TD Ameritrade Holding Corporation

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AMTD : NASDAQ :
$41.22 up 0.44 | 1.08%
Today's Range: 40.62 - 41.32
Avg. Daily Volume: 0
06/26/17 - 4:00 PM ET

Financial Analysis


TD AMERITRADE HOLDING CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has increased by 9.29% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)903.0847.0
EBITDA ($mil)402.0389.0
EBIT ($mil)358.0344.0
Net Income ($mil)214.0205.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)10958.010209.0
Total Assets ($mil)29165.027154.0
Total Debt ($mil)1765.01814.0
Equity ($mil)5325.04872.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin44.5245.93
EBITDA Margin44.5145.92
Operating Margin39.6540.61
Sales Turnover0.120.12
Return on Assets2.933.05
Return on Equity16.0517.01
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.250.27
Interest Expense14.014.0
Interest Coverage25.5724.57


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)528.0529.0
Div / share0.180.17
EPS0.40.38
Book value / share10.099.21
Institutional Own % n/a n/a
Avg Daily Volume2491935.03165547.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 21.38 for the Capital Markets industry and a value on par with the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 4.03 indicates a premium versus the S&P 500 average of 3.09 and a premium versus the industry average of 4.02. 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 premium 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 25.22 Peers 21.38   AMTD 19.84 Peers 18.26

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.

 

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 20.93 Peers 17.55   AMTD 7.98 Peers 1.27

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 significant premium to 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 4.03 Peers 4.02   AMTD 5.22 Peers 61.13

Average. 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 valuation on par with 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AMTD 6.25 Peers 4.03   AMTD 4.41 Peers 10.66

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AMTD significantly trails its peers on the basis of sales growth

 

 

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