TD Ameritrade Holding Corporation

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AMTD : NASDAQ :
$35.24 up 0.77 | 2.23%
Today's Range: 34.63 - 35.39
Avg. Daily Volume: 0
09/30/16 - 4:00 PM ET

Financial Analysis


TD AMERITRADE HOLDING CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)838.0794.0
EBITDA ($mil)391.0370.0
EBIT ($mil)347.0325.0
Net Income ($mil)240.0196.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)9385.06658.0
Total Assets ($mil)27107.025159.0
Total Debt ($mil)1828.01810.0
Equity ($mil)4972.04993.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin46.6646.6
EBITDA Margin46.6546.59
Operating Margin41.4140.93
Sales Turnover0.120.13
Return on Assets3.223.21
Return on Equity17.5516.18
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.270.27
Interest Expense13.013.0
Interest Coverage26.6925.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)527.0543.0
Div / share0.170.15
EPS0.450.36
Book value / share9.439.2
Institutional Own % n/a n/a
Avg Daily Volume2731067.02907053.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.00 for the Capital Markets industry and a discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 3.57 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 5.51. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, TD AMERITRADE HOLDING CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AMTD 20.78 Peers 22.00   AMTD 15.56 Peers 15.22

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

AMTD is trading at a valuation on par with its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AMTD 20.04 Peers 19.21   AMTD 2.58 Peers 1.46

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

AMTD is trading at a valuation on par with its peers.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AMTD 3.57 Peers 5.51   AMTD 9.45 Peers 6.96

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 significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

AMTD is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AMTD 5.33 Peers 4.60   AMTD 3.64 Peers -0.86

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 premium to its industry on this measurement.

 

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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