Toronto Dominion Bank (TD) AI Stock Analysis

• Market Cap: C$219.79B
• Dividend Yield: 3.34%
• Average Volume (3M): 7.14M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.68
• Revenue Growth: 3.07%
• EPS Growth: 144.41%
• Country: US
• Employees: 100,424
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 2.18
• Shares Outstanding: 1,689,496,000
• 10 Day Avg. Volume: 5,948,677
• 30 Day Avg. Volume: 7,142,346
• PEG Ratio: 0.07
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 1.72
• P/FCF Ratio: -2.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$128.00
• Price Target Upside: -1.86% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: C$144.00 ▲(10.41% Upside)

The score is driven primarily by mixed financial performance—strong profitability but pressured by negative revenue growth, high leverage, and cash-flow volatility. Technicals add support (uptrend and positive MACD), while valuation is favorable with a modest P/E and a solid dividend yield.

Positive Factors

Diversified revenue model

TD's mix of net interest income, fee-based services and wealth management reduces reliance on any single income source. Diversification across lending, payments and advisory services supports steady fee income and cushions net interest sensitivity, helping earnings durability over cycles.

Scale and cross-border presence

As one of Canada's largest banks with a substantial U.S. footprint and broad branch plus digital distribution, TD benefits from scale economies, diversified customer deposits and cross-border growth optionality. Scale supports product distribution, marketing efficiency and deposit stability long-term.

Strong operating profitability

Consistently healthy EBIT/EBITDA and net margins indicate operational efficiency and pricing power in core banking. Robust margins give TD capacity to absorb credit and funding pressures, invest in technology and sustain returns to shareholders even if top-line growth softens.

Negative Factors

High leverage

A high debt-to-equity profile increases sensitivity to funding cost shocks and regulatory capital demands. Elevated leverage constrains strategic flexibility, raises refinancing and stress-test risks, and can magnify earnings volatility if credit losses or interest expense rise.

Volatile and weakening cash generation

Recent declines and volatility in free cash flow and negative operating cash flow to net income weaken the bank's internal funding capacity. Persistent cash conversion issues limit reinvestment, dividend resilience and capital build, creating longer‑term funding and policy constraints.

Recent revenue weakness

Negative recent revenue growth is a structural concern that can erode scale benefits and pressure margins over time. If driven by competitive pressures or slower loan/card growth, it undermines earnings momentum and the bank's ability to organically grow capital and fund strategic initiatives.

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 through several key streams, primarily focusing on net interest income and non-interest income. Net interest income comes from the difference between the interest earned on loans and the interest paid on deposits. This includes personal and commercial loans, mortgages, and credit products. Non-interest income is derived from fees for services such as asset management, investment banking, and transaction fees from credit and debit card usage. Additionally, TD benefits from wealth management services, which provide advisory services and investment products for high-net-worth individuals. The bank also engages in strategic partnerships and collaborations, enhancing its service offerings and expanding its customer base. Overall, TD's diversified revenue model, strong presence in both Canadian and U.S. markets, and focus on digital banking innovations contribute significantly to its financial performance.

Toronto Dominion Bank Financial Statement Overview

Summary

Profitability and operating efficiency are solid (healthy EBIT/EBITDA margins; consistent net profit margin), but the fundamentals are held back by negative recent revenue growth, high leverage (high debt-to-equity), and volatile/weaker cash generation (free cash flow decline; negative operating cash flow to net income).

Income Statement

Toronto Dominion Bank's income statement shows a strong gross profit margin and consistent net profit margin over the years. However, recent revenue growth has been negative, indicating potential challenges in revenue generation. The EBIT and EBITDA margins remain healthy, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, which is a concern for financial stability. However, the bank maintains a reasonable return on equity, indicating effective use of equity capital. The equity ratio is stable, but the high leverage poses potential risks.

Cash Flow

Cash flow analysis reveals volatility, with a significant decline in free cash flow growth recently. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Despite this, the bank has historically maintained a strong free cash flow to net income ratio.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	115.84B	119.17B	102.25B	59.44B	47.72B
Gross Profit	56.78B	52.00B	48.59B	44.70B	42.49B
EBITDA	25.81B	12.86B	14.80B	22.19B	19.20B
Net Income	20.54B	8.84B	10.63B	17.43B	14.30B
Balance Sheet
Total Assets	2.09T	2.06T	1.96T	1.92T	1.73T
Cash, Cash Equivalents and Short-Term Investments	156.06B	230.49B	116.51B	156.98B	194.67B
Total Debt	663.58B	662.56B	568.66B	502.06B	400.86B
Total Liabilities	1.97T	1.95T	1.84T	1.81T	1.63T
Stockholders Equity	127.83B	115.16B	112.07B	111.38B	99.82B
Cash Flow
Free Cash Flow	-71.79B	52.76B	-67.15B	37.49B	49.00B
Operating Cash Flow	-69.65B	54.94B	-65.30B	38.95B	50.13B
Investing Cash Flow	86.19B	-45.42B	76.23B	-31.89B	-45.27B
Financing Cash Flow	-15.50B	-9.81B	-12.85B	-4.82B	-5.04B

Toronto Dominion Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 130.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 130.42 is above the 20-day moving average (MA) of 129.95, above the 50-day MA of 124.21, and above the 200-day MA of 105.32, indicating a bullish trend. The MACD of 1.55 indicates Positive momentum. The RSI at 62.32 is Neutral, neither overbought nor oversold. The STOCH value of 63.61 is Neutral, 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
BNS	77 Outperform	C$127.34B	17.65	9.19%	4.32%	-3.65%	-1.73%
NA	76 Outperform	$64.45B	16.24	13.53%	2.64%	7.50%	-5.28%
RY	73 Outperform	C$321.43B	16.28	15.28%	2.58%	2.13%	25.16%
CM	71 Outperform	C$116.30B	14.56	13.69%	3.07%	-3.13%	18.22%
TD	70 Outperform	C$219.79B	11.24	16.78%	3.34%	3.07%	144.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BMO	66 Neutral	C$133.00B	16.37	10.10%	3.61%	-1.30%	20.41%