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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 10GRADE F
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
64.3%
Sector: 8.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, TORONTO DOMINION BANK (TD) receives a "Hold" rating with a composite score of 50.9/100, ranked #486 out of 4446 stocks. Key factor scores: Quality 10/100, Value 80/100, Momentum 74/100. This is quantitative analysis only — not investment advice.
TORONTO DOMINION BANK (TD) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does TORONTO DOMINION BANK Do?
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. TORONTO DOMINION BANK (TD) is classified as a large-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Bharat B. Masrani and employs approximately 93,700 people, headquartered in Toronto, Ontario. With a market capitalization of $158.0B, TD is one of the prominent companies in the Financials sector.
TORONTO DOMINION BANK (TD) Stock Rating — Hold (April 2026)
As of April 2026, TORONTO DOMINION BANK receives a Hold rating with a composite score of 50.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.TD ranks #486 out of 4,446 stocks in our coverage universe. Within the Financials sector, TORONTO DOMINION BANK ranks #155 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
TD Stock Price and 52-Week Range
TORONTO DOMINION BANK (TD) currently trades at $100.71. The stock gained $0.84 (0.8%) in the most recent trading session. The 52-week high for TD is $99.29, which means the stock is currently trading 1.4% from its annual peak. The 52-week low is $54.87, putting the stock 83.5% above its annual trough. Recent trading volume was 1.8M shares, reflecting moderate market activity.
Is TD Overvalued or Undervalued? — Valuation Analysis
TORONTO DOMINION BANK (TD) carries a value factor score of 80/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 12.09x, compared to the Financials sector average of 14.88x — a discount of 19%. The price-to-book ratio stands at 1.77x, versus the sector average of 1.22x. The price-to-sales ratio is 0.84x, compared to 0.90x for the average Financials stock. On an enterprise value basis, TD trades at 3.61x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, TORONTO DOMINION BANK appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
TORONTO DOMINION BANK Profitability — ROE, Margins, and Quality Score
TORONTO DOMINION BANK (TD) earns a quality factor score of 10/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 64.3%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 3.9% versus the sector average of 1.2%.
Net profit margin stands at 30.3%, versus 17.7% for the average Financials stock. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
TD Debt, Balance Sheet, and Financial Health
TORONTO DOMINION BANK has a debt-to-equity ratio of 189.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. Total debt on the balance sheet is $172.33B. Cash and equivalents stand at $5.36B.
TD has a beta of 0.60, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for TORONTO DOMINION BANK is 94/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
TORONTO DOMINION BANK Revenue and Earnings History — Quarterly Trend
In TTM 2026, TORONTO DOMINION BANK reported revenue of $48.38B and earnings per share (EPS) of $8.26. Net income for the quarter was $14.66B. Gross margin was 48.8%. Operating income came in at $24.78B.
In FY 2025, TORONTO DOMINION BANK reported revenue of $48.38B and earnings per share (EPS) of $8.26. Net income for the quarter was $14.66B. Gross margin was 48.8%. Revenue grew 17.8% year-over-year compared to FY 2024. Operating income came in at $24.78B.
In FY 2024, TORONTO DOMINION BANK reported revenue of $41.05B and earnings per share (EPS) of $3.39. Net income for the quarter was $6.34B. Gross margin was 53.3%. Revenue grew 12.4% year-over-year compared to FY 2023. Operating income came in at $19.19B.
In FY 2023, TORONTO DOMINION BANK reported revenue of $36.53B and earnings per share (EPS) of $3.98. Net income for the quarter was $7.66B. Gross margin was 59.1%. Revenue grew 1.6% year-over-year compared to FY 2022. Operating income came in at $14.95B.
Over the past 8 quarters, TORONTO DOMINION BANK has demonstrated a growth trajectory, with revenue expanding from $31.25B to $48.38B. Investors analyzing TD stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
TD Dividend Yield and Income Analysis
TORONTO DOMINION BANK (TD) does not currently pay a dividend. This is common among growth-oriented companies in the Banking industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.
TD Momentum and Technical Analysis Profile
TORONTO DOMINION BANK (TD) has a momentum factor score of 74/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 61/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 20/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
TD vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing TD against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full TD vs S&P 500 (SPY) comparison to assess how TORONTO DOMINION BANK stacks up against the broader market across all factor dimensions.
TD Next Earnings Date
No upcoming earnings date has been announced for TORONTO DOMINION BANK (TD) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy TD? — Investment Thesis Summary
TORONTO DOMINION BANK presents a balanced picture with arguments on both sides. The quality score of 10/100 flags below-average profitability. The value score of 80/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 74/100, suggesting the trend favors buyers. Low volatility (stability score 94/100) reduces downside risk.
In summary, TORONTO DOMINION BANK (TD) earns a Hold rating with a composite score of 50.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on TD stock.
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Institutional Research Dossier
TORONTO DOMINION BANK (TD) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Toronto-Dominion Bank (TD). While TD exhibits strong stability and attractive valuation metrics relative to its peers, concerns regarding its profitability, particularly its low Quality score of 10/100, and the potential for regulatory headwinds stemming from recent compliance issues, temper our enthusiasm. The bank's high debt-to-equity ratio also warrants caution, suggesting a need for careful monitoring of its capital structure.
TD's robust market capitalization and established presence in both Canada and the U.S. provide a solid foundation, but the path forward requires addressing profitability challenges and navigating a potentially stricter regulatory environment. Investors should carefully weigh the bank's valuation appeal against its operational and regulatory risks before making investment decisions.
Business Strategy & Overview
Toronto-Dominion Bank operates as a diversified financial services provider, generating revenue through three primary segments: Canadian Retail, U.S. Retail, and Wholesale Banking. The Canadian Retail segment offers a comprehensive suite of banking products and services to individuals and businesses, including deposits, loans, credit cards, and wealth management solutions. TD's extensive branch network and ATM presence in Canada provide a significant competitive advantage in this market. The U.S. Retail segment, operating under the 'America's Most Convenient Bank' brand, mirrors the Canadian model, focusing on retail banking and wealth management services across the United States. This geographic diversification is a key element of TD's overall strategy.
The Wholesale Banking segment caters to corporations, governments, and institutions, providing capital markets, corporate, and investment banking products and services. This includes underwriting, M&A advisory, trading, and funding solutions. TD's strategic alliance with Canada Post Corporation enhances its reach and accessibility, particularly in rural areas. The bank's digital and mobile banking platforms are also crucial for attracting and retaining customers in an increasingly digital landscape. TD's strategy emphasizes cross-selling opportunities across its various business lines, aiming to deepen customer relationships and increase revenue per customer.
TD's recent focus has been on expanding its U.S. presence and enhancing its digital capabilities. The bank has invested heavily in technology to improve customer experience and streamline operations. However, recent regulatory scrutiny and associated costs have presented challenges, requiring TD to allocate resources to compliance and risk management. The bank's strategic priorities include maintaining a strong capital position, managing expenses effectively, and driving organic growth across its core businesses. The bank's large scale allows it to invest in technology and talent that smaller competitors may struggle to afford.
Looking ahead, TD's success will depend on its ability to navigate the evolving regulatory landscape, manage credit risk effectively, and adapt to changing customer preferences. The bank's commitment to innovation and customer service will be critical for maintaining its competitive position. The bank's ability to successfully integrate acquired businesses and leverage its existing infrastructure will also be key drivers of future growth. The bank's focus on sustainable business practices and community involvement is also becoming increasingly important for attracting and retaining customers and employees.
Execution Benchmarks audit
Net Margin
Bottom-line conversion
30.3%
Sector: 17.7%
+71% VS SCTR
Economic Moat Analysis
TD's economic moat can be characterized as Narrow. While the bank benefits from certain advantages, they are not insurmountable and are subject to erosion over time. One source of TD's moat is its established brand reputation and customer loyalty, particularly in Canada. This intangible asset allows TD to command a premium and retain customers. The bank's extensive branch network and ATM presence also contribute to its moat by providing convenience and accessibility to customers. However, the rise of digital banking and fintech companies is challenging this advantage.
Switching costs in the banking industry are moderate. While customers may face some inconvenience when switching banks, the process is becoming increasingly streamlined, reducing the friction associated with changing providers. TD's large scale and efficient operations provide a cost advantage compared to smaller regional banks. However, this advantage is not significant enough to create a wide moat. The bank's regulatory compliance costs are also increasing, which could offset some of its cost advantages.
Network effects are not a significant driver of TD's moat. While the bank benefits from its large customer base, the value of its services does not increase exponentially as more customers join. TD's efficient scale is limited by regulatory constraints and geographic considerations. The bank cannot simply expand its operations without facing regulatory hurdles and competition from other established players.
The increasing competition from fintech companies and the evolving regulatory landscape pose significant threats to TD's moat. Fintech companies are offering innovative financial products and services that are often more convenient and cost-effective than traditional banking solutions. The regulatory environment is becoming increasingly complex, requiring TD to invest heavily in compliance and risk management. While TD's established brand and customer base provide some protection, the bank must continue to innovate and adapt to maintain its competitive position. The bank's ability to leverage its data and analytics capabilities will be crucial for personalizing its services and retaining customers.
Financial Health & Profitability
TD's financial health presents a mixed picture. The bank's revenue has shown consistent growth over the past several years, increasing from $28.10B in FY2017 to $48.38B in FY2025. However, net income has been more volatile, fluctuating from $6.34B in FY2024 to $14.66B in FY2025. The bank's free cash flow has also been inconsistent, with significant negative values in FY2017, FY2022, FY2023 and FY2024. This volatility raises concerns about the sustainability of the bank's earnings and cash flow generation.
TD's profitability metrics, such as gross margin and operating margin, have remained relatively stable over the past several years. However, the bank's ROE of 64.3% is significantly higher than the sector average of 8.5%, suggesting that TD is generating strong returns on equity. However, this high ROE should be viewed with caution, as it may be influenced by the bank's high leverage.
TD's balance sheet is characterized by a high level of debt. The bank's total debt of $172.33B significantly exceeds its total cash of $5.36B, resulting in a high debt-to-equity ratio of 189.00, which is higher than the sector average of 115.00. This high leverage increases the bank's financial risk and could limit its ability to invest in growth opportunities or withstand economic downturns. The bank's current ratio is not available, making it difficult to assess its short-term liquidity position.
Overall, TD's financial health is characterized by strong revenue growth, high ROE, and a high level of debt. The bank's inconsistent free cash flow and high leverage warrant careful monitoring. Investors should assess the bank's ability to manage its debt and generate sustainable earnings and cash flow in the future. The bank's capital adequacy ratios should also be closely monitored to ensure that it can meet its regulatory requirements and withstand potential losses.
Valuation Assessment
TD's valuation presents an interesting case. The bank's P/E ratio of 11.1x is lower than the sector average of 15.5x, suggesting that the stock may be undervalued relative to its peers. Similarly, the bank's EV/EBITDA ratio of 3.5x is in line with the sector average of 3.5x. However, these valuation metrics should be considered in the context of the bank's growth prospects and risk profile.
Given the bank's recent revenue growth and high ROE, a P/E ratio below the sector average may indicate an undervaluation. However, the bank's high leverage and inconsistent free cash flow could justify a lower valuation. The bank's valuation should also be compared to its historical valuation multiples to assess whether it is currently trading at a premium or discount.
The bank's free cash flow yield, calculated as free cash flow divided by market capitalization, is approximately 7.2%. This yield is relatively attractive, suggesting that the bank is generating a significant amount of cash relative to its market value. However, the bank's inconsistent free cash flow history raises concerns about the sustainability of this yield.
Overall, TD's valuation appears to be reasonable, but not necessarily a bargain. The bank's P/E ratio is below the sector average, but its high leverage and inconsistent free cash flow warrant caution. Investors should carefully assess the bank's growth prospects, risk profile, and historical valuation multiples before making an investment decision. A discounted cash flow analysis could provide a more comprehensive assessment of the bank's intrinsic value.
Risk & Uncertainty
TD faces several key risks that could impact its financial performance and valuation. Regulatory risk is a significant concern, particularly in light of recent compliance issues and increased scrutiny from regulators. Increased regulatory requirements could lead to higher compliance costs and potential fines, which could negatively impact the bank's profitability. The bank's exposure to the Canadian and U.S. housing markets also poses a risk, as a significant decline in housing prices could lead to increased loan losses.
Competition from other banks and fintech companies is another key risk. The banking industry is becoming increasingly competitive, with new entrants offering innovative financial products and services. TD must continue to innovate and adapt to maintain its competitive position. Credit risk is also a significant concern, particularly in the current economic environment. A slowdown in economic growth could lead to increased loan defaults and higher credit losses.
The bank's high leverage increases its financial risk and could limit its ability to withstand economic downturns. Interest rate risk is also a concern, as changes in interest rates could impact the bank's net interest margin and profitability. Operational risk, including cybersecurity threats and system failures, could also disrupt the bank's operations and lead to financial losses. The bank's reliance on key personnel also poses a risk, as the loss of key executives could negatively impact its performance.
Bulls Say / Bears Say
The Bull Case
BULL VIEWTD's strong presence in both Canada and the U.S. provides diversification and growth opportunities, making it well-positioned to benefit from economic expansion in both regions.
BULL VIEWThe bank's attractive valuation, with a P/E ratio below the sector average, suggests that the stock is undervalued and offers potential upside for investors.
BULL VIEWTD's high ROE demonstrates its ability to generate strong returns on equity, indicating efficient capital allocation and superior profitability compared to its peers.
The Bear Case
BEAR VIEWTD's high debt-to-equity ratio increases its financial risk and vulnerability to economic downturns, potentially limiting its ability to invest in growth or withstand losses.
BEAR VIEWThe bank's recent regulatory issues and potential fines could negatively impact its profitability and reputation, leading to a decline in investor confidence.
BEAR VIEWTD's inconsistent free cash flow generation raises concerns about the sustainability of its earnings and dividend payments, potentially impacting its long-term valuation.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score TD and 4,400+ other equities.
TORONTO DOMINION BANK exhibits a 8% valuation premium relative to institutional benchmarks. This represents a balanced risk/reward profile based on current multiples.
Return on Assets
Efficiency of asset utilization
3.9%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
—
Sector: 0.0%
Operating Margin
Core business profitability
—
Sector: 21.8%
Net Margin
Bottom-line profitability
30.3%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
