The Toronto-Dominion Bank
The Toronto-Dominion Bank Fundamental Analysis
The Toronto-Dominion Bank (TDBKF) shows strong financial fundamentals with a PE ratio of 2.07, profit margin of 20.58%, and ROE of 17.21%. The company generates $99.9B in annual revenue with strong year-over-year growth of 16.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TDBKF's fundamental strength across five key dimensions:
Efficiency Score
WeakTDBKF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTDBKF trades at attractive valuation levels.
Growth Score
ModerateTDBKF shows steady but slowing expansion.
Financial Health Score
WeakTDBKF carries high financial risk with limited liquidity.
Profitability Score
ExcellentTDBKF achieves industry-leading margins.
Key Financial Metrics
Is TDBKF Expensive or Cheap?
P/E Ratio
TDBKF trades at 2.07 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TDBKF's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values The Toronto-Dominion Bank at 0.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -21.95 times EBITDA. This is generally considered low.
How Well Does TDBKF Make Money?
Net Profit Margin
For every $100 in sales, The Toronto-Dominion Bank keeps $20.58 as profit after all expenses.
Operating Margin
Core operations generate 18.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.21 in profit for every $100 of shareholder equity.
ROA
The Toronto-Dominion Bank generates $1.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Toronto-Dominion Bank produces operating cash flow of $19.15B, showing steady but balanced cash generation.
Free Cash Flow
The Toronto-Dominion Bank generates strong free cash flow of $16.96B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.71 in free cash annually.
FCF Yield
TDBKF converts 40.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How TDBKF Stacks Against Its Sector Peers
| Metric | TDBKF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.07 | 18.73 | Better (Cheaper) |
| ROE | 17.21% | 847.00% | Weak |
| Net Margin | 20.58% | 2562.00% | Weak |
| Debt/Equity | 5.02 | 0.93 | Weak (High Leverage) |
| Current Ratio | 0.18 | 674.76 | Weak Liquidity |
| ROA | 1.03% | -21692.00% (disorted) | Weak |
TDBKF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Toronto-Dominion Bank's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
111.35%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-20.91%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
6808.24%
Industry Style: Value, Dividend, Cyclical
High Growth