD has paid a dividend for at least 10 years, which is a reliable track record.
TD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.9%
Div Incr Years14
Div Non Decr Years18
5.3 Sustainability
TD pays out 38.37% of its income as dividend. This is a sustainable payout ratio.
TD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.37%
EPS Next 2Y11.51%
EPS Next 3Y8.22%
94.63
-1.48 (-1.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners58.1%
Inst Owner Change0%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap160.54B
Revenue(TTM)67.78B
Net Income(TTM)19.97B
Analysts75.65
Price Target95.27 (0.68%)
Short Float %0.43%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Yearly Dividend3.25
Dividend Growth(5Y)9.9%
DP38.37%
Div Incr Years14
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.13%
Min EPS beat(2)3.97%
Max EPS beat(2)4.29%
EPS beat(4)4
Avg EPS beat(4)4.18%
Min EPS beat(4)0%
Max EPS beat(4)8.48%
EPS beat(8)6
Avg EPS beat(8)1.81%
EPS beat(12)6
Avg EPS beat(12)-0.65%
EPS beat(16)8
Avg EPS beat(16)-0.29%
Revenue beat(2)1
Avg Revenue beat(2)1.91%
Min Revenue beat(2)-0.3%
Max Revenue beat(2)4.13%
Revenue beat(4)1
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-2.05%
Max Revenue beat(4)4.13%
Revenue beat(8)5
Avg Revenue beat(8)4.26%
Revenue beat(12)7
Avg Revenue beat(12)2.99%
Revenue beat(16)10
Avg Revenue beat(16)3.82%
PT rev (1m)14.32%
PT rev (3m)24.12%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)1.86%
EPS NY rev (1m)1.85%
EPS NY rev (3m)3.73%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)2.39%
Revenue NY rev (1m)1.38%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 13.87 | ||
| P/S | 3.24 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.72 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.11
EY6.46%
EPS(NY)6.82
Fwd EY7.21%
FCF(TTM)-30.91
FCFYN/A
OCF(TTM)-29.98
OCFYN/A
SpS29.18
BVpS55.03
TBVpS45.39
PEG (NY)1.33
PEG (5Y)1.66
Graham Number86.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 15.63% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 29.47% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)0.62%
ROA(5y)0.72%
ROE(3y)10.61%
ROE(5y)12.26%
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-5.59%
PM growth 5Y2.04%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 99.03% | ||
| Cap/Sales | 3.16% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC14.48%
ROIC/WACCN/A
Cap/Depr(3y)100.98%
Cap/Depr(5y)87.98%
Cap/Sales(3y)3.54%
Cap/Sales(5y)3.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.17%
EPS 3Y0%
EPS 5Y9.32%
EPS Q2Q%26.74%
EPS Next Y11.62%
EPS Next 2Y11.51%
EPS Next 3Y8.22%
EPS Next 5Y7.9%
Revenue 1Y (TTM)18.44%
Revenue growth 3Y11.4%
Revenue growth 5Y9.2%
Sales Q2Q%-7.01%
Revenue Next Year5.54%
Revenue Next 2Y4.91%
Revenue Next 3Y5.75%
Revenue Next 5Y5.07%
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 1Y-236.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-226.77%
OCF growth 3YN/A
OCF growth 5YN/A
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 of TORONTO-DOMINION BANK (TD) stock?
ChartMill assigns a valuation rating of 2 / 10 to TORONTO-DOMINION BANK (TD). This can be considered as Overvalued.
Can you provide the profitability details for TORONTO-DOMINION BANK?
TORONTO-DOMINION BANK (TD) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for TD stock?
The Earnings per Share (EPS) of TORONTO-DOMINION BANK (TD) is expected to grow by 11.62% in the next year.
How sustainable is the dividend of TORONTO-DOMINION BANK (TD) stock?
The dividend rating of TORONTO-DOMINION BANK (TD) is 7 / 10 and the dividend payout ratio is 38.37%.