DB:AMT

Stock Analysis Report

Executive Summary

TD Ameritrade Holding Corporation provides securities brokerage and related technology-based financial services to retail investors and traders, and independent registered investment advisors (RIAs) in the United States.

Rewards

Trading at 19.6% below its fair value

Earnings grew by 49.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -3.7% per year for the next 3 years

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Outstanding track record and fair value.


Similar Companies

Goldman Sachs Group

NYSE:GS

Share Price & News

How has TD Ameritrade Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.0%

AMT

-0.9%

DE Capital Markets

-0.3%

DE Market


1 Year Return

2.1%

AMT

6.1%

DE Capital Markets

14.9%

DE Market

Return vs Industry: AMT underperformed the German Capital Markets industry which returned 6.1% over the past year.

Return vs Market: AMT underperformed the German Market which returned 14.9% over the past year.


Shareholder returns

AMTIndustryMarket
7 Day-3.0%-0.9%-0.3%
30 Day27.2%-0.9%-0.1%
90 Day8.6%-3.4%7.1%
1 Year4.7%2.1%8.4%6.1%18.5%14.9%
3 Year19.8%13.0%-8.1%-19.1%20.0%9.5%
5 Year75.8%59.3%-22.5%-34.6%38.0%19.3%

Price Volatility Vs. Market

How volatile is TD Ameritrade Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is TD Ameritrade Holding undervalued compared to its fair value and its price relative to the market?

19.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMT (€45.8) is trading below our estimate of fair value (€56.98)

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


Price To Earnings Ratio

PE vs Industry: AMT is good value based on its PE Ratio (12.8x) compared to the Capital Markets industry average (23.1x).

PE vs Market: AMT is good value based on its PE Ratio (12.8x) compared to the German market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: AMT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AMT is overvalued based on its PB Ratio (3.2x) compared to the DE Capital Markets industry average (1.8x).


Next Steps

Future Growth

How is TD Ameritrade Holding forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMT's earnings are forecast to decline over the next 3 years (-3.7% per year).

Earnings vs Market: AMT's earnings are forecast to decline over the next 3 years (-3.7% per year).

High Growth Earnings: AMT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AMT's revenue is expected to decline over the next 3 years (-2.2% per year).

High Growth Revenue: AMT's revenue is forecast to decline over the next 3 years (-2.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMT's Return on Equity is forecast to be low in 3 years time (17.6%).


Next Steps

Past Performance

How has TD Ameritrade Holding performed over the past 5 years?

22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMT has high quality earnings.

Growing Profit Margin: AMT's current net profit margins (37.6%) are higher than last year (27.5%).


Past Earnings Growth Analysis

Earnings Trend: AMT's earnings have grown significantly by 22.9% per year over the past 5 years.

Accelerating Growth: AMT's earnings growth over the past year (49.9%) exceeds its 5-year average (22.9% per year).

Earnings vs Industry: AMT earnings growth over the past year (49.9%) exceeded the Capital Markets industry -3.4%.


Return on Equity

High ROE: AMT's Return on Equity (25.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TD Ameritrade Holding'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: AMT has a low level of unsold assets or inventory.

Debt Coverage by Assets: AMT's debt is covered by short term assets (assets are 9.9x debt).


Financial Institutions Analysis

Asset Level: AMT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AMT has a sufficient allowance for bad loans.

Low Risk Liabilities: AMT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AMT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AMT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AMT has an appropriate level of bad loans.


Next Steps

Dividend

What is TD Ameritrade Holding's current dividend yield, its reliability and sustainability?

2.43%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.6%industryaverage2.0%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: AMT's dividend (2.43%) is higher than the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: AMT's dividend (2.43%) is low compared to the top 25% of dividend payers in the German market (3.57%).


Stability and Growth of Payments

Stable Dividend: AMT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AMT's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.2%), AMT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMT's dividends in 3 years are forecast to be covered by earnings (52.9% payout ratio).


Next Steps

Management

What is the CEO of TD Ameritrade Holding's salary, the management and board of directors tenure and is there insider trading?

6.1yrs

Average management tenure


CEO

Steve Boyle (58yo)

0.08yrs

Tenure

US$2,730,664

Compensation

Mr. Stephen John Boyle, also known as Steve, has been the Chief Financial Officer at TD AMERITRADE Clearing, Inc. since October 1, 2015 and has been its Executive Vice President since January 13, 2016. He  ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD2.73M) is below average for companies of similar size in the German market ($USD4.62M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.1yrs

Average Tenure

57yo

Average Age

Experienced Management: AMT's management team is seasoned and experienced (6.1 years average tenure).


Board Age and Tenure

7.2yrs

Average Tenure

61yo

Average Age

Experienced Board: AMT's board of directors are considered experienced (7.2 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.


Recent Insider Transactions

SellUS$708,48804 Dec 19
Joseph Moglia
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares15,000
Max PriceUS$47.23
SellUS$434,77227 Nov 19
The Toronto-Dominion Bank
EntityCompany
Shares11,104
Max PriceUS$43.72
BuyUS$1,760,46927 Nov 19
The Toronto-Dominion Bank
EntityCompany
Shares51,252
Max PriceUS$43.44
SellUS$1,237,42625 Feb 19
Thomas Nally
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares25,000
Max PriceUS$49.50

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ellen L. Koplow (59yo)

    Executive VP

    • Tenure: 18.5yrs
  • Steve Boyle (58yo)

    Interim President

    • Tenure: 0.08yrs
    • Compensation: US$2.73m
  • Peter deSilva (57yo)

    President of Retail

    • Tenure: 2.3yrs
    • Compensation: US$6.89m
  • Tom Nally (47yo)

    Executive Vice President

    • Tenure: 7.8yrs
    • Compensation: US$3.52m
  • Kim Hillyer

    Managing Director of Corporate Communications

    • Tenure: 0yrs
  • Karen Ganzlin

    Executive VP & Chief Human Resources Officer

    • Tenure: 11.3yrs
  • Jeff Goeser

    Managing Director of Investor Relations

    • Tenure: 0yrs
  • Steve Quirk (54yo)

    Executive Vice President of Trading & Education

    • Tenure: 9.4yrs
    • Compensation: US$2.47m
  • Prashant Bhatia

    Managing Director of Corporate Strategy & Business Development

    • Tenure: 4.3yrs
  • Vijay Sankaran

    MD & Chief Information Officer

    • Tenure: 3.3yrs

Board Members

  • Allan Tessler (82yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$235.38k
  • Todd Ricketts (49yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$240.38k
  • Bharat Masrani (62yo)

    Vice Chairman of the Board

    • Tenure: 4.9yrs
  • Karen Maidment (60yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$246.91k
  • Bill Prezzano (78yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$230.38k
  • Mark Mitchell (58yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$266.30k
  • Joe Moglia (69yo)

    Chairman of the Board

    • Tenure: 11.2yrs
    • Compensation: US$414.69k
  • Larry Bettino (58yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$245.38k
  • Steve Boyle (58yo)

    Interim President

    • Tenure: 0.08yrs
    • Compensation: US$2.73m
  • Peter Williams (72yo)

    Chairman of Ameritrade Canada Inc

    • Tenure: 0yrs

Company Information

TD Ameritrade Holding Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TD Ameritrade Holding Corporation
  • Ticker: AMT
  • Exchange: DB
  • Founded: 1971
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$27.509b
  • Listing Market Cap: US$24.808b
  • Shares outstanding: 540.56m
  • Website: https://www.amtd.com

Number of Employees


Location

  • TD Ameritrade Holding Corporation
  • 200 South 108th Avenue
  • Omaha
  • Nebraska
  • 68154
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMTDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1997
AMTDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1997
0LC9LSE (London Stock Exchange)YesCommon StockGBUSDMar 1997

Biography

TD Ameritrade Holding Corporation provides securities brokerage and related technology-based financial services to retail investors and traders, and independent registered investment advisors (RIAs) in the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 21:21
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.