The Toronto-Dominion Bank (TD.TO) stock analysis

In our weekly check, The Toronto-Dominion Bank is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 6.

About The Toronto-Dominion Bank

The Toronto-Dominion Bank is a Financial Services company (Banks - Diversified) based in Canada, listed on TSX as TD.TO.

What our checks show for TD.TO

Red flags

• The net margin fell by 15.6 points over 5 years, to 14.4%: the company keeps less of each sale as profit.
• The gross margin fell by 34.7 points, to 54.3%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 20% a year.
• Return on capital (ROCE) is only 1.1%.

Warning signs

• Earnings per share fell 0.4% a year over the last 3 years.
• Net profit fell 2.4% a year over the last 3 years.
• The stock has fallen as much as 57% from a peak. Would you have held through that?

Strengths

• Operating cash flow is 1.61x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 13.8% a year over the next years.
• Analysts expect the net margin to improve by 17 points from today's 14.4%.
• Revenue grew 23.8% a year over the last 3 years.
• Free cash flow is 20.8% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 48% of profit: there is a cushion.

Next earnings report: 2026-12-03

Similar companies

C · SAN · MUFG · WFC · RY · HSBC

Questions

What grade does The Toronto-Dominion Bank (TD.TO) have?

In our weekly check, The Toronto-Dominion Bank is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TD.TO stock?

This week's biggest flags for The Toronto-Dominion Bank: Margins falling, Gross margin falling, Weak revenue forecast. In total 9 of 25 checks show a warning or a red flag.

What does The Toronto-Dominion Bank do?

The Toronto-Dominion Bank is a Financial Services company (Banks - Diversified) based in Canada, listed on TSX as TD.TO.

When does The Toronto-Dominion Bank report earnings next?

The next earnings report is expected on 2026-12-03. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis