We assign a fundamental rating of 3 out of 10 to TD. TD was compared to 383 industry peers in the Banks industry. TD has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, TD is valued expensive at the moment. Finally TD also has an excellent dividend rating.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year TD was profitable.
TD had a negative operating cash flow in the past year.
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's Return On Assets of 0.95% is in line compared to the rest of the industry. TD outperforms 55.09% of its industry peers.
TD's Return On Equity of 15.63% is amongst the best of the industry. TD outperforms 93.99% 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

The Profit Margin of TD (29.47%) is better than 76.50% of its industry peers.
In the last couple of years the Profit Margin of TD has grown nicely.
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)	29.47%
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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
TD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TD has a worse debt to assets ratio.

2.2 Solvency

A Debt/Equity ratio of 2.20 is on the high side and indicates that TD has dependencies on debt financing.
With a Debt to Equity ratio value of 2.20, TD is not doing good in the industry: 88.77% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	2.2
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACCN/A

WACC14.61%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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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.
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

TD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.90% yearly.
The Revenue is expected to grow by 5.07% on average over the next years.

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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 15.10, the valuation of TD can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TD indicates a slightly more expensive valuation: TD is more expensive than 69.97% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TD to the average of the S&P500 Index (28.32), we can say TD is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.53, TD is valued correctly.
TD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TD is more expensive than 69.45% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, TD is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	15.1
Fwd PE	13.53

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)1.3

PEG (5Y)1.62

EPS Next 2Y11.51%

EPS Next 3Y8.22%

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5. Dividend

5.1 Amount

TD has a Yearly Dividend Yield of 3.30%.
TD's Dividend Yield is a higher than the industry average which is at 2.67.
TD's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	3.3%

5.2 History

The dividend of TD is nicely growing with an annual growth rate of 9.90%!
TD has paid a dividend for at least 10 years, which is 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)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.
The dividend of TD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.

DP38.37%

EPS Next 2Y11.51%

EPS Next 3Y8.22%

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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%.