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The Toronto-Dominion Bank TD

Morningstar Rating
$60.44 +0.42 (0.70%)
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Company Report

Toronto-Dominion Is Managing Difficult Economic Conditions Well; Shares Modestly Undervalued

Toronto-Dominion is one of the two largest banks in Canada by assets and one of six that collectively hold roughly 90% of the nation's banking deposits. The bank derives approximately 55% of its revenue from Canada and 35% from the United States, with the rest from other countries. Toronto-Dominion has done an admirable job of focusing on its Canadian retail operations and growing into number-one or -two market share for most key products in this segment. The bank also has number-two market share for business banking in Canada. With over CAD 400 billion in Canadian assets under management and top-three dealer status in Canada, and being the number-one card issuer in Canada, Toronto-Dominion should remain one of the dominant Canadian banks for years to come.

Price vs Fair Value

TD is trading at a 12% discount.
Price
$60.44
Fair Value
$74.00
Uncertainty
Low
1-Star Price
$23.14
5-Star Price
$25.80
Economic Moat
Gcvr
Capital Allocation
Rsjgckcft

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
$60.02
Day Range
$60.1060.58
52-Week Range
$54.6967.36
Bid/Ask
$59.75 / $60.97
Market Cap
$108.23 Bil
Volume/Avg
2.9 Mil / 3.2 Mil

Key Statistics

Price/Earnings (Normalized)
9.91
Price/Sales
2.73
Dividend Yield (Trailing)
4.77%
Dividend Yield (Forward)
3.76%
Total Yield
7.68%

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)
9.919.0010.68
Price/Book Value
1.431.201.29
Price/Sales
2.732.392.69
Price/Cash Flow
10.665.6411.51
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)
0.76%0.68%0.71%
Return on Equity (Normalized)
14.34%13.92%12.79%
Return on Invested Capital (Normalized)
Return on Assets
TD
CM
BMO
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Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
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BAC
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WFC
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HSBC
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RY
Royal Bank of CanadaJfqm$139.0 Bil
MUFG
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C
Citigroup IncDvcv$106.4 Bil
UBS
UBS Group AGYwrkx$90.1 Bil
BMO
Bank of MontrealVsjyjng$68.5 Bil

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