TD Ameritrade Holding Corp.
Find Ratings ReportsTD AMERITRADE HOLDING CORP's gross profit margin for the first quarter of its fiscal year 2018 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry.
At the same time, stockholders' equity ("net worth") has greatly increased by 42.96% from the same quarter last year.
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| Income Statement | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Net Sales ($mil) | 1257.0 | 859.0 |
| EBITDA ($mil) | 588.0 | 399.0 |
| EBIT ($mil) | 516.0 | 356.0 |
| Net Income ($mil) | 297.0 | 216.0 |
| Balance Sheet | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Cash & Equiv. ($mil) | 11780.0 | 10925.0 |
| Total Assets ($mil) | 39412.0 | 28834.0 |
| Total Debt ($mil) | 2678.0 | 1769.0 |
| Equity ($mil) | 7433.0 | 5199.0 |
| Profitability | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Gross Profit Margin | 46.78 | 46.45 |
| EBITDA Margin | 46.77 | 46.44 |
| Operating Margin | 41.05 | 41.44 |
| Sales Turnover | 0.1 | 0.12 |
| Return on Assets | 2.41 | 2.93 |
| Return on Equity | 12.82 | 16.27 |
| Debt | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Current Ratio | 0.0 | 0.0 |
| Debt/Capital | 0.26 | 0.25 |
| Interest Expense | 20.0 | 14.0 |
| Interest Coverage | 25.8 | 25.43 |
| Share Data | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Shares outstanding (mil) | 567.0 | 528.0 |
| Div / share | 0.21 | 0.18 |
| EPS | 0.52 | 0.41 |
| Book value / share | 13.11 | 9.85 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 3268235.0 | 2179938.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 27.88 for the Capital Markets industry and a significant premium compared to the S&P 500 average of 24.51. To use another comparison, its price-to-book ratio of 4.62 indicates a premium versus the S&P 500 average of 3.18 and a discount versus the industry average of 6.10. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, TD AMERITRADE HOLDING CORP seems to be trading at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AMTD 34.63 | Peers 27.88 | AMTD 86.42 | Peers 28.71 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. AMTD is trading at a premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. AMTD is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| AMTD 15.74 | Peers 16.70 | AMTD 0.38 | Peers 0.85 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. AMTD is trading at a premium to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. AMTD trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| AMTD 4.62 | Peers 6.10 | AMTD 10.06 | Peers 38.80 | |||||||||||||||||||||
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Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AMTD is trading at a discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, AMTD is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| AMTD 8.44 | Peers 5.15 | AMTD 20.74 | Peers 15.61 | |||||||||||||||||||||
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Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AMTD is trading at a significant premium to its industry. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. AMTD has a sales growth rate that significantly exceeds its peers. |
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