NasdaqGS:AMTD

Stock Analysis Report

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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.


Snowflake Analysis

Undervalued with adequate balance sheet and pays a dividend.


Similar Companies

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: AMTD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

AMTD

1.0%

US Capital Markets

0.5%

US Market


1 Year Return

-14.8%

AMTD

10.9%

US Capital Markets

18.7%

US Market

Return vs Industry: AMTD underperformed the US Capital Markets industry which returned 12.6% over the past year.

Return vs Market: AMTD underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

AMTDIndustryMarket
7 Day1.6%1.0%0.5%
30 Day-3.0%0.7%4.9%
90 Day11.5%17.8%19.8%
1 Year-12.0%-14.8%13.2%10.9%21.2%18.7%
3 Year-5.4%-11.8%29.0%21.2%46.2%36.8%
5 Year27.3%14.2%68.0%51.8%85.3%65.1%

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

Valuation

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

23.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMTD ($37.44) is trading below our estimate of fair value ($48.73)

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


Price To Earnings Ratio

PE vs Industry: AMTD is good value based on its PE Ratio (10.4x) compared to the US Capital Markets industry average (27.8x).

PE vs Market: AMTD is good value based on its PE Ratio (10.4x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AMTD is good value based on its PB Ratio (2.1x) compared to the US Capital Markets industry average (9.3x).


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?

-11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMTD's earnings are forecast to decline over the next 3 years (-11.4% per year).

Earnings vs Market: AMTD's earnings are forecast to decline over the next 3 years (-11.4% per year).

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

Revenue vs Market: AMTD's revenue is expected to decline over the next 3 years (-4.5% per year).

High Growth Revenue: AMTD's revenue is forecast to decline over the next 3 years (-4.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMTD's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

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

24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMTD has high quality earnings.

Growing Profit Margin: AMTD's current net profit margins (33.5%) are lower than last year (36.9%).


Past Earnings Growth Analysis

Earnings Trend: AMTD's earnings have grown significantly by 24.3% per year over the past 5 years.

Accelerating Growth: AMTD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AMTD had negative earnings growth (-8%) over the past year, making it difficult to compare to the Capital Markets industry average (13.3%).


Return on Equity

High ROE: AMTD's Return on Equity (20.3%) is considered high.


Next Steps

Financial Health

How is TD Ameritrade Holding's financial position?


Financial Position Analysis

Short Term Liabilities: AMTD's short term assets ($45.8B) exceed its short term liabilities ($40.5B).

Long Term Liabilities: AMTD's short term assets ($45.8B) exceed its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: AMTD's debt to equity ratio (39%) is considered satisfactory.

Reducing Debt: AMTD's debt to equity ratio has increased from 36.3% to 39% over the past 5 years.

Debt Coverage: AMTD's debt is well covered by operating cash flow (173.7%).

Interest Coverage: Insufficient data to determine if AMTD's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

3.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AMTD's dividend (3.31%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: AMTD's dividend (3.31%) is low compared to the top 25% of dividend payers in the US market (4.29%).


Stability and Growth of Payments

Stable Dividend: AMTD's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.3%), AMTD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMTD's dividends in 3 years are forecast to be covered by earnings (63.2% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Steve Boyle (59 yo)

4.83yrs

Tenure

US$2,980,405

Compensation

Mr. Stephen John Boyle, also known as Steve, serves as Board of Managers Member in TD Ameritrade Investment Management, LLC. He serves as Interim President & Chief Executive Officer of TD Ameritrade Cleari ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD2.98M) is below average for companies of similar size in the US market ($USD11.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Boyle
Interim President4.83yrsUS$2.98m0.033%
$ 6.7m
Steven Quirk
Executive Vice President of Trading & Education10.08yrsUS$2.79m0.019%
$ 3.9m
Peter deSilva
President of Retail2.92yrsUS$4.09m0.016%
$ 3.2m
Thomas Nally
President of TD Ameritrade Institutionalno dataUS$3.47m0.035%
$ 7.1m
Jon Peterson
Interim Chief Financial Officer0.75yrno data0.0035%
$ 716.0k
Vijay Sankaran
MD & Chief Information Officer4yrsno datano data
Jeffrey Goeser
Managing Director of Investor Relationsno datano datano data
Kim Hillyer
Managing Director of Corporate Communicationsno datano datano data
Prashant Bhatia
Managing Director of Corporate Strategy & Business Development5yrsno datano data
Andrew Yolin
Interim Chief Marketing Officer0.92yrno datano data
Karen Ganzlin
Executive VP & Chief Human Resources Officer11.92yrsno datano data
Katrina Becker
Managing Director of Communications & Public Affairsno datano datano data

4.4yrs

Average Tenure

55yo

Average Age

Experienced Management: AMTD's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Boyle
Interim President4.83yrsUS$2.98m0.033%
$ 6.7m
Peter Williams
Chairman of Ameritrade Canada Incno datano datano data
Allan Tessler
Independent Director13.75yrsUS$351.74k0.013%
$ 2.8m
V. Hailey
Independent Director4.58yrsUS$326.74k0.0029%
$ 591.6k
Todd Ricketts
Independent Director5.58yrsUS$256.74k0.086%
$ 17.6m
Bharat Masrani
Vice Chairman of the Board5.58yrsno datano data
Karen Maidment
Independent Director10yrsUS$264.19k0.014%
$ 2.9m
Wilbur Prezzano
Independent Lead Directorno dataUS$246.74k0.023%
$ 4.6m
Irene Miller
Independent Director4.67yrsUS$246.74k0.0028%
$ 571.2k
Mark Mitchell
Independent Director13.75yrsUS$364.30k0.012%
$ 2.4m
Joseph Moglia
Independent Chairman of the Board11.83yrsUS$468.45k0.017%
$ 3.5m
Lorenzo Bettino
Independent Director5.75yrsUS$261.38k0.0049%
$ 993.4k

5.7yrs

Average Tenure

65yo

Average Age

Experienced Board: AMTD's board of directors are considered experienced (5.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AMTD insiders have only sold shares 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

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


Key Information

  • Name: TD Ameritrade Holding Corporation
  • Ticker: AMTD
  • Exchange: NasdaqGS
  • Founded: 1971
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$20.399b
  • Shares outstanding: 540.94m
  • 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
AMTD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 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 Analysis2020/08/14 01:04
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
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.