Toronto-Dominion Bank/The reports 11.5% Net Income growth and 9.1% Revenue growth
01.12.2016 • About Toronto-Dominion Bank/The (
$TD) • By InTwits
Toronto-Dominion Bank/The reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Toronto-Dominion Bank/The has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 5,768,000 in FY2016, 8,548,933 in FY2015, 8,923,568 in FY2014, 14,227,777 in FY2013, 15,467,862 in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Toronto-Dominion Bank/The ($TD) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 30,334 | 33,800 | 36,305 | 37,532 | 40,952 | 9.1% |
| Net Income | 6,367 | 6,535 | 7,776 | 7,912 | 8,821 | 11.5% |
Balance Sheet
|
|---|
| Cash | 3,436 | 3,581 | 2,781 | 3,154 | 3,907 | 23.9% |
| Short Term Debt | 38,816 | 41,829 | 39,465 | 38,803 | 33,115 | -14.7% |
| Long Term Debt | 13,542 | 7,982 | 7,785 | 8,637 | 10,891 | 26.1% |
Cash flow
|
|---|
| Capex | 827 | 745 | 837 | 972 | 797 | -18.0% |
Ratios
|
|---|
| Revenue growth | 4.9% | 11.4% | 7.4% | 3.4% | 9.1% | |
| Net Income Margin | 21.0% | 19.3% | 21.4% | 21.1% | 21.5% | 0.5% |
| CAPEX, % of revenue | 2.7% | 2.2% | 2.3% | 2.6% | 1.9% | -0.6% |
| ROIC | 5.9% | 5.4% | 6.1% | 5.4% | 6.1% | 0.7% |
| ROE | 14.8% | 14.0% | 15.4% | 13.6% | 13.3% | -0.3% |
Toronto-Dominion Bank/The ($TD) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 10,182 | 9,849 | 10,372 | 10,549 | 10.4% | 6.5% | 8.3% | 11.2% |
| Net Income | 2,194 | 2,024 | 2,329 | 2,274 | 7.9% | 10.5% | 4.1% | 25.6% |
Balance Sheet
|
|---|
| Cash | 3,204 | 3,292 | 3,593 | 3,907 | 10.5% | 11.8% | 1.4% | 23.9% |
| Short Term Debt | 41,876 | 40,726 | 44,564 | 33,115 | 20.1% | 25.4% | 29.8% | -14.7% |
| Long Term Debt | 7,695 | 8,893 | 8,941 | 10,891 | -1.1% | 27.9% | 5.7% | 26.1% |
Ratios
|
|---|
| Net Income Margin | 21.5% | 20.6% | 22.5% | 21.6% | -0.5% | 0.7% | -0.9% | 2.5% |
Revenue and profitability
Toronto-Dominion Bank/The's Revenue increased on 9.1%. Revenue growth showed acceleration in FY16Q4 - it increased 11.2% YoY.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 1.9%. Toronto-Dominion Bank/The showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at good ROE (13.26%) while ROIC is low (6.08%). ROIC increased slightly on 0.67 pp from 5.4% to 6.1% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt decreased on 7.2% while cash surged on 23.9%.
Management team
Toronto-Dominion Bank/The's CEO Bharat B Masrani has spent 4 years at the company. Toronto-Dominion Bank/The's CFO is Riaz Ahmed. Riaz Ahmed has 2 years tenure at the company.
Appendix 1: Peers in Financial
Below you can find Toronto-Dominion Bank/The benchmarking vs. other companies in Financial industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | 317.2% | |
| StorageVault Canada Inc ($SVI) | | 22.2% | 7.5% | 111.8% | |
| Slate Retail REIT ($SRT.UN) | | 316.8% | 229.7% | 92.5% | 21.6% |
| Mogo Finance Technology Inc ($GO) | | 13.7% | 34.6% | 86.0% | 14.6% |
| Morguard Corp ($MRC) | | 27.2% | 9.2% | 58.8% | 4.6% |
| |
|---|
| Median (54 companies) | | 7.1% | 9.0% | 3.3% | 5.2% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Olympia Financial Group Inc ($OLY) | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% |
| Morguard Corp ($MRC) | 74.0% | 69.9% | 68.6% | 76.5% | 75.5% |
| Mogo Finance Technology Inc ($GO) | 70.4% | 64.5% | 63.4% | 62.3% | |
| StorageVault Canada Inc ($SVI) | 18.2% | 22.6% | 18.3% | 52.4% | |
| Clarke Inc ($CKI) | 28.1% | 20.0% | 18.9% | 43.4% | 41.6% |
| |
|---|
| Median (9 companies) | 28.1% | 30.7% | 28.3% | 43.4% | 30.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 87.6% | 87.9% | 88.8% | 86.6% | |
| Equitable Group Inc ($EQB) | 88.1% | 87.4% | 86.0% | 84.7% | 83.0% |
| Atrium Mortgage Investment Corp ($AI) | 79.8% | | | 81.9% | 83.2% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | 76.2% | |
| First National Financial Corp ($FN) | 67.8% | 76.5% | 77.1% | 74.6% | |
| |
|---|
| Median (37 companies) | 43.7% | 33.5% | 39.8% | 32.5% | 43.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dundee Corp ($DC.A) | 10.3% | 14.1% | 88.8% | 123.6% | |
| Gazit-Globe Ltd ($GZT) | 80.2% | 43.3% | 52.1% | 69.3% | 95.5% |
| First Capital Realty Inc ($FCR) | 127.9% | 76.1% | 73.8% | 56.7% | 79.7% |
| Killam Properties Inc ($KMP) | 80.7% | 114.1% | 143.5% | 46.7% | 59.9% |
| StorageVault Canada Inc ($SVI) | 150.5% | 73.3% | 79.1% | 21.4% | |
| |
|---|
| Median (56 companies) | 0.6% | 0.6% | 0.7% | 0.7% | 0.7% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CI Financial Corp ($CIX) | | | | | 24.1% |
| FirstService Corp ($FSV) | | | | | 17.4% |
| IGM Financial Inc ($IGM) | 14.2% | 14.2% | 13.7% | 13.7% | 13.1% |
| Alaris Royalty Corp ($AD) | 9.5% | 10.1% | 10.7% | 7.3% | 12.3% |
| Genworth MI Canada Inc ($MIC) | 11.9% | 9.6% | 9.7% | 9.5% | 9.4% |
| |
|---|
| Median (56 companies) | 4.6% | 3.8% | 3.9% | 3.0% | 3.1% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($EFN) | 140.2x | 31.9x | 37.6x | 79.9x | 22.6x |
| First National Financial Corp ($FN) | 34.3x | 33.7x | 40.9x | 37.4x | |
| StorageVault Canada Inc ($SVI) | 11.2x | 9.7x | 13.6x | 35.7x | |
| Gazit-Globe Ltd ($GZT) | 12.8x | 12.7x | 15.3x | 22.1x | 15.2x |
| Equitable Group Inc ($EQB) | 11.8x | 10.2x | 9.8x | 12.3x | 13.7x |
| |
|---|
| Median (28 companies) | 5.3x | 4.6x | 4.7x | 6.0x | 7.8x |
|---|
