TORONTO-DOMINION BANK (TD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TD - CA8911605092 - Common Stock
91.42 USD
-0.41 (-0.45%)
91.42 USD
0 (0%)
TD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 386 industry peers in the Banks industry. Both the profitability and financial health of TD have multiple concerns. While showing a medium growth rate, TD is valued expensive at the moment. 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.
Each year in the past 5 years TD has been profitable.
In multiple years TD reported negative operating cash flow during the last 5 years.
1.2 Ratios
TD has a Return On Assets (0.95%) which is in line with its industry peers.
With an excellent Return On Equity value of 15.63%, TD belongs to the best of the industry, outperforming 94.06% of the companies in the same industry.
| 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
TD's Profit Margin of 29.47% is fine compared to the rest of the industry. TD outperforms 77.52% of its industry peers.
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.
Compared to 1 year ago, TD has less shares outstanding
Compared to 5 years ago, TD has less shares outstanding
Compared to 1 year ago, TD has a worse debt to assets ratio.
2.2 Solvency
TD has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TD (2.20) is worse than 89.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.64%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
TD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.17%.
TD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.32% yearly.
Looking at the last year, TD shows a quite strong growth in Revenue. The Revenue has grown by 18.44% in the last year.
TD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.20% yearly.
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
Based on estimates for the next years, TD will show a small growth in Earnings Per Share. The EPS will grow by 7.90% on average per year.
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 Y9.59%
EPS Next 2Y9.88%
EPS Next 3Y8.57%
EPS Next 5Y7.9%
Revenue Next Year4.11%
Revenue Next 2Y4.37%
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 15.06.
Compared to the rest of the industry, the Price/Earnings ratio of TD indicates a slightly more expensive valuation: TD is more expensive than 67.44% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TD to the average of the S&P500 Index (26.54), we can say TD is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.75 indicates a correct valuation of TD.
Based on the Price/Forward Earnings ratio, TD is valued a bit more expensive than the industry average as 70.80% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.78. TD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 13.75 |
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)1.57
PEG (5Y)1.62
EPS Next 2Y9.88%
EPS Next 3Y8.57%
5. Dividend
5.1 Amount
TD has a Yearly Dividend Yield of 3.35%.
TD's Dividend Yield is a higher than the industry average which is at 2.87.
TD's Dividend Yield is rather good when compared to the S&P500 average which is at 1.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
5.2 History
The dividend of TD is nicely growing with an annual growth rate of 9.90%!
TD has been paying a dividend for at least 10 years, so it has 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
38.37% of the earnings are spent on dividend by TD. This is a low number and sustainable payout ratio.
The dividend of TD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.37%
EPS Next 2Y9.88%
EPS Next 3Y8.57%
91.42
-0.41 (-0.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners56.42%
Inst Owner Change-1.08%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap155.09B
Revenue(TTM)67.78B
Net Income(TTM)19.97B
Analysts75.65
Price Target89.04 (-2.6%)
Short Float %0.39%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend3.24
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)6.51%
PT rev (3m)19.05%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)0.65%
EPS NY rev (3m)3.03%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)-2.87%
Revenue NY rev (1m)-1.94%
Revenue NY rev (3m)-3.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 13.75 | ||
| P/S | 3.16 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.67 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.07
EY6.64%
EPS(NY)6.65
Fwd EY7.27%
FCF(TTM)-30.67
FCFYN/A
OCF(TTM)-29.75
OCFYN/A
SpS28.95
BVpS54.61
TBVpS45.04
PEG (NY)1.57
PEG (5Y)1.62
Graham Number86.36
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
WACC14.64%
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 Y9.59%
EPS Next 2Y9.88%
EPS Next 3Y8.57%
EPS Next 5Y7.9%
Revenue 1Y (TTM)18.44%
Revenue growth 3Y11.4%
Revenue growth 5Y9.2%
Sales Q2Q%-7.01%
Revenue Next Year4.11%
Revenue Next 2Y4.37%
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 for TD stock?
ChartMill assigns a valuation rating of 2 / 10 to TORONTO-DOMINION BANK (TD). This can be considered as Overvalued.
What is the profitability of TD stock?
TORONTO-DOMINION BANK (TD) has a profitability rating of 3 / 10.
What are the PE and PB ratios of TORONTO-DOMINION BANK (TD) stock?
The Price/Earnings (PE) ratio for TORONTO-DOMINION BANK (TD) is 15.06 and the Price/Book (PB) ratio is 1.67.
Is the dividend of TORONTO-DOMINION BANK sustainable?
The dividend rating of TORONTO-DOMINION BANK (TD) is 7 / 10 and the dividend payout ratio is 38.37%.