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Toronto Dominion Bank
(NYSE:TD)
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Rating:65Neutral
Price Target:
C$174.00
â–²(20.69% Upside)
Action:Reiterated
Date:06/12/26
The score is driven primarily by solid but uneven financial performance (good profitability/ROE, improving leverage, but volatile cash flow and soft growth). Technicals are supportive with strong trend and momentum, while valuation is only moderate. The latest earnings call adds a positive tilt due to reaffirmed guidance and strong execution, tempered by remediation/expense pressures and uncertainty-driven reserve actions.
Positive Factors
High ROE & Earnings Momentum
Sustained double‑digit ROE and a 21% YoY EPS increase show durable return on equity and earnings power. Over a multi‑quarter horizon this supports reinvestment, dividends and buybacks, and provides a capital cushion that strengthens long‑term competitive positioning.
Negative Factors
Negative Revenue Trend
Material negative revenue growth reduces confidence in sustainable top‑line momentum. A decline of this magnitude historically pressures margins and makes future earnings more dependent on cost cuts or one‑time gains, weakening predictability of cash generation over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High ROE & Earnings Momentum
Sustained double‑digit ROE and a 21% YoY EPS increase show durable return on equity and earnings power. Over a multi‑quarter horizon this supports reinvestment, dividends and buybacks, and provides a capital cushion that strengthens long‑term competitive positioning.
Read all positive factors
Toronto Dominion Bank (TD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$287.26B
Dividend Yield3.34%
Average Volume (3M)3.69M
Price to Earnings (P/E)20.0
Beta (1Y)0.66
Revenue Growth-11.69%
EPS Growth-11.99%
CountryCA
Employees100,424
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)8.50
Shares Outstanding1,689,496,000
10 Day Avg. Volume3,600,026
30 Day Avg. Volume3,691,866
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$158.90Price Target Upside10.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)9.68
Revenue Forecast (FY)C$59.59B
Toronto Dominion Bank Business Overview & Revenue Model
Company Description
The Toronto-Dominion Bank, or TD, delivers an extensive array of financial products and services to clients across Canada, the United States, and on a global scale. Its business operations are segmented into three primary divisions: Canadian Retai...
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:May 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Positive
Positive. The bank reported strong, broad-based results (EPS +21%, ROE improvement, record segment performance, loan and deposit growth, and robust AI-driven cost-savings progress) and is tracking ahead on Investor Day targets. Notable challenges include ongoing AML remediation costs, elevated U.S. expense growth (partly remediation and conversion-related), a Q2 receivable adjustment in the strategic cards portfolio (USD 144m), and reserve builds tied to macro and geopolitical uncertainty. Management expects remediation costs to moderate and remains confident in hitting 2026 expense and PCL guidance, and in delivering further structural cost savings and AI value.Positive Updates
Strong Earnings and Profitability
EPS increased 21% year-over-year; return on equity (ROE) was 14.4%, up over 200 basis points year-over-year. Management expects to outperform its fiscal 2026 targets (6–8% EPS growth and 13% ROE) if current macro conditions persist.
Negative Updates
AML Remediation Ongoing and Costly
AML remediation remains a top priority; remediation spend composition shifted toward validation and sustainability. Management reiterated roughly $500 million guidance for fiscal 2026 remediation costs; Q&A noted a sizable AML-related expense (~$173 million referenced) and elevated remediation-related costs in the U.S. that are expected to moderate in H2.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Earnings and Profitability
EPS increased 21% year-over-year; return on equity (ROE) was 14.4%, up over 200 basis points year-over-year. Management expects to outperform its fiscal 2026 targets (6–8% EPS growth and 13% ROE) if current macro conditions persist.
Read all positive updates
Company Guidance
Management reiterated and tightened its fiscal‑2026 targets and near‑term guidance: EPS growth target 6–8% (management said TD is on track to outperform that range), a medium‑term ROE target of 13% (quarter ROE 14.4%), and bank‑level expense growth of 3–4% (U.S. Banking mid‑single‑digit expense growth with ~USD 2.9B net income target for the U.S. segment). Credit guidance remains total PCLs of 40–50 bps for FY26 (Q2 PCLs 43 bps; impaired PCLs $973M; performing PCL $28M; allowance coverage ~97 bps). Capital and shareholder returns: CET1 14.3% after repurchasing ~19M shares (Q2 repurchases reduced CET1 ~41 bps) and a continued commitment to complete a $7B buyback; dividend raised $0.04 to $1.12/share. Operational targets reiterated include $2.0–$2.5B in structural cost reductions (about $900M delivered year‑to‑date), a $1B medium‑term AI value goal with a $200M 2026 AI target (≈$145M delivered at mid‑year), positive operating leverage for the fourth consecutive quarter, and NIM expectations of relatively stable Canadian margins and a modest NIM increase in U.S. banking next quarter.Toronto Dominion Bank Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 112.91B | 115.84B | 119.17B | 102.25B | 59.44B | 47.72B |
| Gross Profit | 59.79B | 56.78B | 52.00B | 48.59B | 44.70B | 42.49B |
| EBITDA | 20.54B | 25.81B | 12.86B | 14.80B | 22.19B | 19.20B |
| Net Income | 14.91B | 20.54B | 8.84B | 10.63B | 17.43B | 14.30B |
Balance Sheet | ||||||
| Total Assets | 2.09T | 2.09T | 2.06T | 1.96T | 1.92T | 1.73T |
| Cash, Cash Equivalents and Short-Term Investments | 446.59B | 156.06B | 230.49B | 116.51B | 156.98B | 194.67B |
| Total Debt | 692.29B | 663.58B | 662.56B | 568.66B | 502.06B | 400.86B |
| Total Liabilities | 1.96T | 1.97T | 1.95T | 1.84T | 1.81T | 1.63T |
| Stockholders Equity | 124.32B | 127.83B | 115.16B | 112.07B | 111.38B | 99.82B |
Cash Flow | ||||||
| Free Cash Flow | 12.98B | -71.79B | 52.76B | -67.15B | 37.49B | 49.00B |
| Operating Cash Flow | 15.35B | -69.65B | 54.94B | -65.30B | 38.95B | 50.13B |
| Investing Cash Flow | -2.10B | 86.19B | -45.42B | 76.23B | -31.89B | -45.27B |
| Financing Cash Flow | -12.78B | -15.50B | -9.81B | -12.85B | -4.82B | -5.04B |
Toronto Dominion Bank Technical Analysis
Positive
144.17
Price Trends
154.30
Positive
142.82
Positive
130.04
Positive
Market Momentum
4.97
Negative
76.80
Negative
85.64
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 144.17 is below the 20-day moving average (MA) of 163.59, below the 50-day MA of 154.30, and above the 200-day MA of 130.04, indicating a bullish trend. The MACD of 4.97 indicates Negative momentum. The RSI at 76.80 is Negative, neither overbought nor oversold. The STOCH value of 85.64 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$175.60B | 19.04 | 11.25% | 3.61% | -4.35% | 21.22% | |
72 Outperform | C$400.27B | 18.68 | 15.95% | 2.58% | 1.99% | 22.50% | |
70 Outperform | C$149.42B | 15.87 | 15.24% | 3.07% | -3.32% | 27.25% | |
69 Neutral | C$150.91B | 16.80 | 11.06% | 4.32% | -5.52% | 47.19% | |
68 Neutral | C$85.98B | 19.43 | 13.77% | 2.64% | 6.36% | 7.80% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | C$287.26B | 20.00 | 11.85% | 3.34% | -11.69% | -11.99% |
* Financial Sector Average
TSE:TD
Toronto Dominion Bank
170.03
73.41
75.98%
TSE:BMO
Bank Of Montreal
248.66
103.19
70.93%
TSE:BNS
Bank Of Nova Scotia
122.44
50.74
70.76%
TSE:CM
Canadian Bank of Commerce
161.25
67.01
71.11%
TSE:RY
Royal Bank Of Canada
288.01
113.82
65.34%
TSE:NA
National Bank of Canada
222.03
84.56
61.51%
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.