TORONTO-DOMINION BANK (TD) Stock Fundamental Analysis
NYSE:TD - New York Stock Exchange, Inc. - CA8911605092 - Common Stock - Currency: USD
Overall TD gets a fundamental rating of 3 out of 10. We evaluated TD against 394 industry peers in the Banks industry. Both the profitability and financial health of TD have multiple concerns. TD has a correct valuation and a medium 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 had a positive cash flow from operations.
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
TD's Return On Assets of 0.82% is in line compared to the rest of the industry. TD outperforms 49.49% of its industry peers.
TD's Return On Equity of 13.35% is amongst the best of the industry. TD outperforms 87.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 13.35% | ||
| 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 25.24%. This is comparable to the rest of the industry: TD outperforms 58.88% of its industry peers.
TD's Profit Margin has declined in the last couple of years.
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) | 25.24% | ||
| 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.
TD has a worse debt/assets ratio than last year.
2.2 Solvency
TD has a debt to FCF ratio of 8.50. This is a slightly negative value and a sign of low solvency as TD would need 8.50 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.50, TD is doing worse than 77.66% of the companies in the same industry.
TD has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.95, TD is not doing good in the industry: 90.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 8.5 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.34%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for TD have decreased by -1.27% in the last year.
TD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.11% yearly.
The Revenue has grown by 24.34% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 6.86% on average over the past years.
EPS 1Y (TTM)-1.27%
EPS 3Y-0.47%
EPS 5Y3.11%
EPS Q2Q%-3.43%
Revenue 1Y (TTM)24.34%
Revenue growth 3Y10.26%
Revenue growth 5Y6.86%
Sales Q2Q%1.03%
3.2 Future
TD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.17% yearly.
TD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
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 5Y4.34%
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.
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 13.08, 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.
Compared to an average S&P500 Price/Earnings ratio of 27.52, TD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.51, the valuation of TD can be described as reasonable.
Based on the Price/Forward Earnings ratio, TD is valued a bit more expensive than the industry average as 61.93% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, TD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 11.51 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TD is valued cheaply inside the industry as 88.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.01 | ||
| 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)5.11
PEG (5Y)4.2
EPS Next 2Y6.22%
EPS Next 3Y6.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.13%, TD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.31, TD pays a bit more dividend than its industry peers.
TD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
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 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
TD pays out 43.80% of its income as dividend. This is a bit on the high side, but may be sustainable.
TD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.8%
EPS Next 2Y6.22%
EPS Next 3Y6.17%
74.03
+0.43 (+0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners56.8%
Inst Owner Change0%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap127.37B
Analysts76.52
Price Target71.51 (-3.4%)
Short Float %0.76%
Short Ratio7.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
Yearly Dividend2.95
Dividend Growth(5Y)7.39%
DP43.8%
Div Incr Years14
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.24%
Min EPS beat(2)0%
Max EPS beat(2)8.48%
EPS beat(4)2
Avg EPS beat(4)-0.81%
Min EPS beat(4)-8.09%
Max EPS beat(4)8.48%
EPS beat(8)4
Avg EPS beat(8)-0.69%
EPS beat(12)5
Avg EPS beat(12)-1.14%
EPS beat(16)7
Avg EPS beat(16)-0.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-2.05%
Max Revenue beat(2)-1.12%
Revenue beat(4)2
Avg Revenue beat(4)4.47%
Min Revenue beat(4)-2.05%
Max Revenue beat(4)15.62%
Revenue beat(8)6
Avg Revenue beat(8)4.84%
Revenue beat(12)7
Avg Revenue beat(12)4.49%
Revenue beat(16)11
Avg Revenue beat(16)3.81%
PT rev (1m)0.94%
PT rev (3m)12.23%
EPS NQ rev (1m)2.62%
EPS NQ rev (3m)0.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 11.51 | ||
| P/S | 2.62 | ||
| P/FCF | 6.01 | ||
| P/OCF | 5.59 | ||
| P/B | 1.38 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.66
EY7.65%
EPS(NY)6.43
Fwd EY8.69%
FCF(TTM)12.31
FCFY16.63%
OCF(TTM)13.25
OCFY17.89%
SpS28.29
BVpS53.49
TBVpS44.21
PEG (NY)5.11
PEG (5Y)4.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 13.35% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 25.24% | ||
| GM | N/A | ||
| FCFM | 43.51% |
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-Score9
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 8.5 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 105.33% | ||
| Cap/Sales | 3.32% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 172.41% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC16.34%
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)24.34%
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 5Y4.34%
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 1Y200.01%
FCF growth 3Y2.5%
FCF growth 5YN/A
OCF growth 1Y213.47%
OCF growth 3Y3.1%
OCF growth 5Y189.32%