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The Toronto-Dominion Bank TD

Morningstar Rating
$60.38 −0.26 (0.43%)
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Company Report

Toronto-Dominion Earnings: Decent Results as Strong Fee Income Helps Offset Higher Costs

Wide-moat-rated Toronto-Dominion Bank reported decent fourth-quarter results, though the bank’s unadjusted earnings remain messy due to a high volume of restructuring- and acquisition-related expenses. Adjusted revenue increased 5% from last year to CAD 13.8 billion. Meanwhile, adjusted earnings per share increased 4% from last quarter but fell 12% from last year due to higher operating and credit costs. As we incorporate these results, we do not plan to materially alter our CAD 92/USD 69 fair value estimates for the bank, and we see the shares as modestly undervalued.

Price vs Fair Value

TD is trading at a 14% discount.
Price
$59.60
Fair Value
$28.00
Uncertainty
Low
1-Star Price
$76.46
5-Star Price
$91.70
Economic Moat
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Capital Allocation
Mydnjptq

Bulls Say, Bears Say

Bulls

The profitability of its Canadian bank segment should continue for some time, providing a solid foundation for strong returns for Toronto-Dominion.

Bears

The bank's higher U.S. exposure and higher rate sensitivity is turning into a double-edged sword, as higher rates are now putting more pressure on earnings, particularly within the U.S.

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News

Trading Information

Previous Close Price
$60.64
Day Range
$60.1360.82
52-Week Range
$54.6966.15
Bid/Ask
$60.12 / $60.50
Market Cap
$106.77 Bil
Volume/Avg
3.1 Mil / 2.9 Mil

Key Statistics

Price/Earnings (Normalized)
10.55
Price/Sales
2.77
Dividend Yield (Trailing)
4.75%
Dividend Yield (Forward)
4.96%
Total Yield
8.84%

Company Profile

Toronto-Dominion is one of Canada's two largest banks and operates three business segments: Canadian retail banking, U.S. retail banking, and wholesale banking. The bank’s U.S. operations span from Maine to Florida, with a strong presence in the Northeast. It also has a 13% ownership stake in Charles Schwab.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
103,257

Competitors

Valuation

Metric
TD
CM
BMO
Price/Earnings (Normalized)
10.5510.2311.80
Price/Book Value
1.421.281.35
Price/Sales
2.772.652.91
Price/Cash Flow
9.675.689.82
Price/Earnings
TD
CM
BMO

Financial Strength

Metric
TD
CM
BMO
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
TD
CM
BMO
Return on Assets (Normalized)
0.75%0.69%0.65%
Return on Equity (Normalized)
14.20%13.91%11.72%
Return on Invested Capital (Normalized)
Return on Assets
TD
CM
BMO
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