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Toronto-Dominion Bank

TSX:TD
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TD
TSX
CA$146B
Market Cap
  1. Home
  2. CA
  3. Banks
Company description

The Toronto-Dominion Bank, together with its subsidiaries, provides various personal and commercial banking products and services in Canada and the United States. The last earnings update was 293 days ago. More info.


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TD Share Price and Events
Price Volatility
TD
Industry
5yr Volatility vs Market

Value

 Is Toronto-Dominion Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Toronto-Dominion Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Toronto-Dominion Bank.

TSX:TD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 12 analysts.
= Stable Book Value * Return on Equity
= CA$43.18 * 1618.6%
CA$6.99
Book Value of Equity per Share Weighted future Book Value estimates from 10 analysts. CA$43.18
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year CA Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:TD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 7.7%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.45
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.448 (1 + (1- 26.5%) (142.69%))
0.982
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.34% + (0.982 * 7.66%)
9.86%

Discounted Cash Flow Calculation for TSX:TD using Excess Returns Model Model

The calculations below outline how an intrinsic value for Toronto-Dominion Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

TSX:TD Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (1618.6% – 9.86%) * CA$43.18)
CA$2.73
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CA$2.73 / (9.86% - 2.34%)
CA$36.32
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CA$43.18 + CA$36.32
CA$79.5
TSX:TD Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$79.50
Current discount Discount to share price of CA$79.31
= -1 x (CA$79.31 - CA$79.50) / CA$79.50
0.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Toronto-Dominion Bank is available for.
Intrinsic value
0%
Share price is CA$79.31 vs Future cash flow value of CA$79.5
Current Discount Checks
For Toronto-Dominion Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Toronto-Dominion Bank's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Toronto-Dominion Bank's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Toronto-Dominion Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Toronto-Dominion Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:TD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-07-31) in CAD CA$5.86
TSX:TD Share Price ** TSX (2018-09-19) in CAD CA$79.31
Canada Banks Industry PE Ratio Median Figure of 9 Publicly-Listed Banks Companies 11.21x
Canada Market PE Ratio Median Figure of 539 Publicly-Listed Companies 15.99x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Toronto-Dominion Bank.

TSX:TD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:TD Share Price ÷ EPS (both in CAD)

= 79.31 ÷ 5.86

13.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Toronto-Dominion Bank is overvalued based on earnings compared to the CA Banks industry average.
  • Toronto-Dominion Bank is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Toronto-Dominion Bank's expected growth come at a high price?
Raw Data
TSX:TD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
8.4%per year
Canada Banks Industry PEG Ratio Median Figure of 8 Publicly-Listed Banks Companies 1.93x
Canada Market PEG Ratio Median Figure of 271 Publicly-Listed Companies 1.05x

*Line of best fit is calculated by linear regression .

TSX:TD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.53x ÷ 8.4%

1.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Toronto-Dominion Bank is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Toronto-Dominion Bank's assets?
Raw Data
TSX:TD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-07-31) in CAD CA$39.34
TSX:TD Share Price * TSX (2018-09-19) in CAD CA$79.31
Canada Banks Industry PB Ratio Median Figure of 9 Publicly-Listed Banks Companies 1.7x
Canada Market PB Ratio Median Figure of 2,330 Publicly-Listed Companies 1.68x
TSX:TD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:TD Share Price ÷ Book Value per Share (both in CAD)

= 79.31 ÷ 39.34

2.02x

* Primary Listing of Toronto-Dominion Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Toronto-Dominion Bank is overvalued based on assets compared to the CA Banks industry average.
X
Value checks
We assess Toronto-Dominion Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Toronto-Dominion Bank has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Toronto-Dominion Bank expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Toronto-Dominion Bank expected to grow at an attractive rate?
  • Toronto-Dominion Bank's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Toronto-Dominion Bank's earnings growth is positive but not above the Canada market average.
  • Toronto-Dominion Bank's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:TD Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:TD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 8.4%
TSX:TD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 4.9%
Canada Banks Industry Earnings Growth Rate Market Cap Weighted Average 7.5%
Canada Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 15.7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:TD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:TD Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-10-31 40,174 3
2019-10-31 38,610 12,202 9
2018-10-31 36,676 11,310 9
TSX:TD Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-07-31 35,594 -44,810 10,784
2018-04-30 35,051 -845 10,449
2018-01-31 34,113 5,287 10,030
2017-10-31 33,933 -5,280 10,203
2017-07-31 33,438 -10,019 9,807
2017-04-30 32,802 -73,305 9,407
2017-01-31 32,504 -6,646 8,967
2016-10-31 31,985 -37,592 8,680
2016-07-31 31,326 -10,176 8,233
2016-04-30 30,750 -26,787 8,153
2016-01-31 30,459 -50,622 7,973
2015-10-31 29,743 -73,139 7,813

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Toronto-Dominion Bank's earnings are expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).
  • Toronto-Dominion Bank's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:TD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Toronto-Dominion Bank Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TD Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-10-31 7.09 7.15 7.03 2.00
2019-10-31 6.69 6.99 6.13 10.00
2018-10-31 6.03 6.20 5.94 10.00
TSX:TD Past Financials Data
Date (Data in CAD Millions) EPS *
2018-07-31 5.86
2018-04-30 5.67
2018-01-31 5.43
2017-10-31 5.51
2017-07-31 5.29
2017-04-30 5.07
2017-01-31 4.84
2016-10-31 4.68
2016-07-31 4.44
2016-04-30 4.40
2016-01-31 4.31
2015-10-31 4.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Toronto-Dominion Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Toronto-Dominion Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Toronto-Dominion Bank has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Toronto-Dominion Bank performed over the past 5 years?

  • Toronto-Dominion Bank's last earnings update was 293 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Toronto-Dominion Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Toronto-Dominion Bank's year on year earnings growth rate has been positive over the past 5 years.
  • Toronto-Dominion Bank's 1-year earnings growth is less than its 5-year average (10% vs 10.3%)
  • Toronto-Dominion Bank's earnings growth has not exceeded the CA Banks industry average in the past year (10% vs 10%).
Earnings and Revenue History
Toronto-Dominion Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Toronto-Dominion Bank Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TD Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-07-31 35,594.00 10,784.00 14,827.00
2018-04-30 35,051.00 10,449.00 14,624.00
2018-01-31 34,113.00 10,030.00 14,615.00
2017-10-31 33,933.00 10,203.00 14,695.00
2017-07-31 33,438.00 9,807.00 14,665.00
2017-04-30 32,802.00 9,407.00 14,467.00
2017-01-31 32,504.00 8,967.00 14,319.00
2016-10-31 31,985.00 8,680.00 14,042.00
2016-07-31 31,326.00 8,233.00 13,838.00
2016-04-30 30,750.00 8,153.00 13,732.00
2016-01-31 30,459.00 7,973.00 13,538.00
2015-10-31 29,743.00 7,813.00 13,414.00
2015-07-31 29,286.00 7,716.00 13,365.00
2015-04-30 28,888.00 7,558.00 13,225.00
2015-01-31 28,547.00 7,673.00 13,060.00
2014-10-31 28,404.00 7,633.00 12,557.00
2014-07-31 27,971.00 7,486.00 12,584.00
2014-04-30 27,408.00 6,890.00 12,334.00
2014-01-31 26,555.00 6,610.00 12,158.00
2013-10-31 25,628.00 6,350.00 11,929.00
2013-07-31 26,782.00 6,321.00 11,804.00
2013-04-30 25,577.00 6,490.00 11,596.00
2013-01-31 24,749.00 6,477.00 11,401.00
2012-10-31 23,805.00 6,160.00 11,333.00
2012-07-31 21,326.00 6,164.00 11,075.00
2012-04-30 20,927.00 5,956.00 10,903.00
2012-01-31 20,372.00 5,677.00 10,720.00
2011-10-31 22,350.00 5,761.00 10,567.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Toronto-Dominion Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Toronto-Dominion Bank used its assets more efficiently than the CA Banks industry average last year based on Return on Assets.
  • Toronto-Dominion Bank has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Toronto-Dominion Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Toronto-Dominion Bank has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Toronto-Dominion Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Toronto-Dominion Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Toronto-Dominion Bank Company Filings, last reported 1 month ago.

TSX:TD Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-07-31 77,687.00 207,912.00 341,121.00
2018-04-30 76,662.00 211,342.00 350,856.00
2018-01-31 73,174.00 207,657.00 345,144.00
2017-10-31 75,190.00 209,166.00 345,949.00
2017-07-31 73,464.00 209,255.00 333,020.00
2017-04-30 76,239.00 202,465.00 347,839.00
2017-01-31 73,302.00 187,388.00 322,596.00
2016-10-31 74,214.00 186,697.00 315,172.00
2016-07-31 71,204.00 203,881.00 339,099.00
2016-04-30 67,823.00 202,818.00 311,122.00
2016-01-31 71,674.00 204,980.00 339,886.00
2015-10-31 67,028.00 192,740.00 307,596.00
2015-07-31 65,965.00 205,554.00 338,477.00
2015-04-30 61,597.00 186,190.00 305,762.00
2015-01-31 62,629.00 205,666.00 347,649.00
2014-10-31 56,231.00 167,264.00 286,084.00
2014-07-31 54,755.00 156,972.00 272,294.00
2014-04-30 53,769.00 153,437.00 258,721.00
2014-01-31 53,909.00 158,859.00 277,425.00
2013-10-31 51,383.00 149,522.00 247,857.00
2013-07-31 50,918.00 153,588.00 235,501.00
2013-04-30 51,159.00 164,904.00 246,366.00
2013-01-31 49,780.00 171,062.00 257,012.00
2012-10-31 48,105.00 178,895.00 249,789.00
2012-07-31 48,067.00 168,502.00 247,275.00
2012-04-30 45,919.00 166,157.00 233,742.00
2012-01-31 45,548.00 164,476.00 230,787.00
2011-10-31 44,004.00 162,438.00 214,305.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Toronto-Dominion Bank has an acceptable proportion of non-loan assets held.
  • Toronto-Dominion Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Toronto-Dominion Bank are broadly funded by customer deposits.
  • Toronto-Dominion Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Toronto-Dominion Bank has a sufficient allowance for bad loans.
  • Toronto-Dominion Bank has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Toronto-Dominion Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Toronto-Dominion Bank has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Toronto-Dominion Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.38%
Current annual income from Toronto-Dominion Bank dividends. Estimated to be 3.52% next year.
If you bought CA$2,000 of Toronto-Dominion Bank shares you are expected to receive CA$68 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Toronto-Dominion Bank's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.79%).
  • Toronto-Dominion Bank's dividend is below the markets top 25% of dividend payers in Canada (5.23%).
Upcoming dividend payment

Purchase Toronto-Dominion Bank on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:TD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Canada Banks Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 3.8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 298 Stocks 3.3%
Canada Minimum Threshold Dividend Yield 10th Percentile 0.9%
Canada Bottom 25% Dividend Yield 25th Percentile 1.8%
Canada Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:TD Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-10-31 3.15 4.00
2019-10-31 2.85 12.00
2018-10-31 2.61 12.00
TSX:TD Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2018-08-30 2.680 3.388
2018-05-24 2.680 3.496
2017-11-30 2.400 3.275
2017-08-31 2.400 3.381
2017-05-25 2.400 3.704
2016-12-01 2.200 3.315
2016-08-25 2.200 3.685
2016-05-26 2.200 3.887
2016-02-25 2.200 3.974
2015-12-03 2.040 3.894
2015-08-27 2.040 3.835
2015-05-28 2.040 3.855
2015-02-26 2.040 3.710
2014-12-04 1.880 3.539
2014-08-28 1.880 3.369
2014-05-26 1.839 3.372
2014-02-27 1.880 3.644
2013-08-29 1.700 3.564
2013-05-23 1.620 3.806
2013-02-28 1.620 3.902
2012-12-06 1.540 3.717
2012-08-30 1.540 3.781
2012-05-24 1.440 3.633
2012-03-01 1.440 3.504
2011-12-01 1.360 3.545
2011-09-01 1.360 3.717
2011-05-26 1.320 3.377
2011-03-03 1.320 3.167
2010-12-02 1.220 3.222
2010-09-02 1.220 3.279
2010-05-27 1.220 3.411
2010-03-04 1.220 3.291
2009-12-03 1.220 3.762
2009-08-27 1.220 3.684
2009-05-28 1.220 4.069
2009-02-25 1.220 5.473
2008-12-04 1.220 6.028
2008-09-22 1.220 4.589

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Toronto-Dominion Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Toronto-Dominion Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Toronto-Dominion Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Toronto-Dominion Bank has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Toronto-Dominion Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bharat Masrani, image provided by Google.
Bharat Masrani
COMPENSATION CA$12,437,320
AGE 61
TENURE AS CEO 3.8 years
CEO Bio

Mr. Bharat B. Masrani has been Chief Executive Officer and Group President at The Toronto-Dominion Bank since November 1, 2014. Mr. Masrani served as the Chief Operating Officer of The Toronto-Dominion Bank since July 1, 2013 until November 1, 2014. He served as an Executive Vice President and Risk Management Officer of Toronto Office of TD Mortgage Investment Corp. He served as Chief Executive Officer of TD Bank US Holding Company from March 1, 2007 to July 01, 2013 and as its President from January 1, 2007 to July 01, 2013. He was the Chief Executive Officer and President at Commerce Bank, National Association. He served as Chief Executive Officer and President of TD Bank, N.A. He served as Chief Executive Officer and President of TD Bank until July 1, 2013. He served as a Group Head of U.S. Personal & Commercial Banking at The Toronto-Dominion Bank since 2008 until July 1, 2013. He served as Chief Risk Officer of The Toronto-Dominion Bank since November 1, 2005. He served as an Executive Vice President - Risk Management at The Toronto-Dominion Bank. Prior to October 2002, he served as an Executive Vice President at The Toronto-Dominion Bank and President and Chief Executive Officer of TD Waterhouse International. Prior to May 2002, he served as Senior Vice President of The Toronto-Dominion Bank and President and Chief Executive Officer of TD Waterhouse International. Prior to January 2002, he served as Vice Chair, President and Chief Executive Officer of TD Waterhouse Europe and Senior Vice President of The Toronto-Dominion Bank. He began his banking career with TD Bank Group in 1987 as a commercial lending trainee and during his tenure with TD Bank Group he has served in various leadership positions, including senior vice president and chief executive officer of TD Waterhouse Investor Services in Europe, senior vice president of corporate finance and co-head in Europe, vice president and country head for India and vice president and head of corporate banking for Canada. He serves as the Chairman of the Board of TD Bank USA, National Association and Td Bank Us Holding Company. He has been a Trustee at The Hospital for Sick Children since 2018. He serves as Vice Chairman of TD Waterhouse Group Inc. He has been Vice Chairman of Toronto-dominion Bank since November 1, 2005. He served as Vice Chairman of TD Ameritrade, Inc. He served as Vice Chairman and Chief Risk Officer of TD Bank Financial Group from October 26, 2005 to September 2006. Previous to his role at TD Bank, he served as Vice Chair and Chief Risk Officer of TD Bank Group, a position he held from May 2003. He serves as Chairman of the Board at TD Bank, N.A. He has been a Non-Independent Director of The Toronto-Dominion Bank since April 2014. He has been a Director of TD Ameritrade Holding Corporation since December 27, 2013 and Td Banknorth Inc. since October 26, 2005. He serves as Vice Chairman of the Board at TD Ameritrade Holding Corporation since 2015. He serves as a Director of TD Bank, N.A. He has been a Director of TD Bank US Holding Company since October 26, 2005. He served as a Director of The Risk Management Association. He served as Member of Advisory Council of Federal Reserve Bank of Philadelphia, Inc. since 2011. Mr. Masrani holds Bachelor of Administrative Studies degree from York University in 1978 and a master’s degree in business administration from the Schulich School of Business, York University in 1979. For his achievements in business and the community, Bharat was awarded an Honorary Doctor of Laws degree from the Schulich School of Business in 2017.

CEO Compensation
  • Bharat's compensation has increased by more than 20% in the past year.
  • Bharat's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure of the Toronto-Dominion Bank management team in years:

2.7
Average Tenure
  • The tenure for the Toronto-Dominion Bank management team is about average.
Management Team

Bharat Masrani

TITLE
Group President
COMPENSATION
CA$12M
AGE
61
TENURE
3.8 yrs

Riaz Ahmed

TITLE
Group Head & CFO
COMPENSATION
CA$4M
TENURE
2.7 yrs

Bob Dorrance

TITLE
Group Head of Wholesale Banking
COMPENSATION
CA$9M
TENURE
12.8 yrs

Teri Currie

TITLE
Group Head of Canadian Personal Banking
COMPENSATION
CA$4M
TENURE
7.8 yrs

Greg Braca

TITLE
Group Head of U.S. Banking
COMPENSATION
CA$5M
TENURE
0.8 yrs

Michael Rhodes

TITLE
Group Head of Innovation
AGE
52
TENURE
0.8 yrs

Jeff Henderson

TITLE
Chief Information Officer & Executive VP

Gillian Manning

TITLE
Vice President & Head of IR

Ellen Patterson

TITLE
Group Head & General Counsel
TENURE
0.8 yrs

Theresa McLaughlin

TITLE
Chief Marketing Officer & Executive VP
Board of Directors Tenure

Average tenure and age of the Toronto-Dominion Bank board of directors in years:

7.7
Average Tenure
62
Average Age
  • The tenure for the Toronto-Dominion Bank board of directors is about average.
Board of Directors

Brian Levitt

TITLE
Non-Executive Chairman of the Board
COMPENSATION
CA$330K
AGE
70
TENURE
7.7 yrs

Bharat Masrani

TITLE
Group President
COMPENSATION
CA$12M
AGE
61
TENURE
4.4 yrs

William Bennett

TITLE
Director
COMPENSATION
CA$624K
AGE
72
TENURE
14.3 yrs

Karen Maidment

TITLE
Director
COMPENSATION
CA$280K
AGE
59
TENURE
7 yrs

Alan MacGibbon

TITLE
Director
COMPENSATION
CA$587K
AGE
62
TENURE
4.4 yrs

Brian Ferguson

TITLE
Director
COMPENSATION
CA$235K
AGE
61
TENURE
3.5 yrs

George Watson

TITLE
Member of Advisory Board
AGE
70

Irene Miller

TITLE
Director
COMPENSATION
CA$238K
AGE
65
TENURE
12.3 yrs

Nadir Mohamed

TITLE
Director
COMPENSATION
CA$215K
AGE
61
TENURE
10.4 yrs

Amy Brinkley

TITLE
Director
COMPENSATION
CA$305K
AGE
62
TENURE
8 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess Toronto-Dominion Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Toronto-Dominion Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Should You Be Tempted To Sell The Toronto-Dominion Bank (TSE:TD) At Its Current PE Ratio?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … While this might not seem positive, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … View our latest analysis for Toronto-Dominion Bank

Simply Wall St -

Should You Be Concerned About The Toronto-Dominion Bank’s (TSE:TD) Liquidity?

As these large financial institutions revert back to health after the 2008 Financial Crisis, we are seeing an increase in market confidence in these “too-big-to-fail” banking stocks. … Following the crisis, a set of reforms termed Basel III was enforced to bolster risk management, regulation, and supervision in the financial services industry. … These reforms target bank level regulation and aims to improve the banking sector’s ability to absorb shocks arising from economic stress which could expose financial institutions to vulnerabilities.

Simply Wall St -

Should You Be Concerned About The Toronto-Dominion Bank’s (TSE:TD) Risks?

As a CA$141.84b market capitalisation company operating in the financial services sector, The Toronto-Dominion Bank (TSE:TD) has benefited from strong economic growth and improved credit quality as a result of post-GFC recovery. … Growth stimulates demand for loans and impacts a borrower’s ability to repay which directly affects the level of risk Toronto-Dominion Bank takes on. … It is relevant to understand a bank’s level of risky assets on its accounts as it affects the attractiveness of its stock as an investment.

Simply Wall St -

Is The Toronto-Dominion Bank's (TSE:TD) CEO Overpaid Relative To Its Peers?

Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability

Simply Wall St -

Should Income Investors Buy The Toronto-Dominion Bank (TSE:TD) Before Its Ex-Dividend?

Important news for shareholders and potential investors in The Toronto-Dominion Bank (TSE:TD): The dividend payment of CA$0.67 per share will be distributed into shareholder on 31 July 2018, and the stock will begin trading ex-dividend at an earlier date, 09 July 2018. … Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

Should You Expect The Toronto-Dominion Bank (TSE:TD) To Continue Delivering An ROE Of 14.02%?

and want a simplistic look at the return on The Toronto-Dominion Bank (TSE:TD) stock. … With an ROE of 14.02%, The Toronto-Dominion Bank (TSE:TD) returned in-line to its own industry which delivered 13.89% over the past year. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden

Simply Wall St -

Why The Toronto-Dominion Bank (TSE:TD) Should Have A Place In Your Portfolio

Attractive stocks have exceptional fundamentals. … In the case of The Toronto-Dominion Bank (TSE:TD), there's … , dividend-paying company with a

Simply Wall St -

Why The Toronto-Dominion Bank (TSE:TD) Is A Top Dividend Stocks

There is a lot to be liked about The Toronto-Dominion Bank (TSE:TD) as an income stock, over the past 10 years it has returned an average of 4.00% per year. … The stock currently pays out a dividend yield of 3.56%, and has a market cap of CA$138.79b. … When researching a dividend stock, I always follow the following screening criteria:

Simply Wall St -

Real Risks You Need To Know Before Investing In The Toronto-Dominion Bank (TSE:TD)

A borrower’s demand for, and ability to repay, loans is driven by economic growth which directly impacts the level of risk Toronto-Dominion Bank takes on. … Since the level of risky assets held by a bank impacts its cash flow and therefore the attractiveness of its stock as an investment, I will take you through three metrics that are insightful proxies for risk. … This indicates a prudent level of the bank's safer form of borrowing and a prudent level of risk.Next Steps: Toronto-Dominion Bank shows prudent management of risky assets and lending behaviour.

Simply Wall St -

Does The Toronto-Dominion Bank's (TSE:TD) CEO Pay Matter?

See our latest analysis for Toronto-Dominion Bank What has been the trend in TD's earnings? … Profitability of a company is a strong indication of TD's ability to generate returns on shareholders' funds through corporate activities. … Allowing for TD's size and performance, in terms of market cap and earnings, it appears that Masrani is compensated similar to the average Canadian large-cap CEO This could mean Masrani is paid a suitable level.

Simply Wall St -

Company Info

Map
Description

The Toronto-Dominion Bank, together with its subsidiaries, provides various personal and commercial banking products and services in Canada and the United States. It operates through three segments: Canadian Retail, U.S. Retail, and Wholesale Banking. The company offers personal deposits, such as checking, savings, and investment products; financing, investment, cash management, international trade, and day-to-day banking services to small, medium, and large businesses; financing options to customers at point of sale for automotive and recreational vehicle purchases through auto dealer network; credit cards; investing, advice-based, and asset management services to retail and institutional clients; and property and casualty insurance, as well as life and health insurance products. It also provides capital markets, investment banking, and corporate banking products and services, including underwriting and distribution of new debt and equity issues; providing advice on strategic acquisitions and divestitures; and trading, funding, and investment services to companies, governments, and institutions, as well as offers telephone, Internet, and mobile banking services. The company offers its products and services under the TD Canada Trust, TD Bank, and America's Most Convenient Bank brand names. It offers personal and business banking products and services to approximately 15 million customers through a network of 1,128 branches and 3,157 automated teller machines in Canada; and to approximately 8 million retail customers through a network of 1,270 stores. The company was founded in 1855 and is headquartered in Toronto, Canada.

Details
Name: The Toronto-Dominion Bank
TD
Exchange: TSX
Founded: 1855
CA$145,705,318,080
1,828,631,000
Website: http://www.td.com
Address: The Toronto-Dominion Bank
Toronto-Dominion Centre,
King Street West and Bay Street,
Toronto,
Ontario, M5K 1A2,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX TD Common Shares The Toronto Stock Exchange CA CAD 13. Dec 1972
NYSE TD Common Shares New York Stock Exchange US USD 13. Dec 1972
DB TDB Common Shares Deutsche Boerse AG DE EUR 13. Dec 1972
LSE 0VL8 Common Shares London Stock Exchange GB CAD 13. Dec 1972
TSX TD.PFB 5YR RST PFD SR 3 The Toronto Stock Exchange CA CAD 01. Aug 2014
TSX TD.PFD PFD-7 CONV The Toronto Stock Exchange CA CAD 12. Mar 2015
TSX TD.PFF PFD SER11 4.9% The Toronto Stock Exchange CA CAD 22. Jul 2015
TSX TD.PFG PFD SHS SER 12 The Toronto Stock Exchange CA CAD 15. Jan 2016
TSX TD.PFH PFD SER 14 The Toronto Stock Exchange CA CAD 08. Sep 2016
TSX TD.PFI PFD SER 16 The Toronto Stock Exchange CA CAD 14. Jul 2017
TSX TD.PFB 5YR RST PFD SR 3 The Toronto Stock Exchange CA CAD 01. Aug 2014
Number of employees
Current staff
Staff numbers
83,639
Toronto-Dominion Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/09/19 21:07
End of day share price update: 2018/09/19 00:00
Last estimates confirmation: 2018/09/07
Last earnings update: 2018/07/31
Last annual earnings update: 2017/10/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.