Toronto-Dominion Bank
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 78 days ago. More info.
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TD Share Price and Events
Value
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Toronto-Dominion Bank.
| 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$42.65 * 15.99% |
CA$6.82 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 10 analysts. | CA$42.65 |
| 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.
| 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 | 0.44 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.438 (1 + (1- 26.5%) (150.49%)) |
0.992 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.99 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.34% + (0.992 * 7.66%) |
9.94% |
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.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (15.99% – 9.94%) * CA$42.65) |
CA$2.58 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= CA$2.58 / (9.94% - 2.34%) |
CA$33.95 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= CA$42.65 + CA$33.95 |
CA$76.61 |
| Calculation | Result | |
|---|---|---|
| Value per share (CAD) | From above. | CA$76.61 |
| Current discount | Discount to share price of
CA$76.14
= -1 x (CA$76.14 - CA$76.61) / CA$76.61 |
0.6% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- 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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings () in CAD | CA$5.67 |
| TSX:TD Share Price ** | TSX (2018-07-17) in CAD | CA$76.14 |
| Canada Banks Industry PE Ratio | Median Figure of 10 Publicly-Listed Banks Companies | 12.75x |
| Canada Market PE Ratio | Median Figure of 636 Publicly-Listed Companies | 16.52x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Toronto-Dominion Bank.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = TSX:TD Share Price ÷ EPS (both in CAD) = 76.14 ÷ 5.67 |
13.44x |
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?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 13.44x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts |
7.5%per year |
| Canada Banks Industry PEG Ratio | Median Figure of 9 Publicly-Listed Banks Companies | 2.14x |
| Canada Market PEG Ratio | Median Figure of 315 Publicly-Listed Companies | 1.13x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 13.44x ÷ 7.5% |
1.8x |
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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings () in CAD | CA$38.26 |
| TSX:TD Share Price * | TSX (2018-07-17) in CAD | CA$76.14 |
| Canada Banks Industry PB Ratio | Median Figure of 10 Publicly-Listed Banks Companies | 1.67x |
| Canada Market PB Ratio | Median Figure of 2,541 Publicly-Listed Companies | 1.78x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = TSX:TD Share Price ÷ Book Value per Share (both in CAD) = 76.14 ÷ 38.26 |
1.99x |
* 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.
Value checks
We assess Toronto-Dominion Bank's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check) 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
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!
Earnings growth vs Low Risk Savings
- 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
| Data Point | Source | Value (per year) |
|---|---|---|
| TSX:TD Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts | 7.5% |
| TSX:TD Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts | 5% |
| Canada Banks Industry Earnings Growth Rate | Market Cap Weighted Average | 6.4% |
| Canada Banks Industry Revenue Growth Rate | Market Cap Weighted Average | 5.4% |
| Canada Market Earnings Growth Rate | Market Cap Weighted Average | 14.2% |
| Canada Market Revenue Growth Rate | Market Cap Weighted Average | 6% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 12 Analyst Estimates (S&P Global) | See Below |
| Date (Data in CAD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-10-31 | 39,670 | 1 | ||
| 2019-10-31 | 38,854 | 11,812 | 8 | |
| 2018-10-31 | 36,863 | 11,020 | 8 |
| Date (Data in CAD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 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 | -7,158 | 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 |
| 2015-07-31 | 29,286 | -100,249 | 7,716 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months 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 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CAD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-10-31 | 6.84 | 6.84 | 6.84 | 1.00 |
| 2019-10-31 | 6.52 | 6.74 | 5.91 | 10.00 |
| 2018-10-31 | 5.88 | 6.06 | 5.67 | 10.00 |
| Date (Data in CAD Millions) | EPS * |
|---|---|
| 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 |
| 2015-07-31 | 4.18 |
*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%).
Future performance checks
We assess Toronto-Dominion Bank's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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?
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
Past Earnings growth analysis
- 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 exceeds its 5-year average (11.1% vs 9.4%)
- Toronto-Dominion Bank's earnings growth has exceeded the CA Banks industry average in the past year (11.1% vs 6.3%).
Earnings and Revenue History
All data from Toronto-Dominion Bank Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CAD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 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 | |
| 2011-07-31 | 19,462.00 | 5,192.00 | 10,356.00 |
*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 less efficiently than the CA Banks industry average last year based on Return on Assets.
- Toronto-Dominion Bank has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Toronto-Dominion Bank's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Toronto-Dominion Bank has a total score of 4/6, 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
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.
Balance sheet
Assets
Liabilities and shares
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.
All data from Toronto-Dominion Bank Company Filings, last reported 2 months ago.
| Date (Data in CAD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 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 |
| 2011-07-31 | 44,727.00 | 100,577.00 | 204,044.00 |
BANK ANALYSIS
This company is a bank or financial institution, which is analysed accordingly below.
- 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%).
Financial health checks
We assess Toronto-Dominion Bank's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Toronto-Dominion Bank has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
CA$2,000 of
Toronto-Dominion Bank
shares you are expected to receive
CA$70
in your first year as a dividend.
Dividend Amount
- Toronto-Dominion Bank's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.7%).
- Toronto-Dominion Bank's dividend is below the markets top 25% of dividend payers in Canada (5.22%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 12 Analyst Estimates (S&P Global) | See Below |
| Canada Banks Industry Average Dividend Yield | Market Cap Weighted Average of 10 Stocks | 3.8% |
| Canada Market Average Dividend Yield | Market Cap Weighted Average of 352 Stocks | 3.1% |
| Canada Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| Canada Bottom 25% Dividend Yield | 25th Percentile | 1.7% |
| Canada Top 25% Dividend Yield | 75th Percentile | 5.2% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in CA$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2020-10-31 | 3.13 | 3.00 |
| 2019-10-31 | 2.84 | 12.00 |
| 2018-10-31 | 2.61 | 12.00 |
| Date (Data in CA$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-05-24 | 2.680 | 3.529 |
| 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 |
| 2008-08-28 | 1.220 | 4.444 |
| 2008-07-18 | 1.180 | 3.862 |
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 net profit (2.3x coverage).
- Dividends after 3 years are expected to be well covered by net profit (2.3x coverage).
Income/ dividend checks
We assess Toronto-Dominion Bank's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| COMPENSATION | CA$12,437,320 |
| AGE | 61 |
| TENURE AS CEO | 3.7 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 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:
- The tenure for the Toronto-Dominion Bank management team is about average.
Management Team
Bharat Masrani
Group President
CA$12M
61
3.7 yrs
Riaz Ahmed
Group Head & CFO
CA$4M
2.5 yrs
Bob Dorrance
Group Head of Wholesale Banking
CA$9M
12.7 yrs
Teri Currie
Group Head of Canadian Personal Banking
CA$4M
7.7 yrs
Greg Braca
Group Head of U.S. Banking
CA$5M
0.7 yrs
Michael Rhodes
Group Head of Innovation
52
0.7 yrs
Jeff Henderson
Chief Information Officer & Executive VP
Gillian Manning
Vice President & Head of IR
Ellen Patterson
Group Head & General Counsel
0.7 yrs
Theresa McLaughlin
Chief Marketing Officer & Executive VP
Board of Directors Tenure
Average tenure and age of the Toronto-Dominion Bank board of directors in years:
- The tenure for the Toronto-Dominion Bank board of directors is about average.
Board of Directors
Brian Levitt
Non-Executive Chairman of the Board
CA$330K
70
7.5 yrs
Bharat Masrani
Group President
CA$12M
61
4.3 yrs
William Bennett
Director
CA$624K
72
14.2 yrs
Karen Maidment
Director
CA$280K
59
6.8 yrs
Alan MacGibbon
Director
CA$587K
62
4.3 yrs
Brian Ferguson
Director
CA$235K
61
3.3 yrs
George Watson
Member of Advisory Board
70
Irene Miller
Director
CA$238K
65
12.2 yrs
Nadir Mohamed
Director
CA$215K
61
10.3 yrs
Amy Brinkley
Director
CA$305K
62
7.8 yrs
Who owns this company?
Management checks
We assess Toronto-Dominion Bank's management by checking for:- 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)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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
Simply Wall St News
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 - – Full articleShould 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 - – Full articleWhy 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 - – Full articleWhy 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 - – Full articleReal 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 - – Full articleDoes 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 - – Full articleHow Does The Toronto-Dominion Bank's (TSE:TD) Earnings Growth Stack Up Against Industry Performance?
Today I will take a look at The Toronto-Dominion Bank's (TSX:TD) most recent earnings update (31 January 2018) and compare these latest figures against its performance over the past few years, as well as how the rest of the banks industry performed. … Check out our latest analysis for Toronto-Dominion Bank How Did TD's Recent Performance Stack Up Against Its Past? … Given that these figures may be relatively myopic, I’ve estimated an annualized five-year value for TD's net income, which stands at CA$7.46B This suggests that, on average, Toronto-Dominion Bank has been able to consistently raise its net income over the last couple of years as well.
Simply Wall St - – Full articleCan The Toronto-Dominion Bank (TSE:TD) Improve Your Portfolio Returns?
A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Check out our latest analysis for Toronto-Dominion Bank An interpretation of TD's beta Toronto-Dominion Bank's beta of 0.72 indicates that the stock value will be less variable compared to the whole stock market. … TD’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio.
Simply Wall St - – Full articleCan The Toronto-Dominion Bank (TSE:TD) Continue To Outperform Its Industry?
View our latest analysis for Toronto-Dominion Bank Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) weighs Toronto-Dominion Bank’s profit against the level of its shareholders’ equity. … For now, let’s just look at the cost of equity number for Toronto-Dominion Bank, which is 9.93%. … Given a positive discrepancy of 4.20% between return and cost, this indicates that Toronto-Dominion Bank pays less for its capital than what it generates in return, which is a sign of capital efficiency.
Simply Wall St - – Full articleHow Does The Toronto-Dominion Bank (TSE:TD) Compare To The Financial Sector?
See our latest analysis for Toronto-Dominion Bank What’s the catalyst for Toronto-Dominion Bank's sector growth? … Toronto-Dominion Bank leads the pack with its impressive earnings growth of 12.26% over the past year. … In terms of returns, Toronto-Dominion Bank generated 14.13% in the past year, in-line with its industry average.
Simply Wall St - – Full articleCompany 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$140,434,138,880 | |
| 1,845,632,000 | |
| 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
Industry
| Diversified Banks | |
| Banks |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2018/07/17 21:28 |
| End of day share price update: | 2018/07/17 00:00 |
| Last estimates confirmation: | 2018/07/13 |
| Last earnings update: | 2018/04/30 |
| 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.
