Toronto Dominion Bank (NYSE: TD)

Sector: Financial Services Industry: Banks - Diversified CIK: 0000947263
Market Cap 165.03 Bn
P/B 19.87
P/E 11.57
P/S 3.41
ROIC (Qtr) 0.00
Div Yield % 2.33
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 7.67 Bn
Debt/Equity (Qtr) 0.92
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About

Investment thesis

Bull case

  • Strong tangible asset base of 1480.12B provides 193.07x coverage of total debt 7.67B, indicating robust asset backing and low credit risk.
  • Free cash flow of (51.28B) provides excellent 9.37x coverage of dividends (5.47B), indicating sustainable shareholder returns.
  • Cash reserves of 83.52B provide ample 5.63x coverage of acquisition spending 14.85B, enabling strategic growth opportunities.
  • Strong tangible asset base of 1480.12B provides 99.70x coverage of acquisition spending 14.85B, enabling strategic growth.
  • Retained earnings of 55.94B provide strong 3.50x coverage of intangibles 15.99B, indicating quality earnings retention.

Bear case

  • Operating cash flow of (49.75B) barely covers its investment activities of 61.56B, with a coverage ratio of -0.81, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of (51.28B) provides weak coverage of capital expenditures of 1.53B, with a -33.47 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (49.75B) provides minimal -20.42x coverage of tax expenses of 2.44B, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of (49.75B) barely covers operating expenses of 9.65B with a -5.16 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • R&D investment of 0 represents just 0x of SG&A expenses of 18.66B, indicating potential underinvestment in innovation relative to administrative overhead.

Breakdown of Revenue (2025)

Breakdown of Revenue (2025)

Peer comparison

Companies in the Banks - Diversified
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 JPM Jpmorgan Chase & Co 1,043.32 Bn 33.97 9.59 942.38 Bn
2 BAC Bank Of America Corp /De/ 532.79 Bn 28.35 6.13 708.27 Bn
3 WFC Wells Fargo & Company/Mn 446.49 Bn 124.86 10.43 408.42 Bn
4 C Citigroup Inc 376.35 Bn 51.48 4.87 720.33 Bn
5 RY Royal Bank Of Canada 244.65 Bn 16.82 5.14 9.97 Bn
6 TD Toronto Dominion Bank 165.03 Bn 11.57 3.41 7.67 Bn
7 BK Bank of New York Mellon Corp 143.13 Bn 63.87 9.95 51.52 Bn
8 BMO Bank Of Montreal /Can/ 107.49 Bn 17.28 4.15 179.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.04 0.22
EV to Cash from Ops. EV/CFO -1.13 241.80
EV to Debt EV to Debt 7.30 2.53
EV to EBIT EV/EBIT 3.27 33.73
EV to EBITDA EV/EBITDA 2.58 25.98
EV to Free Cash Flow [EV/FCF] EV/FCF -1.09 245.05
EV to Market Cap EV to Market Cap 0.34 1.98
EV to Revenue EV/Rev 1.16 9.02
Price to Book Value [P/B] P/B 19.87 3.87
Price to Earnings [P/E] P/E 11.57 33.57
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.73 2.37
Dividend Payout Ratio % Div Payout % (Qtr) 27.00 29.28
Dividend per Basic Share Div per Share (Qtr) 2.23 2.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -5.36 15.72
Interest Coverage Interest Coverage 0.00 0.00
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 2.88 -5.81
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -34.65 -8.06
Dividend Growth (1y) % Div 1y % (Qtr) -41.62 -10.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 128.96 32.26
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 74.65 22.90
EBIT Growth (1y) % EBIT 1y % (Qtr) 104.68 30.58
EBT Growth (1y) % EBT 1y % (Qtr) 104.68 30.58
EPS Growth (1y) % EPS 1y % (Qtr) 141.11 38.83
FCF Growth (1y) % FCF 1y % (Qtr) -234.13 235.05
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 16.75 9.67
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.03
Cash Payout Ratio Cash Payout (Qtr) -0.11 0.17
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 0.92 3.24
Interest Cover Ratio Interest Cover Ratio 0.00 0.00
Times Interest Earned Times Interest Earned 0.00 0.00
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 38.50 38.15
EBIT Margin % EBIT Margin % (Qtr) 49.47 38.03
EBT Margin % EBT Margin % (Qtr) 35.33 33.01
Gross Margin % Gross Margin % (Qtr) 100.00 98.96
Net Profit Margin % Net Margin % (Qtr) 29.50 26.44