TORONTO-DOMINION BANK (TD) Stock Fundamental Analysis
NYSE:TD - New York Stock Exchange, Inc. - CA8911605092 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to TD. TD was compared to 396 industry peers in the Banks industry. TD has a bad profitability rating. Also its financial health evaluation is rather negative. TD has a decent growth rate and is not valued too expensively. 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 had a positive cash flow from operations.
In the past 5 years TD has always been profitable.
TD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TD has a worse Return On Assets (0.40%) than 80.05% of its industry peers.
With a Return On Equity value of 6.95%, TD is not doing good in the industry: 62.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 6.95% | ||
| 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 worse Profit Margin (14.37%) than 77.53% of its industry peers.
TD's Profit Margin has declined in the last couple of years.
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) | 14.37% | ||
| 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
The number of shares outstanding for TD has been reduced compared to 5 years ago.
TD has a worse debt/assets ratio than last year.
2.2 Solvency
TD has a debt to FCF ratio of 11.47. This is a negative value and a sign of low solvency as TD would need 11.47 years to pay back of all of its debts.
TD has a Debt to FCF ratio of 11.47. This is amonst the worse of the industry: TD underperforms 80.30% of its industry peers.
A Debt/Equity ratio of 2.17 is on the high side and indicates that TD has dependencies on debt financing.
TD's Debt to Equity ratio of 2.17 is on the low side compared to the rest of the industry. TD is outperformed by 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 11.47 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.39%
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.89%.
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)12.89%
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.
Based on estimates for the next years, TD will show a small growth in Revenue. The Revenue will grow by 4.13% on average per year.
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 5Y4.13%
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
Based on the Price/Earnings ratio of 12.06, the valuation of TD can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TD is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.91. TD is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.62 indicates a reasonable valuation of TD.
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 61.36% 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 (21.85), we can say TD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 10.62 |
4.2 Price Multiples
TD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TD is cheaper than 83.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.2 | ||
| 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)4.71
PEG (5Y)3.87
EPS Next 2Y6.22%
EPS Next 3Y6.17%
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 4.61%, which is a nice return.
Compared to an average industry Dividend Yield of 3.34, TD pays a better dividend. On top of this TD pays more dividend than 85.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.39%
Div Incr Years14
Div Non Decr Years18
5.3 Sustainability
87.13% of the earnings are spent on dividend by TD. This is not a sustainable payout ratio.
The dividend of TD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP87.13%
EPS Next 2Y6.22%
EPS Next 3Y6.17%
NYSE:TD (5/23/2025, 9:58:10 AM)
67.51
+0.56 (+0.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.01%
Inst Owner Change3.74%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap117.19B
Analysts76.52
Price Target65.84 (-2.47%)
Short Float %0.64%
Short Ratio5.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
Yearly Dividend2.92
Dividend Growth(5Y)7.39%
DP87.13%
Div Incr Years14
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.04%
Min EPS beat(2)-8.09%
Max EPS beat(2)0%
EPS beat(4)2
Avg EPS beat(4)-1.2%
Min EPS beat(4)-8.09%
Max EPS beat(4)6.92%
EPS beat(8)3
Avg EPS beat(8)-2.87%
EPS beat(12)5
Avg EPS beat(12)-1.7%
EPS beat(16)7
Avg EPS beat(16)-0.38%
Revenue beat(2)1
Avg Revenue beat(2)7.25%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)15.62%
Revenue beat(4)3
Avg Revenue beat(4)6.6%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)15.62%
Revenue beat(8)6
Avg Revenue beat(8)4.8%
Revenue beat(12)8
Avg Revenue beat(12)4.89%
Revenue beat(16)11
Avg Revenue beat(16)3.74%
PT rev (1m)3.32%
PT rev (3m)9.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)4.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 10.62 | ||
| P/S | 2.82 | ||
| P/FCF | 7.2 | ||
| P/OCF | 6.56 | ||
| P/B | 1.37 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.6
EY8.3%
EPS(NY)6.35
Fwd EY9.41%
FCF(TTM)9.38
FCFY13.89%
OCF(TTM)10.29
OCFY15.24%
SpS23.91
BVpS49.45
TBVpS40
PEG (NY)4.71
PEG (5Y)3.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 6.95% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 14.37% | ||
| GM | N/A | ||
| FCFM | 39.21% |
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-Score6
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 11.47 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 106.94% | ||
| Cap/Sales | 3.83% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 272.78% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC15.39%
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)12.89%
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 5Y4.13%
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 1Y64.29%
FCF growth 3Y2.5%
FCF growth 5YN/A
OCF growth 1Y62.32%
OCF growth 3Y3.1%
OCF growth 5Y189.32%