The Toronto-Dominion Bank (TD) (TD) Stock Analysis

Why this analysis is different

• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

The Toronto-Dominion Bank (TD) (TD) Financial Services Profile

The Toronto-Dominion Bank (TD) is a major player in North American banking, distinguished by its extensive retail network in both Canada and the U.S. With a diversified portfolio spanning personal, commercial, and investment banking, TD leverages its strong brand and strategic alliances to maintain a competitive edge in a dynamic financial landscape.

What Is the Investment Thesis for TD?

The Toronto-Dominion Bank presents a stable investment opportunity within the financial services sector. With a market capitalization of $209B and a P/E ratio of 19.0, TD demonstrates a solid financial foundation. A dividend yield of 2.90% provides a steady income stream for investors. The bank's diversified business model, spanning Canadian and U.S. retail operations, alongside its wholesale banking segment, mitigates risk. Ongoing: Growth catalysts include expanding its digital banking capabilities and capitalizing on cross-border opportunities. Potential: Risks include regulatory changes and economic downturns affecting loan performance. TD's beta of 0.84 suggests lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

TD Key Highlights

• Market capitalization of $209B reflects TD's significant presence and stability in the financial sector.
• P/E ratio of 19.0 indicates a reasonable valuation compared to earnings.
• Profit margin of 19.1% demonstrates efficient operations and profitability.
• Gross margin of 51.1% highlights the bank's ability to generate revenue from its services.
• Dividend yield of 2.90% provides a consistent return for investors.

Who Are TD's Competitors?

TD is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are TD's Key Strengths?

• Strong brand reputation and customer loyalty.
• Extensive branch network in Canada and the U.S.
• Diversified business model across multiple segments.
• Solid financial performance and capital base.

What Are TD's Weaknesses?

• Exposure to economic cycles in Canada and the U.S.
• Regulatory compliance costs.
• Competition from fintech companies.
• Dependence on interest rate environment.

What Could Drive TD Stock Higher?

• Expansion of digital banking platforms to enhance customer experience and attract new clients.
• Cross-border initiatives to capitalize on synergies between Canadian and U.S. operations.
• Growth in wealth management services driven by increasing demand for investment advice.
• Potential acquisitions of smaller banks or fintech companies to expand market share.
• Focus on sustainable finance and ESG initiatives to attract socially conscious investors.

What Are the Key Risks for TD?

• Financial-distress signal — its Altman Z-Score of 0.10 sits in the distress zone (elevated bankruptcy risk).
• Economic downturns in Canada and the U.S. could negatively impact loan performance and profitability.
• Increasing competition from traditional and non-traditional players in the financial services industry.
• Cybersecurity risks and data breaches could damage the bank's reputation and result in financial losses.
• Changes in the regulatory environment could increase compliance costs and limit business activities.
• Fluctuations in interest rates can impact net interest margin and overall profitability.

What Are the Growth Opportunities for TD?

• Growth opportunity 1: Expanding digital banking platforms represents a significant growth opportunity for TD. By investing in user-friendly mobile apps and online services, TD can attract and retain tech-savvy customers. The global digital banking market is projected to reach $1.6 trillion by 2027, offering a substantial market to capture. Timeline: Ongoing, with continuous enhancements and new features being rolled out.
• Growth opportunity 2: Cross-border expansion between Canada and the U.S. offers synergistic growth opportunities. TD can leverage its existing presence in both countries to offer seamless banking services to customers with cross-border financial needs. This includes services like cross-border payments, mortgages, and investment products. Timeline: Ongoing, with a focus on enhancing cross-border product offerings.
• Growth opportunity 3: Increasing wealth management services represents a lucrative growth area. As the global wealth management market continues to expand, TD can capitalize on this trend by offering personalized investment advice and wealth planning services to high-net-worth individuals and families. Timeline: Ongoing, with a focus on expanding its team of financial advisors and enhancing its wealth management platform.
• Growth opportunity 4: Strategic acquisitions can accelerate TD's growth and expand its market share. By acquiring smaller banks or fintech companies, TD can gain access to new technologies, customer segments, and geographic markets. Timeline: Opportunistic, with potential acquisitions being evaluated on an ongoing basis.
• Growth opportunity 5: Focusing on sustainable finance and ESG (Environmental, Social, and Governance) initiatives aligns with growing investor and customer demand. By offering green loans, sustainable investment products, and promoting environmentally responsible practices, TD can attract socially conscious customers and investors. Timeline: Ongoing, with a commitment to integrating ESG factors into its business operations.

What Opportunities Does TD Have?

• Expanding digital banking platforms.
• Cross-border growth between Canada and the U.S.
• Increasing wealth management services.
• Strategic acquisitions to expand market share.

What Threats Does TD Face?

• Economic downturns affecting loan performance.
• Increasing competition from traditional and non-traditional players.
• Cybersecurity risks and data breaches.
• Changes in regulatory environment.

What Are TD's Competitive Advantages?

• Extensive branch network in Canada and the U.S. provides a competitive advantage in terms of customer convenience.
• Strong brand recognition and customer loyalty.
• Diversified business model across retail, commercial, and investment banking segments.
• Robust risk management practices and a strong capital base.

What Does TD Do?

Founded in 1855 and headquartered in Toronto, Canada, The Toronto-Dominion Bank (TD) has evolved into one of the largest banks in North America. The bank operates through three primary segments: Canadian Retail, U.S. Retail, and Wholesale Banking. The Canadian Retail segment offers a comprehensive suite of financial products and services, including personal deposits, financing, investment options, and day-to-day banking solutions for businesses. In the U.S., TD operates under the 'America's Most Convenient Bank' brand, providing similar retail banking services. The Wholesale Banking segment delivers capital markets, corporate, and investment banking products and services to corporations, governments, and institutions. TD's offerings include underwriting, strategic advisory, trading, and investment services. With a vast network of branches and ATMs across Canada and the U.S., complemented by robust digital and mobile banking platforms, TD provides convenient access to its services. The bank also has a strategic alliance with Canada Post Corporation, further extending its reach and customer service capabilities. TD's commitment to innovation and customer-centricity has solidified its position as a leading financial institution.

What Products and Services Does TD Offer?

• Provides personal banking services, including checking and savings accounts.
• Offers business banking solutions, such as loans, cash management, and international trade services.
• Provides credit cards and payment processing services.
• Offers wealth management and investment advisory services.
• Provides capital markets and investment banking services.
• Offers auto finance and consumer lending services.
• Provides property and casualty insurance, as well as life and health insurance products.

How Does TD Make Money?

• Generates revenue from interest income on loans and mortgages.
• Earns fees from banking services, such as account maintenance and transaction processing.
• Collects commissions from wealth management and investment advisory services.
• Derives revenue from capital markets activities, including underwriting and trading.

What Industry Does TD Operate In?

The Toronto-Dominion Bank operates in the highly competitive banking industry, facing rivals such as JPMorgan Chase & Co. (JPM), Bank of America Corporation (BAC), Royal Bank of Canada (RY), Wells Fargo & Company (WFC), and Citigroup Inc. (C). The industry is characterized by evolving customer expectations, increasing regulatory scrutiny, and the emergence of fintech disruptors. TD's extensive branch network and digital banking platforms position it well to serve a diverse customer base. Market trends include a growing emphasis on digital banking, sustainable finance, and personalized customer experiences. The Canadian banking sector, in particular, is known for its stability and concentrated market share among a few major players.

Who Are TD's Key Customers?

• Individual consumers seeking personal banking services.
• Small and medium-sized businesses requiring financing and banking solutions.
• Large corporations and institutions needing capital markets and investment banking services.
• High-net-worth individuals seeking wealth management and investment advice.

TD Valuation & Market Position

With a $209B market cap, The Toronto-Dominion Bank (TD) sits in the mega-cap segment of the market. Relative to its peer group, TD's quantitative score of 49/100 is below the peer average of 59/100.

FY2026 estForward Outlook

Wall Street analysts project The Toronto-Dominion Bank (TD) revenue of about $57.56B for fiscal 2026, with EPS near $9.35.

F-Score 7/9Financial Health

The Toronto-Dominion Bank (TD)'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.10 places it in the distress zone, a signal of elevated financial risk.

ROE 12%Key Financial Metrics

Return on equity for The Toronto-Dominion Bank (TD) stands at 11.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.7%, showing how much profit it generates from its asset base. TD trades at a trailing price-to-earnings ratio of 19.04, roughly in line with the Financial Services sector average of ~18x. Its free cash flow yield is 4.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.28 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.2%, the inverse of the P/E and a quick read on earnings relative to price.

Net sellingInsider Activity

The most recent 4 insider filings for The Toronto-Dominion Bank (TD) break down as 3 sales and 1 purchases. On net that is roughly 60 shares disposed (about $30.0M), a signal worth weighing alongside the fundamentals.

TD Financials

TD Latest News

TD Analyst Consensus

TD MoonshotScore

Common Questions About TD (Financial Services)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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