Toronto-Dominion Bank (TD) Stock Analysis
This is a peer-relative look at Toronto-Dominion Bank (TD): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Banks peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | TD |
|---|---|
| Name | Toronto-Dominion Bank |
| Country/Region | Canada |
| GICS Sector | Financials |
| GICS Industry Group | Banks |
| GICS Industry | Banks |
| GICS Sub-Industry | Diversified Banks |
| Market Capitalization | 203.49 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | August 30, 1996 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: TD | Industry group median |
|---|---|---|
| Total Return (1Y) | 57.37% | 31.23% |
| Total Return (3Y, Annualized) | 34.26% | 28.55% |
| Total Return (5Y, Annualized) | 15.98% | 10.07% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: TD | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 18.32% | 24.40% |
| Beta (5Y) | 0.72 | 0.73 |
| Max Drawdown (5Y) | -31.16% | -43.52% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: TD | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 2.89 | 1.04 |
| Sortino Ratio (1Y) | 4.39 | 1.58 |
Profitability
ROE (TTM)
Toronto-Dominion Bank (TD) posts ROE of 12.83%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
TD
Banks industry group
12.83%
Group distribution
- Max
- 19.41%
- Q3
- 13.49%
- TD
- 12.83%
- Median
- 11.36%
- Q1
- 9.48%
- Min
- 3.81%
Largest peers
- JPM
- 18.01%
- RY
- 16.21%
- HSBC
- 13.11%
- WFC
- 12.91%
- TD
- 12.83%
- BAC
- 10.73%
- MUFG
- 9.46%
Net Margin (TTM)
Toronto-Dominion Bank (TD) keeps 26.62% of revenue as net profit, in the lower peer quartile for net margin. More of each sales dollar is being absorbed by costs, financing, taxes, or other charges than at most peers.
TD
Banks industry group
26.62%
Group distribution
- Max
- 47.33%
- Q3
- 35.30%
- Median
- 31.10%
- Q1
- 27.27%
- TD
- 26.62%
- Min
- 16.98%
Largest peers
- HSBC
- 37.80%
- JPM
- 34.59%
- RY
- 33.87%
- BAC
- 28.06%
- WFC
- 27.64%
- MUFG
- 27.45%
- TD
- 26.62%
Operating Margin (TTM)
operating margin is set aside for Toronto-Dominion Bank (TD) in Banks: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.
Profitability Metrics
| Metric | Current stock: TD | Industry group median |
|---|---|---|
| ROE (TTM) | 12.83% | 11.36% |
| ROA (TTM) | 0.78% | 1.24% |
| Net Margin (TTM) | 26.62% | 31.10% |
| Operating Margin (TTM) | -- | -- |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Toronto-Dominion Bank (TD) grew revenue 8.93%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
Toronto-Dominion Bank (TD) grew earnings per share 144.92%, above the industry benchmark range. Profits are compounding faster than at any typical peer, though a depressed base year can inflate the percentage, so the level of earnings matters alongside the rate.
Growth Metrics
| Metric | Current stock: TD | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 8.93% | 11.23% |
| Revenue Growth (3Y CAGR) | 10.22% | 6.24% |
| EPS Growth (YoY) | 144.92% | 16.06% |
| EPS Growth (3Y CAGR) | 6.87% | 2.73% |
Financial Strength
Current Ratio (MRQ)
current ratio is set aside for Toronto-Dominion Bank (TD) in Banks: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.
Debt / Equity (MRQ)
debt-to-equity ratio is set aside for Toronto-Dominion Bank (TD) in Banks: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.
Financial Strength Metrics
| Metric | Current stock: TD | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Toronto-Dominion Bank (TD) has dividend yield of 3.46%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.
TD
Banks industry group
3.46%
Group distribution
- Max
- 5.71%
- TD
- 3.46%
- Q3
- 3.12%
- Median
- 2.29%
- Q1
- 0.97%
- Min
- 0.00%
Largest peers
- MUFG
- 401.68%
- TD
- 3.46%
- RY
- 3.26%
- BAC
- 2.27%
- WFC
- 2.23%
- JPM
- 1.83%
- HSBC
- 0.82%
Dividend Payout Ratio (TTM)
Toronto-Dominion Bank (TD) has payout ratio of 46.36%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
TD
Banks industry group
46.36%
Group distribution
- Max
- 68.56%
- TD
- 46.36%
- Q3
- 42.20%
- Median
- 29.17%
- Q1
- 19.91%
- Min
- 0.00%
Largest peers
- HSBC
- 53.57%
- TD
- 46.36%
- RY
- 41.49%
- MUFG
- 34.74%
- WFC
- 26.16%
- BAC
- 25.87%
- JPM
- 25.71%
Dividend Metrics
| Metric | Current stock: TD | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 3.46% | 2.29% |
| Dividend Payout Ratio (TTM) | 46.36% | 29.17% |
Valuation
P/E Ratio (TTM)
Toronto-Dominion Bank (TD) trades at P/E ratio of 18.49, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
TD
Banks industry group
18.49
Group distribution
- Max
- 18.61
- TD
- 18.49
- Q3
- 13.99
- Median
- 12.13
- Q1
- 10.90
- Min
- 7.07
Largest peers
- TD
- 18.49
- RY
- 17.58
- JPM
- 13.91
- MUFG
- 13.77
- HSBC
- 12.95
- BAC
- 12.07
- WFC
- 11.62
P/S Ratio (TTM)
P/S ratio is not assessed for Toronto-Dominion Bank (TD) in Banks: the revenue line is driven by spread economics rather than conventional product or service sales, so book value or earnings usually carry more weight.
P/B Ratio (MRQ)
Toronto-Dominion Bank (TD) trades at 2.31 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
TD
Banks industry group
2.31
Group distribution
- TD
- 2.31
- Max
- 2.31
- Q3
- 1.59
- Median
- 1.33
- Q1
- 1.10
- Min
- 0.41
Largest peers
- HSBC
- 7.20
- RY
- 2.92
- JPM
- 2.51
- TD
- 2.31
- MUFG
- 1.65
- WFC
- 1.56
- BAC
- 1.29
Valuation Metrics
| Metric | Current stock: TD | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 18.49 | 12.13 |
| P/S Ratio (TTM) | -- | -- |
| P/B Ratio (MRQ) | 2.31 | 1.33 |
| Free Cash Flow Yield (TTM) | -- | -- |