Toronto Dominion Bank (TSE:TD)
TSX:TD
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Toronto Dominion Bank
(TSX:TD)
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Rating:64Neutral
Price Target:
C$138.00
â–²(8.22% Upside)
Action:ReiteratedDate:03/25/26
Overall score reflects improving profitability and constructive earnings-call guidance (record results, cost takeouts, and capital returns), balanced against weaker financial quality signals from highly volatile cash flows and a leveraged bank balance sheet. Technicals are mildly bearish near term, while valuation and dividend yield provide support.
Positive Factors
Scale & Diversification
TD’s very large, diversified balance sheet (~$2.1T) and multi‑line franchise (retail, commercial, wealth, capital markets) provide durable funding, cross‑sell opportunities and geographic diversification. Scale supports stable deposit funding, product breadth and resilience to localized shocks over the medium term.
Negative Factors
Cash Flow Volatility
Operating and free cash flow have swung dramatically year‑to‑year, eroding confidence in cash conversion stability. Such volatility complicates capital planning, dividend/buyback consistency and the bank’s ability to fund investments or absorb credit shocks without relying on capital markets or trimming payouts.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Diversification
TD’s very large, diversified balance sheet (~$2.1T) and multi‑line franchise (retail, commercial, wealth, capital markets) provide durable funding, cross‑sell opportunities and geographic diversification. Scale supports stable deposit funding, product breadth and resilience to localized shocks over the medium term.
Read all positive factors
Toronto Dominion Bank (TD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$215.44B
Dividend Yield3.34%
Average Volume (3M)4.33M
Price to Earnings (P/E)13.2
Beta (1Y)0.65
Revenue Growth3.07%
EPS Growth144.41%
CountryCA
Employees100,424
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)2.44
Shares Outstanding1,689,496,000
10 Day Avg. Volume5,834,776
30 Day Avg. Volume4,331,480
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.56
Price to Sales (P/S)1.72
P/FCF Ratio-2.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$141.03Price Target Upside10.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)9.45
Revenue Forecast (FY)C$59.01B
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....
How the Company Makes Money
TD makes money primarily by earning net interest income and non-interest income across its major business lines.
1) Net interest income (core banking spread)
- Deposits and funding: TD gathers low-cost funding through customer deposits (checking,...
Toronto Dominion Bank Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial momentum with record earnings, double-digit revenue growth, improved ROE, meaningful progress on cost savings and multiple business-line records (Canadian P&C, Wealth & Insurance, Wholesale). Strategic initiatives—AI deployments, Nordstrom conversion, and share buybacks—support growth and capital returns. Key credit and expense-related headwinds were manageable: impaired PCLs rose (notably driven by a few specific borrowers, including one large wholesale borrower), restructuring and remediation costs continue, and CET1 modestly declined due to buybacks. On balance, the positive operational and financial momentum, clear cost-saving roadmap, capital return program and AI scaling materially outweigh the contained credit and expense challenges.Positive Updates
Record Earnings and EPS
Reported record net earnings of $4.2 billion and EPS of $2.44 for Q1 FY2026; ROE improved to 14.2% (up 100 basis points year-over-year).
Negative Updates
Increase in Impaired PCLs and Gross Impaired Loans
Impaired provisions were $1.16 billion, up $221 million quarter-over-quarter; gross impaired loans rose to $5.59 billion (58 basis points), up 2 basis points QoQ; gross impaired loan formations were 27 basis points (up 4 basis points QoQ).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Earnings and EPS
Reported record net earnings of $4.2 billion and EPS of $2.44 for Q1 FY2026; ROE improved to 14.2% (up 100 basis points year-over-year).
Read all positive updates
Company Guidance
TD’s guidance emphasized disciplined capital, cost and credit targets: fiscal 2026 PCLs are expected to be 40–50 bps and expense growth is targeted at 3–4% for FY26; the bank is managing toward a 13% CET1 ratio by H2 FY2027 (Q1 CET1 14.5%) while continuing buybacks (completed $8B program, launched a $7B program, ~84M shares repurchased to date; 19M in Q1 reduced CET1 ~38 bps); management reiterated medium‑term EPS growth of 6–8% and a FY26 13% ROE target with upside to 16% ROE, noting ~100 bps ROE benefit from reaching 13% CET1 and ~150 bps from $2–2.5B of annualized cost takeouts; other guidance included U.S. Banking earnings of US$2.9B in FY26 and a mid‑50s efficiency ratio by FY29, AML remediation spend of $500M in FY26, a modest NIM increase in U.S. Banking next quarter (Q1 U.S. NIM 3.38%), a $1B medium‑term AI value target, and completion of restructuring (total $886M pretax charges) yielding $775M pretax annualized savings.Toronto Dominion Bank Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
58
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 114.03B | 115.84B | 119.17B | 102.25B | 59.44B | 47.72B |
| Gross Profit | 58.23B | 56.78B | 52.00B | 48.59B | 44.70B | 42.49B |
| EBITDA | 27.53B | 25.81B | 12.86B | 14.80B | 22.19B | 19.20B |
| Net Income | 21.79B | 20.54B | 8.84B | 10.63B | 17.43B | 14.30B |
Balance Sheet | ||||||
| Total Assets | 2.10T | 2.09T | 2.06T | 1.96T | 1.92T | 1.73T |
| Cash, Cash Equivalents and Short-Term Investments | 6.29B | 156.06B | 230.49B | 116.51B | 156.98B | 194.67B |
| Total Debt | 269.22B | 663.58B | 662.56B | 568.66B | 502.06B | 400.86B |
| Total Liabilities | 1.97T | 1.97T | 1.95T | 1.84T | 1.81T | 1.63T |
| Stockholders Equity | 125.60B | 127.83B | 115.16B | 112.07B | 111.38B | 99.82B |
Cash Flow | ||||||
| Free Cash Flow | 14.08B | -71.79B | 52.76B | -67.15B | 37.49B | 49.00B |
| Operating Cash Flow | 16.26B | -69.65B | 54.94B | -65.30B | 38.95B | 50.13B |
| Investing Cash Flow | 27.15B | 86.19B | -45.42B | 76.23B | -31.89B | -45.27B |
| Financing Cash Flow | -43.34B | -15.50B | -9.81B | -12.85B | -4.82B | -5.04B |
Toronto Dominion Bank Technical Analysis
Negative
127.52
Price Trends
130.39
Negative
126.13
Positive
114.64
Positive
Market Momentum
-0.83
Positive
44.18
Neutral
30.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TD, the sentiment is Negative. The current price of 127.52 is below the 20-day moving average (MA) of 129.69, below the 50-day MA of 130.39, and above the 200-day MA of 114.64, indicating a neutral trend. The MACD of -0.83 indicates Positive momentum. The RSI at 44.18 is Neutral, neither overbought nor oversold. The STOCH value of 30.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TD.
Toronto Dominion Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$118.49B | 9.41 | 14.75% | 3.07% | -3.13% | 18.22% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | C$306.96B | 13.71 | 15.37% | 2.58% | 2.13% | 25.16% | |
66 Neutral | C$67.88B | 12.62 | 12.83% | 2.64% | 7.50% | -5.28% | |
64 Neutral | C$215.44B | 13.22 | 17.26% | 3.34% | 3.07% | 144.41% | |
62 Neutral | C$115.71B | 14.70 | 10.41% | 4.32% | -3.65% | -1.73% | |
60 Neutral | C$129.48B | 13.18 | 10.47% | 3.61% | -1.30% | 20.41% |
* Financial Sector Average
TSE:TD
Toronto Dominion Bank
127.52
46.05
56.52%
TSE:BMO
Bank Of Montreal
183.35
50.81
38.34%
TSE:BNS
Bank Of Nova Scotia
93.88
29.27
45.30%
TSE:CM
Canadian Bank of Commerce
127.87
49.17
62.47%
TSE:RY
Royal Bank Of Canada
219.79
62.24
39.51%
TSE:NA
National Bank of Canada
175.28
59.19
50.98%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.