TORONTO-DOMINION BANK (TD)
CA8911605092 - Common Stock
We assign a fundamental rating of 3 out of 10 to TD. TD was compared to 412 industry peers in the Banks industry. TD has a bad profitability rating. Also its financial health evaluation is rather negative. TD has a valuation in line with the averages, but it does not seem to be growing. Finally TD also has an excellent dividend rating.
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.
Of the past 5 years TD 4 years had a positive operating cash flow.
1.2 Ratios
TD has a worse Return On Assets (0.60%) than 72.82% of its industry peers.
The Return On Equity of TD (10.20%) is better than 60.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 10.2% | ||
| ROIC | N/A |
ROA(3y)0.74%
ROA(5y)0.74%
ROE(3y)12.87%
ROE(5y)12.76%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TD's Profit Margin of 22.07% is in line compared to the rest of the industry. TD outperforms 41.26% of its industry peers.
In the last couple of years the Profit Margin of TD has declined.
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) | 22.07% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-8.76%
PM growth 5Y-6.56%
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
A Debt/Equity ratio of 2.06 is on the high side and indicates that TD has dependencies on debt financing.
With a Debt to Equity ratio value of 2.06, TD is not doing good in the industry: 92.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.41%
2.3 Liquidity
TD has a Current Ratio of 1.46. This is a normal value and indicates that TD is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TD (1.46) is better than 99.03% of its industry peers.
A Quick Ratio of 1.46 indicates that TD should not have too much problems paying its short term obligations.
TD has a better Quick ratio (1.46) than 99.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The earnings per share for TD have decreased by -8.92% in the last year.
The Earnings Per Share has been growing slightly by 4.31% on average over the past years.
TD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.01%.
The Revenue has been growing slightly by 5.36% on average over the past years.
EPS 1Y (TTM)-8.92%
EPS 3Y14.23%
EPS 5Y4.31%
EPS growth Q2Q-10.31%
Revenue 1Y (TTM)4.01%
Revenue growth 3Y4.98%
Revenue growth 5Y5.36%
Revenue growth Q2Q12.17%
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 5.05% on average per year.
Based on estimates for the next years, TD will show a small growth in Revenue. The Revenue will grow by 2.86% on average per year.
EPS Next Y0.58%
EPS Next 2Y3.99%
EPS Next 3Y5.05%
EPS Next 5YN/A
Revenue Next Year5.18%
Revenue Next 2Y5.36%
Revenue Next 3Y9.51%
Revenue Next 5Y2.86%
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.
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
The Price/Earnings ratio is 9.66, which indicates a very decent valuation of TD.
TD's Price/Earnings ratio is in line with the industry average.
TD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.28.
Based on the Price/Forward Earnings ratio of 8.68, the valuation of TD can be described as reasonable.
Based on the Price/Forward Earnings ratio, TD is valued a bit cheaper than 70.15% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.88. TD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 8.68 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| 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)16.7
PEG (5Y)2.24
EPS Next 2Y3.99%
EPS Next 3Y5.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.90%, TD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.81, 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.9% |
5.2 History
The dividend of TD has a limited annual growth rate of 5.03%.
TD has paid a dividend for at least 10 years, which is a reliable track record.
TD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)5.03%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
56.19% of the earnings are spent on dividend by TD. This is a bit on the high side, but may be sustainable.
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.
DP56.19%
EPS Next 2Y3.99%
EPS Next 3Y5.05%
TORONTO-DOMINION BANK
NYSE:TD (5/3/2024, 7:21:10 PM)
After market: 55.06 +0.4 (+0.73%)54.66
-3.42 (-5.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap96.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 8.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)16.7
PEG (5Y)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 10.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 22.07% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-8.92%
EPS 3Y14.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.01%
Revenue growth 3Y4.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y