Toronto Dominion Bank (TD) AI Stock Analysis

• Market Cap: $187.36B
• Dividend Yield: 3.86%
• Average Volume (3M): 4.73M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.80
• Revenue Growth: 7.92%
• EPS Growth: 175.59%
• Country: CA
• Employees: 100,424
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 2.20
• Shares Outstanding: 1,751,700,000
• 10 Day Avg. Volume: 3,731,052
• 30 Day Avg. Volume: 4,731,013
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.39
• Enterprise Value/Revenue: 3.81
• Enterprise Value/Gross Profit: 8.07
• Enterprise Value/Ebitda: 17.44
• 1Y Price Target: $106.40
• Price Target Upside: -1.46% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: C$115.00 ▲(6.50% Upside)

TD Bank's overall stock score is driven by strong earnings performance and attractive valuation. Technical indicators support a stable outlook, while financial performance shows operational efficiency but highlights concerns over leverage and liquidity. The earnings call provided positive sentiment, reinforcing strategic growth initiatives.

Positive Factors

Negative Factors

Toronto Dominion Bank Business Overview & Revenue Model

Company Description

The Toronto-Dominion Bank, together with its subsidiaries, provides various financial products and services in Canada, the United States, and internationally. It operates through three segments: Canadian Retail, U.S. Retail, and Wholesale Banking. The company offers personal deposits, such as chequing, savings, and investment products; financing, investment, cash management, international trade, and day-to-day banking services to businesses; and financing options to customers at point of sale for automotive and recreational vehicle purchases. It also provides credit cards and payments; real estate secured lending, auto finance, and consumer lending services; point-of-sale payment solutions for large and small businesses; wealth and asset management products, and advice to retail and institutional clients through direct investing, advice-based, and asset management businesses; and property and casualty insurance, as well as life and health insurance products. The company also provides capital markets, and corporate and investment banking products and services, including underwriting and distribution of new debt and equity issues; advice on strategic acquisitions and divestitures; and trading, funding, and investment services to corporations, governments, and institutions. It offers its products and services under the TD Bank and America's Most Convenient Bank brand names. The company operates through a network of 1,061 branches and 3,381 automated teller machines (ATMs) in Canada, and 1,148 stores and 2,701 ATMs in the United States, as well as offers telephone, digital, and mobile banking services. It has a strategic alliance with Canada Post Corporation. The Toronto-Dominion Bank was founded in 1855 and is headquartered in Toronto, Canada.

How the Company Makes Money

TD generates revenue primarily through its diversified financial services. The main revenue streams include interest income from loans and mortgages, which constitute a significant portion of its earnings. Additionally, TD earns fees from financial advisory services, asset management, and brokerage services. The bank also benefits from transaction fees associated with credit card services and other retail banking operations. Partnerships with various financial technology firms enhance TD's service offerings and customer engagement, while its extensive branch network and digital banking capabilities ensure broad access to its products. Furthermore, TD's involvement in wholesale banking, including capital markets and corporate lending, contributes to its revenue stability and growth.

Toronto Dominion Bank Financial Statement Overview

Summary

Toronto Dominion Bank shows strong profitability and operational efficiency with healthy margins. However, negative revenue growth and high leverage are concerning. The declining free cash flow growth and low operating cash flow coverage ratio highlight potential liquidity risks, warranting close monitoring.

Income Statement

The income statement shows a strong gross profit margin of 45.29% for TTM, indicating efficient cost management. However, the net profit margin has decreased to 14.57% from 20.94% in 2023, reflecting reduced profitability. Revenue growth is negative at -1.38% TTM, which is concerning, but the EBIT and EBITDA margins remain healthy at 16.53% and 18.29% respectively, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.98 TTM, indicating significant leverage, which could pose financial risks. However, the return on equity is strong at 14.73%, showing effective use of equity to generate profits. The equity ratio is relatively low, suggesting a heavy reliance on debt financing.

Cash Flow

Cash flow analysis indicates a significant decline in free cash flow growth at -40.58% TTM, which is a concern for liquidity. The operating cash flow to net income ratio is low at 0.19, suggesting potential cash flow challenges. However, the free cash flow to net income ratio remains robust at 0.93, indicating that the company is still generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.64B	119.17B	102.25B	59.44B	47.72B	54.62B
Gross Profit	55.50B	52.00B	48.59B	44.70B	42.49B	36.04B
EBITDA	25.67B	12.86B	14.80B	22.19B	19.20B	14.05B
Net Income	20.89B	8.84B	10.63B	17.43B	14.30B	11.89B
Balance Sheet
Total Assets	2.04T	2.06T	1.96T	1.92T	1.73T	1.72T
Cash, Cash Equivalents and Short-Term Investments	245.26B	230.49B	6.72B	179.68B	209.50B	273.88B
Total Debt	629.12B	460.66B	401.81B	374.04B	256.76B	40.96B
Total Liabilities	1.91T	1.95T	1.84T	1.81T	1.63T	1.62T
Stockholders Equity	125.39B	115.16B	112.11B	111.38B	99.82B	95.50B
Cash Flow
Free Cash Flow	17.24B	52.76B	-67.15B	37.49B	49.00B	228.35B
Operating Cash Flow	19.46B	54.94B	-65.30B	38.95B	50.13B	229.61B
Investing Cash Flow	-8.88B	-45.42B	76.23B	-31.89B	-45.27B	-223.32B
Financing Cash Flow	-12.32B	-9.81B	-12.85B	-4.82B	-5.04B	-4.75B

Toronto Dominion Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 107.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TD, the sentiment is Positive. The current price of 107.98 is above the 20-day moving average (MA) of 104.12, above the 50-day MA of 102.48, and above the 200-day MA of 88.73, indicating a bullish trend. The MACD of 1.47 indicates Negative momentum. The RSI at 70.97 is Negative, neither overbought nor oversold. The STOCH value of 96.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TD.

Toronto Dominion Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CM	78 Outperform	103.23B	13.27	12.99%	3.45%	-0.39%	20.28%
NA	78 Outperform	58.93B	14.61	0.00%	3.03%	9.25%	0.34%
RY	75 Outperform	283.13B	15.17	14.13%	2.94%	3.48%	17.81%
TD	74 Outperform	$187.36B	9.15	17.36%	3.86%	7.92%	175.59%
BMO	74 Outperform	127.96B	15.63	10.06%	3.89%	1.78%	32.32%
BNS	71 Outperform	110.57B	16.60	0.00%	6.13%	-2.54%	-6.66%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Toronto Dominion Bank Corporate Events

TD Bank Group Appoints New Global Head of Financial Crime Risk Management

TD Bank Group has appointed Jacqueline Sanjuas as the new Global Head of Financial Crime Risk Management, succeeding Herb Mazariegos. With over 20 years of experience in compliance and risk management, Ms. Sanjuas has been instrumental in enhancing the bank’s U.S. anti-money laundering program since joining TD in January 2024. These leadership changes are expected to strengthen TD’s efforts in financial crime risk management across its global operations.