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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

5.3%

AMTD

2.7%

US Capital Markets

1.8%

US Market


1 Year Return

-27.2%

AMTD

1.9%

US Capital Markets

7.3%

US Market

Return vs Industry: AMTD underperformed the US Capital Markets industry which returned 1.9% over the past year.

Return vs Market: AMTD underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

AMTDIndustryMarket
7 Day5.3%2.7%1.8%
30 Day-27.4%-4.0%-0.7%
90 Day-29.6%-2.5%0.06%
1 Year-25.5%-27.2%4.2%1.9%9.7%7.3%
3 Year4.8%-0.8%50.9%42.5%46.3%36.9%
5 Year27.8%16.2%77.0%60.7%64.5%46.5%

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?

16.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: AMTD ($36.33) is trading below our estimate of fair value ($43.44)

Significantly Undervalued: 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 (9.6x) compared to the Capital Markets industry average (39.4x).

PE vs Market: AMTD is good value based on its PE Ratio (9.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low 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 (2.4x) compared to the US Capital Markets industry average (6.5x).


Next Steps

Future Growth

How is TD Ameritrade Holding forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-8.6%

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 (-8.6% per year).

Earnings vs Market: AMTD's earnings are forecast to decline over the next 3 years (-8.6% 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 (-2.9% per year).

High Growth Revenue: AMTD's revenue is forecast to decline over the next 3 years (-2.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: AMTD's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

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

20.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AMTD's earnings have grown significantly by 20.2% per year over the past 5 years.

Accelerating Growth: AMTD's earnings growth over the past year (71.7%) exceeds its 5-year average (20.2% per year).

Earnings vs Industry: AMTD earnings growth over the past year (71.7%) exceeded the Capital Markets industry 31.4%.


Return on Equity

High ROE: AMTD's Return on Equity (24.9%) is considered high.


Return on Assets

ROA vs Industry: AMTD has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate AMTD's Return on Capital Employed to determine if it has improved over the past 3 years.


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 9.360380x 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?

3.30%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.5%markettop25%3.7%industryaverage2.1%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AMTD's dividend (3.3%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AMTD's dividend (3.3%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 (29.4%), 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 (40.5% 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?

4.1yrs

Average management tenure


CEO

Tim Hockey (55yo)

3yrs

Tenure

US$8,577,509

Compensation

Mr. Timothy D. Hockey, also known as Tim, has been the President of TD Ameritrade Holding Corporation since January 2, 2016 and became its Chief Executive Officer since October 1, 2016. Mr. Hockey served a ...


CEO Compensation Analysis

Compensation vs. Market: Tim's total compensation ($USD8.58M) is about average for companies of similar size in the US market ($USD11.21M).

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


Management Age and Tenure

4.1yrs

Average Tenure

56yo

Average Age

Experienced Management: AMTD's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

61yo

Average Age

Experienced Board: AMTD's board of directors are considered experienced (7 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$1,402,50025 Feb 19
Thomas Nally
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares25,000
Max PriceUS$56.10

Ownership Breakdown


Management Team

  • Ellen L. Koplow (59yo)

    Executive VP

    • Tenure: 18.3yrs
  • Steve Boyle (58yo)

    Executive VP & CFO

    • Tenure: 4yrs
    • Compensation: US$2.73m
  • Tim Hockey (55yo)

    President

    • Tenure: 3yrs
    • Compensation: US$8.58m
  • Peter deSilva (57yo)

    Executive Vice President of Retail Distribution

    • Tenure: 2.1yrs
    • Compensation: US$6.89m
  • Tom Nally (47yo)

    Executive Vice President

    • Tenure: 7.7yrs
    • Compensation: US$3.52m
  • Kim Hillyer

    Managing Director of Corporate Communications

    • Tenure: 0yrs
  • Jeff Goeser

    Managing Director of Investor Relations

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

    Executive Vice President of Trading & Education

    • Tenure: 9.3yrs
    • Compensation: US$2.47m
  • Prashant Bhatia

    Managing Director of Corporate Strategy & Business Development

    • Tenure: 4.2yrs
  • Vijay Sankaran

    MD & Chief Information Officer

    • Tenure: 3.2yrs

Board Members

  • Allan Tessler (82yo)

    Director

    • Tenure: 12.9yrs
    • Compensation: US$235.38k
  • Todd Ricketts (49yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$240.38k
  • Bharat Masrani (62yo)

    Vice Chairman of the Board

    • Tenure: 4.8yrs
  • Karen Maidment (60yo)

    Director

    • Tenure: 9.2yrs
    • Compensation: US$246.91k
  • Bill Prezzano (78yo)

    Lead Director

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

    Director

    • Tenure: 12.9yrs
    • Compensation: US$266.30k
  • Joe Moglia (69yo)

    Chairman of the Board

    • Tenure: 11yrs
    • Compensation: US$414.69k
  • Larry Bettino (58yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: US$245.38k
  • Tim Hockey (55yo)

    President

    • Tenure: 3yrs
    • Compensation: US$8.58m
  • 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: AMTD
  • Exchange: NasdaqGS
  • Founded: 1971
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$19.928b
  • Shares outstanding: 548.52m
  • 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 Analysis2019/10/17 23:49
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.