TORONTO-DOMINION BANK (TD) Stock Fundamental Analysis
NYSE:TD - CA8911605092 - Common Stock
74.87 USD
+0.34 (+0.46%)
TD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 395 industry peers in the Banks industry. While TD is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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
The Return On Assets of TD (1.00%) is better than 63.54% of its industry peers.
With an excellent Return On Equity value of 16.21%, TD belongs to the best of the industry, outperforming 95.19% of the companies in the same industry.
| 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 Profit Margin of 29.98%. This is amongst the best in the industry. TD outperforms 81.01% 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) | 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.
Compared to 1 year ago, TD has less shares outstanding
TD has less shares outstanding than it did 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.
TD's Debt to FCF ratio of 15.32 is on the low side compared to the rest of the industry. TD is outperformed by 80.51% of its industry peers.
A Debt/Equity ratio of 2.11 is on the high side and indicates that TD has dependencies on debt financing.
TD's Debt to Equity ratio of 2.11 is on the low side compared to the rest of the industry. TD is outperformed by 89.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 15.32 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.43%
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 -0.13%.
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 23.52%.
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
The Earnings Per Share is expected to grow by 8.06% on average over the next years. This is quite good.
Based on estimates for the next years, TD will show a small growth in Revenue. The Revenue will grow by 4.53% on average per year.
EPS Next Y5.77%
EPS Next 2Y6.77%
EPS Next 3Y6.79%
EPS Next 5Y8.06%
Revenue Next Year9.06%
Revenue Next 2Y6.43%
Revenue Next 3Y4.75%
Revenue Next 5Y4.53%
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
A Price/Earnings ratio of 13.04 indicates a correct valuation of TD.
Compared to the rest of the industry, the Price/Earnings ratio of TD is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TD to the average of the S&P500 Index (26.90), we can say TD is valued rather cheaply.
TD is valuated reasonably with a Price/Forward Earnings ratio of 11.59.
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 60.76% of the companies listed in the same industry.
TD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TD is valued a bit cheaper than 68.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| 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)2.26
PEG (5Y)4.19
EPS Next 2Y6.77%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.07%, TD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.17, TD pays a better dividend. On top of this TD pays more dividend than 81.27% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
5.2 History
The dividend of TD is nicely growing with an annual growth rate of 7.39%!
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
37.08% of the earnings are spent on dividend by TD. This is a low number and 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 2Y6.77%
EPS Next 3Y6.79%
NYSE:TD (9/3/2025, 2:18:55 PM)
74.87
+0.34 (+0.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners56.8%
Inst Owner Change-2.44%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap128.42B
Analysts77.27
Price Target74.79 (-0.11%)
Short Float %0.72%
Short Ratio5.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend2.93
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)4.32%
PT rev (3m)13.6%
EPS NQ rev (1m)1.13%
EPS NQ rev (3m)2%
EPS NY rev (1m)3.12%
EPS NY rev (3m)3.12%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 11.59 | ||
| P/S | 2.61 | ||
| P/FCF | 10.27 | ||
| P/OCF | 9.1 | ||
| P/B | 1.41 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.74
EY7.67%
EPS(NY)6.46
Fwd EY8.63%
FCF(TTM)7.29
FCFY9.74%
OCF(TTM)8.23
OCFY10.99%
SpS28.67
BVpS53.03
TBVpS43.69
PEG (NY)2.26
PEG (5Y)4.19
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
WACC16.43%
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 Y5.77%
EPS Next 2Y6.77%
EPS Next 3Y6.79%
EPS Next 5Y8.06%
Revenue 1Y (TTM)23.52%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%7.91%
Revenue Next Year9.06%
Revenue Next 2Y6.43%
Revenue Next 3Y4.75%
Revenue Next 5Y4.53%
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%