TSX:TD

Stock Analysis Report

Toronto-Dominion Bank

Executive Summary

The Toronto-Dominion Bank, together with its subsidiaries, provides various personal and commercial banking products and services in Canada and the United States.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Toronto-Dominion Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

TD

0.9%

CA Banks

0.2%

CA Market


1 Year Return

1.2%

TD

3.5%

CA Banks

2.4%

CA Market

Return vs Industry: TD underperformed the Canadian Banks industry which returned 3.5% over the past year.

Return vs Market: TD matched the Canadian Market which returned 2.4% over the past year.


Shareholder returns

TDIndustryMarket
7 Day0.8%0.9%0.2%
30 Day-2.9%-0.6%-3.3%
90 Day-3.8%1.7%-1.8%
1 Year5.3%1.2%8.0%3.5%6.0%2.4%
3 Year37.8%23.6%33.8%19.1%14.2%4.0%
5 Year65.1%37.1%53.2%25.4%27.2%8.6%

Price Volatility Vs. Market

How volatile is Toronto-Dominion Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Toronto-Dominion Bank undervalued compared to its fair value and its price relative to the market?

9.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TD (CA$74.33) is trading below our estimate of fair value (CA$82)

Significantly Below Fair Value: TD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TD is poor value based on its PE Ratio (11.8x) compared to the Banks industry average (11.1x).

PE vs Market: TD is good value based on its PE Ratio (11.8x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: TD is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: TD is overvalued based on its PB Ratio (1.7x) compared to the CA Banks industry average (1.4x).


Next Steps

Future Growth

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

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TD's forecast earnings growth (3.9% per year) is above the savings rate (1.9%).

Earnings vs Market: TD's earnings (3.9% per year) are forecast to grow slower than the Canadian market (12.9% per year).

High Growth Earnings: TD's earnings are forecast to grow, but not significantly.

Revenue vs Market: TD's revenue (4.1% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: TD's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TD's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

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

9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TD's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: TD's earnings growth over the past year (6.8%) is below its 5-year average (9.9% per year).

Earnings vs Industry: TD earnings growth over the past year (6.8%) underperformed the Banks industry 6.8%.


Return on Equity

High ROE: TD's Return on Equity (13.6%) is considered low.


Return on Assets

ROA vs Industry: TD has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate TD's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: TD has a low level of unsold assets or inventory.

Debt Coverage by Assets: TD's debt is covered by short term assets (assets are 1.771230x debt).


Financial Institutions Analysis

Asset Level: TD's level of assets compared to its equity is moderate.

Allowance for Bad Loans: TD has a sufficient allowance for bad loans.

Low Risk Liabilities: TD's liabilities are made up of primarily low risk sources of funding.

Loan Level: TD has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TD's loans are broadly funded by customer deposits.

Level of Bad Loans: TD has an appropriate level of bad loans (0.43%)


Next Steps

Dividend

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

3.98%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%2.0%markettop25%6.0%industryaverage4.2%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TD's dividend (3.98%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: TD's dividend (3.98%) is low compared to the top 25% of dividend payers in the Canadian market (5.96%).

Stable Dividend: TD's dividends per share have been stable in the past 10 years.

Growing Dividend: TD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.7%), TD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TD's dividends in 3 years are forecast to be well covered by earnings (45.1% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Bharat Masrani (62yo)

4.9yrs

Tenure

CA$15,316,065

Compensation

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 Ban ...


CEO Compensation Analysis

Compensation vs. Market: Bharat's total compensation ($USD11.69M) is about average for companies of similar size in the Canadian market ($USD7.06M).

Compensation vs Earnings: Bharat's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

Experienced Management: TD's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

63yo

Average Age

Experienced Board: TD's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Michael Rhodes (53yo)

    Group Head of Innovation

    • Tenure: 1.9yrs
  • Bharat Masrani (62yo)

    Group President

    • Tenure: 4.9yrs
    • Compensation: CA$15.32m
  • Bob Dorrance

    Group Head of Wholesale Banking

    • Tenure: 13.9yrs
    • Compensation: CA$8.92m
  • Teri Currie

    Group Head of Canadian Personal Banking

    • Tenure: 8.9yrs
    • Compensation: CA$4.78m
  • Riaz Ahmed

    Group Head & CFO

    • Tenure: 3.8yrs
    • Compensation: CA$4.33m
  • Greg Braca

    Group Head of U.S. Banking

    • Tenure: 1.9yrs
    • Compensation: CA$5.78m
  • Jeff Henderson

    Chief Information Officer & Executive VP

    • Tenure: 0yrs
  • Ellen Patterson

    Group Head & General Counsel

    • Tenure: 1.9yrs
  • Gillian Manning

    Vice President & Head of IR

    • Tenure: 0yrs
  • Valerie Gillis

    Chief Accountant & Senior VP of Finance

    • Tenure: 0yrs

Board Members

  • William Bennett (73yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: CA$629.10k
  • George Watson (71yo)

    Member of Advisory Board

    • Tenure: 0yrs
  • Bharat Masrani (62yo)

    Group President

    • Tenure: 4.9yrs
    • Compensation: CA$15.32m
  • Karen Maidment (60yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: CA$285.00k
  • Amy Brinkley (63yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: CA$418.67k
  • Irene Miller (66yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: CA$242.50k
  • Brian Levitt (71yo)

    Non-Executive Chairman of the Board

    • Tenure: 8.8yrs
    • Compensation: CA$445.00k
  • Nadir Mohamed (62yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: CA$220.00k
  • Brian Ferguson (62yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: CA$242.50k
  • Alan MacGibbon (63yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: CA$607.73k

Company Information

The Toronto-Dominion Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Toronto-Dominion Bank
  • Ticker: TD
  • Exchange: TSX
  • Founded: 1855
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CA$135.224b
  • Shares outstanding: 1.82b
  • Website: https://www.td.com

Number of Employees


Location

  • The Toronto-Dominion Bank
  • Toronto-Dominion Centre
  • King Street West and Bay Street
  • Toronto
  • Ontario
  • M5K 1A2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TDNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
TDBDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
TDTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
0VL8LSE (London Stock Exchange)YesCommon SharesGBCADDec 1972
TD.PFBTSX (The Toronto Stock Exchange)5YR RST PFD SR 3CACADAug 2014
TD.PFDTSX (The Toronto Stock Exchange)PFD-7 CONVCACADMar 2015
TD.PFFTSX (The Toronto Stock Exchange)PFD SER11 4.9%CACADJul 2015
TD.PFGTSX (The Toronto Stock Exchange)PFD SHS SER 12CACADJan 2016
TNTO.FOTCPK (Pink Sheets LLC)PFD SHS SER 12USUSDJan 2016
TD.PFHTSX (The Toronto Stock Exchange)4.85 PFD SR 14CACADSep 2016
TD.PFITSX (The Toronto Stock Exchange)PFD SER 16CACADJul 2017
TD.PFKTSX (The Toronto Stock Exchange)PFD SHS NCM 20CACADSep 2018
TD.PFLTSX (The Toronto Stock Exchange)NON CUM PFD 22CACADJan 2019
TD.PFMTSX (The Toronto Stock Exchange)NON CUM PFD 24CACADJun 2019

Biography

The Toronto-Dominion Bank, together with its subsidiaries, provides various personal and commercial banking products and services in Canada and the United States. The company operates through three segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:43
End of Day Share Price2019/10/21 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.