LSE:0VL8

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 Analysis

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

Stable Share Price: 0VL8's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.5%

0VL8

-1.4%

GB Banks

6.2%

GB Market


1 Year Return

-23.5%

0VL8

-33.5%

GB Banks

-22.7%

GB Market

Return vs Industry: 0VL8 exceeded the UK Banks industry which returned -33.5% over the past year.

Return vs Market: 0VL8 matched the UK Market which returned -22.7% over the past year.


Shareholder returns

0VL8IndustryMarket
7 Day-1.5%-1.4%6.2%
30 Day-26.1%-22.0%-17.8%
90 Day-24.5%-34.6%-27.7%
1 Year-20.4%-23.5%-28.8%-33.5%-18.6%-22.7%
3 Yearn/a-32.0%-41.3%-13.4%-24.6%
5 Yearn/a-29.7%-43.8%1.3%-22.0%

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

No news available

Valuation

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

38.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0VL8 (CA$55.89) is trading below our estimate of fair value (CA$91.21)

Significantly Below Fair Value: 0VL8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0VL8 is poor value based on its PE Ratio (8.6x) compared to the Banks industry average (4.6x).

PE vs Market: 0VL8 is good value based on its PE Ratio (8.6x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0VL8 is poor value based on its PEG Ratio (7.2x)


Price to Book Ratio

PB vs Industry: 0VL8 is overvalued based on its PB Ratio (1.2x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is Toronto-Dominion Bank forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0VL8's forecast earnings growth (1.2% per year) is above the savings rate (0.5%).

Earnings vs Market: 0VL8's earnings (1.2% per year) are forecast to grow slower than the UK market (15.4% per year).

High Growth Earnings: 0VL8's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0VL8's revenue (4% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: 0VL8's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0VL8's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

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

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0VL8 has high quality earnings.

Growing Profit Margin: 0VL8's current net profit margins (31.1%) are higher than last year (30.1%).


Past Earnings Growth Analysis

Earnings Trend: 0VL8's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: 0VL8's earnings growth over the past year (8.2%) is below its 5-year average (10% per year).

Earnings vs Industry: 0VL8 earnings growth over the past year (8.2%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: 0VL8's Return on Equity (13.8%) is considered low.


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: 0VL8 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0VL8's debt is covered by short term assets (assets are 1.8x debt).


Financial Institutions Analysis

Asset Level: 0VL8's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 0VL8 has a sufficient allowance for bad loans.

Low Risk Liabilities: 0VL8's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0VL8 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0VL8's loans are broadly funded by customer deposits.

Level of Bad Loans: 0VL8 has an appropriate level of bad loans (0.46%)


Next Steps

Dividend

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

5.57%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 0VL8's dividend (5.57%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: 0VL8's dividend (5.57%) is low compared to the top 25% of dividend payers in the UK market (7.3%).


Stability and Growth of Payments

Stable Dividend: 0VL8's dividends per share have been stable in the past 10 years.

Growing Dividend: 0VL8's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.8%), 0VL8's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0VL8's dividends in 3 years are forecast to be well covered by earnings (48.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Bharat Masrani (62yo)

5.33s

Tenure

CA$12,636,569

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 ($USD8.98M) is above average for companies of similar size in the UK market ($USD5.57M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bharat Masrani
Group President5.33yrsCA$12.64m0.034% CA$35.1m
Riaz Ahmed
Group Head & CFO4.17yrsCA$4.00m0.022% CA$22.7m
Robert Dorrance
Group Head of Wholesale Banking14.33yrsCA$7.43m0.032% CA$32.4m
Theresa Currie
Group Head of Canadian Personal Banking9.33yrsCA$6.59m0.00024% CA$246.5k
Gregory Braca
Group Head of U.S. Retail Banking2.33yrsCA$5.34m0.00041% CA$421.1k
Valerie Gillis
Chief Accountant & Senior VP of Financeno datano datano data
Michael Rhodes
Group Head of Innovation2.33yrsno datano data
Jeffrey Henderson
Chief Information Officer & Executive VPno datano datano data
Gillian Manning
Vice President & Head of IRno datano datano data
Scott Fixter
VP of Legal & Corporate Secretaryno datano datano data

4.8yrs

Average Tenure

Experienced Management: 0VL8's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bharat Masrani
Group President5.33yrsCA$12.64m0.034% CA$35.1m
William Bennett
Independent Director15.83yrsCA$549.04k0.000030% CA$30.8k
George Watson
Member of Advisory Boardno datano datano data
Karen Maidment
Independent Director8.5yrsCA$292.50k0.00064% CA$657.3k
Amy Brinkley
Independent Director9.5yrsCA$540.96k0.00013% CA$133.5k
Irene Miller
Independent Director13.83yrsCA$247.50k0.0011% CA$1.1m
Brian Levitt
Independent Non-Executive Chairman of the Board9.17yrsCA$448.33k0.0017% CA$1.7m
Nadir Mohamed
Independent Director11.92yrsCA$225.00k0.00034% CA$349.2k
Brian Ferguson
Independent Director5yrsCA$247.50k0.00025% CA$256.8k
Alan MacGibbon
Independent Director5.92yrsCA$640.94k0.00023% CA$236.2k

9.2yrs

Average Tenure

63yo

Average Age

Experienced Board: 0VL8's board of directors are considered experienced (9.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 0VL8 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: The Toronto-Dominion Bank
  • Ticker: 0VL8
  • Exchange: LSE
  • Founded: 1855
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CA$102.707b
  • Shares outstanding: 1.81b
  • Website: https://www.td.com

Number of Employees


Location

  • The Toronto-Dominion Bank
  • Toronto-Dominion Centre
  • Toronto
  • Ontario
  • M5K 1A2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TDNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
TDTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
TDBDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
0VL8LSE (London Stock Exchange)YesCommon SharesGBCADDec 1972
TD.PFBTSX (The Toronto Stock Exchange)5YR RST PFD SR 3CACADAug 2014
TNTT.FOTCPK (Pink Sheets LLC)5YR RST PFD SR 3USUSDAug 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 segments: Canadian Retail, U.S. Retail, and Wholesale Banking. It offers personal deposits, such as checking, savings, and investment products; financing, investment, cash management, international trade, and day-to-day banking services to 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. The company also provides capital markets, and corporate and investment banking 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 automated teller machines, telephone, Internet, and mobile banking services. It offers its products and services under the TD Bank, America's Most Convenient Bank, and TD Ameritrade brand names. The company offers personal and business banking products and services through a network of 1,091 branches and 3,509 automated teller machines in Canada; and through a network of 1,241 stores. The Toronto-Dominion Bank was founded in 1855 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 23:55
End of Day Share Price2020/03/25 00:00
Earnings2020/01/31
Annual Earnings2019/10/31


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.