Fact based stock research
Toronto Dominion Bank (TSX:TD)

CA8911605092

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Toronto Dominion Bank stock research in summary

td.com

ANALYSIS: With an Obermatt Combined Rank of 10 (worse than 90% compared with investment alternatives), Toronto Dominion Bank (Diversified Banks, Canada) shares have lower financial characteristics compared with similar stocks. Shares of Toronto Dominion Bank are low in value (priced high) with a consolidated Value Rank of 44 (worse than 56% of alternatives) and show below-average growth (Growth Rank of 4) but are safely financed (Safety Rank of 50), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 10, is a sell recommendation based on Toronto Dominion Bank's financial characteristics. As the company Toronto Dominion Bank's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 44) and low growth (Obermatt Growth Rank of 4), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 50) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	44
Growth Rank	4
Safety Rank	50
Combined Rank	10

Country	Canada
Industry	Diversified Banks
Index	Recycling, TSX Composite
Size class	XX-Large

27-Mar-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Toronto Dominion Bank

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	65	66	89	44
GROWTH
GROWTH	61	59	1	4
SAFETY
SAFETY	79	41	46	50
SENTIMENT
SENTIMENT	45	12	5	^new
360° VIEW
360° VIEW	87	42	16	^new

Most recent update of the stock research: 27-Mar-2025. Financial reporting date used for calculating ranks: 31-Oct-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Toronto Dominion Bank is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	65	66	89	44
GROWTH
GROWTH	61	59	1	4
SAFETY
SAFETY	79	41	46	50
COMBINED
COMBINED	95	58	42	10

Last update of combined financial performance: 27-Mar-2025. Stock analysis on combined financial performance: The higher the rank of Toronto Dominion Bank the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 44 (worse than 56% compared with alternatives), Toronto Dominion Bank shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Toronto Dominion Bank. Price-to-Sales (P/S) is 75, which means that the stock price compared with what market professionals expect for future sales is lower than for 75% of comparable companies, indicating a good value concerning Toronto Dominion Bank's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 92, which means that dividends are expected to be higher than for 92% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 75% of alternatives (only 25% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 86% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 44, is a hold recommendation based on Toronto Dominion Bank's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	45	77	85	75
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	71	67	83	14
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	13	27	31	25
DIVIDEND YIELD
DIVIDEND YIELD	89	90	96	92
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	65	66	89	44

Last update of Value Rank: 27-Mar-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Toronto Dominion Bank; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 4 (better than 4% compared with alternatives), Toronto Dominion Bank shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Toronto Dominion Bank. Sales Growth has a rank of 19, which means that currently professionals expect the company to grow less than 81% of its competitors. The same is valid for Profit Growth, with a rank of 14, and Capital Growth with 4. In addition, Stock Returns have a below market rank of 26, which means that the stock returns have recently been below 74% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 4, is a sell recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	68	90	12	19
PROFIT GROWTH
PROFIT GROWTH	14	53	16	14
CAPITAL GROWTH
CAPITAL GROWTH	77	21	5	4
STOCK RETURNS
STOCK RETURNS	61	63	15	26
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	61	59	1	4

Last update of Growth Rank: 27-Mar-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Toronto Dominion Bank.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 50 (better than 50% compared with alternatives), the company Toronto Dominion Bank has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Toronto Dominion Bank is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Toronto Dominion Bank. Refinancing is at 59, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 59% of its competitors. Liquidity is also good at 81, meaning the company generates more profit to service its debt than 81% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 9, which means the company has an above-average debt-to-equity ratio. It has more debt than 91% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 50 (better than 50% compared with alternatives), Toronto Dominion Bank has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Toronto Dominion Bank could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Toronto Dominion Bank and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	2	4	9	9
REFINANCING
REFINANCING	76	52	52	59
LIQUIDITY
LIQUIDITY	97	83	82	81
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	79	41	46	50

Last update of Safety Rank: 27-Mar-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Toronto Dominion Bank and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	38	31	^new
OPINIONS CHANGE
OPINIONS CHANGE	42	4	50	^new
PRO HOLDINGS
PRO HOLDINGS	25	6	3	^new
MARKET PULSE
MARKET PULSE	82	79	26	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	45	12	5	^new

Last update of Sentiment Rank: 27-Mar-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Toronto Dominion Bank.
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