NasdaqGS:AMTD

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 7.4% below its fair value

Earnings are forecast to grow 5.5% per year

Earnings grew by 11.4% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Solid track record and good value.


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

0.4%

AMTD

1.0%

US Capital Markets

0.5%

US Market


1 Year Return

-11.4%

AMTD

19.4%

US Capital Markets

20.3%

US Market

Return vs Industry: AMTD underperformed the US Capital Markets industry which returned 19.4% over the past year.

Return vs Market: AMTD underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

AMTDIndustryMarket
7 Day0.4%1.0%0.5%
30 Day-1.9%1.5%2.0%
90 Day3.5%7.4%9.4%
1 Year-9.0%-11.4%21.8%19.4%22.8%20.3%
3 Year21.8%14.6%40.6%32.7%50.1%40.4%
5 Year50.2%35.9%84.4%67.4%73.1%54.1%

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?

7.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMTD ($49.81) is trading below our estimate of fair value ($53.81)

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


Price To Earnings Ratio

PE vs Industry: AMTD is good value based on its PE Ratio (13.8x) compared to the Capital Markets industry average (36x).

PE vs Market: AMTD is good value based on its PE Ratio (13.8x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: AMTD is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: AMTD is good value based on its PB Ratio (3.1x) compared to the US Capital Markets industry average (6.7x).


Next Steps

Future Growth

How is TD Ameritrade Holding forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMTD's forecast earnings growth (5.5% per year) is above the savings rate (1.7%).

Earnings vs Market: AMTD's earnings (5.5% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: AMTD's revenue (1.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: AMTD's revenue (1.8% per year) is forecast to grow slower than 20% 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 (15.9%).


Next Steps

Past Performance

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

24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMTD has high quality earnings.

Growing Profit Margin: AMTD's current net profit margins (35.1%) are higher than last year (31.8%).


Past Earnings Growth Analysis

Earnings Trend: AMTD's earnings have grown significantly by 24% per year over the past 5 years.

Accelerating Growth: AMTD's earnings growth over the past year (11.4%) is below its 5-year average (24% per year).

Earnings vs Industry: AMTD earnings growth over the past year (11.4%) exceeded the Capital Markets industry 8.4%.


Return on Equity

High ROE: AMTD's Return on Equity (22.7%) 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: AMTD has a low level of unsold assets or inventory.

Debt Coverage by Assets: AMTD's debt is covered by short term assets (assets are 9.8x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.49%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: AMTD's dividend (2.49%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: AMTD's dividend (2.49%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

Growing Dividend: AMTD'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 (33.5%), 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 well covered by earnings (43.8% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Steve Boyle (58yo)

4.3yrs

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 ($USD2.98M) is below average for companies of similar size in the US market ($USD10.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Boyle
Interim President4.3yrsUS$2.98m0.0032% $853.7k
Steven Quirk
Executive Vice President of Trading & Education9.6yrsUS$2.79m0.0057% $1.5m
Timothy Hockey
Senior Advisor & Special Advisor to CEO0.3yrsUS$9.77mno data
Peter deSilva
President of Retail2.4yrsUS$4.09m0.0053% $1.4m
Thomas Nally
President of TD Ameritrade Institutional0yrsUS$3.47m0.017% $4.6m
Jon Peterson
Interim Chief Financial Officer0.3yrsno data0.0035% $934.5k
Vijay Sankaran
MD & Chief Information Officer3.5yrsno datano data
Jeffrey Goeser
Managing Director of Investor Relations0yrsno datano data
Kim Hillyer
Managing Director of Corporate Communications0yrsno datano data
Prashant Bhatia
Managing Director of Corporate Strategy & Business Development4.5yrsno datano data

3.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: AMTD's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Boyle
Interim President4.3yrsUS$2.98m0.0032% $853.7k
Peter Williams
Chairman of Ameritrade Canada Inc0yrsno datano data
Allan Tessler
Independent Director13.3yrsUS$351.74k0.012% $3.2m
Todd Ricketts
Independent Director5.1yrsUS$256.74k0.085% $22.9m
Bharat Masrani
Vice Chairman of the Board5.1yrsno datano data
Karen Maidment
Independent Director9.5yrsUS$264.19k0.00066% $177.7k
Wilbur Prezzano
Lead Director0yrsUS$246.74k0.012% $3.3m
Mark Mitchell
Independent Director13.3yrsUS$364.30k0.0051% $1.4m
Joseph Moglia
Independent Chairman of the Board11.3yrsUS$468.45k0.020% $5.5m
Lorenzo Bettino
Independent Director5.3yrsUS$261.38k0.0021% $560.1k

7.4yrs

Average Tenure

61yo

Average Age

Experienced Board: AMTD's board of directors are considered experienced (7.4 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$26.930b
  • Shares outstanding: 540.65m
  • 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 United States. The company offers trade execution, clearing, and margin lending services; and futures and foreign exchange trade execution services. It offers retail brokerage services for common and preferred stocks; exchange-traded funds (ETFs); mutual funds; options; futures; foreign exchange; fixed income products; primary and secondary offerings of fixed income securities, closed-end funds, common and preferred stocks; margin lending; cash management services; and annuities. The company also offers investor education services for investors to teach how to approach the selection process for investment securities and manage their investment portfolios. TD Ameritrade Holding Corporation provides its services primarily through the Internet, a network of retail branches, mobile trading applications, interactive voice response, and registered representatives through telephone. The company was founded in 1971 and is headquartered in Omaha, Nebraska. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 01:05
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
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.