BANK OF MONTREAL (BMO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BMO - CA0636711016 - Common Stock
178.4 CAD
-0.03 (-0.02%)
BMO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 23 industry peers in the Banks industry. BMO may be in some trouble as it scores bad on both profitability and health. BMO is quite expensive at the moment. It does show a decent growth rate. BMO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BMO was profitable.
BMO had a positive operating cash flow in the past year.
In the past 5 years BMO has always been profitable.
BMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BMO (0.56%) is worse than 69.57% of its industry peers.
With a Return On Equity value of 9.40%, BMO is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 9.4% | ||
| ROIC | N/A |
ROA(3y)0.45%
ROA(5y)0.66%
ROE(3y)7.67%
ROE(5y)10.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BMO has a Profit Margin of 22.81%. This is in the lower half of the industry: BMO underperforms 65.22% of its industry peers.
BMO's Profit Margin has improved in the last couple of years.
BMO does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 22.81% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-16.71%
PM growth 5Y3.44%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
BMO does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, BMO has less shares outstanding
The number of shares outstanding for BMO has been increased compared to 5 years ago.
Compared to 1 year ago, BMO has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of BMO is 29.36, which is on the high side as it means it would take BMO, 29.36 years of fcf income to pay off all of its debts.
BMO's Debt to FCF ratio of 29.36 is in line compared to the rest of the industry. BMO outperforms 43.48% of its industry peers.
A Debt/Equity ratio of 2.79 is on the high side and indicates that BMO has dependencies on debt financing.
With a Debt to Equity ratio value of 2.79, BMO is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 29.36 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.33%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.59% over the past year.
BMO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.56% yearly.
Looking at the last year, BMO shows a quite strong growth in Revenue. The Revenue has grown by 10.61% in the last year.
BMO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.57% yearly.
EPS 1Y (TTM)25.59%
EPS 3Y-2.79%
EPS 5Y9.56%
EPS Q2Q%72.63%
Revenue 1Y (TTM)10.61%
Revenue growth 3Y2.47%
Revenue growth 5Y7.57%
Sales Q2Q%11.63%
3.2 Future
The Earnings Per Share is expected to grow by 5.35% on average over the next years.
BMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.13% yearly.
EPS Next Y11.95%
EPS Next 2Y12.1%
EPS Next 3Y5.77%
EPS Next 5Y5.35%
Revenue Next Year3.18%
Revenue Next 2Y3.41%
Revenue Next 3Y3.01%
Revenue Next 5Y3.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.66, the valuation of BMO can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of BMO indicates a slightly more expensive valuation: BMO is more expensive than 69.57% of the companies listed in the same industry.
BMO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.09, BMO is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMO indicates a slightly more expensive valuation: BMO is more expensive than 73.91% of the companies listed in the same industry.
BMO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 13.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.92 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BMO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.23
PEG (5Y)1.53
EPS Next 2Y12.1%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 3.76%.
BMO's Dividend Yield is rather good when compared to the industry average which is at 3.01. BMO pays more dividend than 82.61% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, BMO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
5.2 History
The dividend of BMO is nicely growing with an annual growth rate of 12.66%!
BMO has been paying a dividend for at least 10 years, so it has a reliable track record.
BMO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.66%
Div Incr Years3
Div Non Decr Years34
5.3 Sustainability
BMO pays out 60.81% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BMO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.81%
EPS Next 2Y12.1%
EPS Next 3Y5.77%
TSX:BMO (12/24/2025, 7:00:00 PM)
178.4
-0.03 (-0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.34%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap126.95B
Revenue(TTM)36.27B
Net Income(TTM)8.27B
Analysts65.26
Price Target184.47 (3.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend7
Dividend Growth(5Y)12.66%
DP60.81%
Div Incr Years3
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.74%
Min EPS beat(2)7.03%
Max EPS beat(2)8.45%
EPS beat(4)4
Avg EPS beat(4)10.72%
Min EPS beat(4)2.34%
Max EPS beat(4)25.04%
EPS beat(8)4
Avg EPS beat(8)-0.97%
EPS beat(12)5
Avg EPS beat(12)-2.57%
EPS beat(16)6
Avg EPS beat(16)-1.13%
Revenue beat(2)2
Avg Revenue beat(2)1.47%
Min Revenue beat(2)0.33%
Max Revenue beat(2)2.6%
Revenue beat(4)3
Avg Revenue beat(4)2.24%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)7.39%
Revenue beat(8)3
Avg Revenue beat(8)-0.25%
Revenue beat(12)4
Avg Revenue beat(12)-2.95%
Revenue beat(16)7
Avg Revenue beat(16)3.58%
PT rev (1m)5.72%
PT rev (3m)5.96%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)-1.23%
EPS NY rev (1m)0.96%
EPS NY rev (3m)3.58%
Revenue NQ rev (1m)1.84%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 13.09 | ||
| P/S | 3.5 | ||
| P/FCF | 14.92 | ||
| P/OCF | 12.4 | ||
| P/B | 1.44 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | N/A |
EPS(TTM)12.17
EY6.82%
EPS(NY)13.62
Fwd EY7.64%
FCF(TTM)11.96
FCFY6.7%
OCF(TTM)14.39
OCFY8.07%
SpS50.97
BVpS123.73
TBVpS93.44
PEG (NY)1.23
PEG (5Y)1.53
Graham Number184.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 9.4% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.81% | ||
| GM | N/A | ||
| FCFM | 23.46% |
ROA(3y)0.45%
ROA(5y)0.66%
ROE(3y)7.67%
ROE(5y)10.96%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-16.71%
PM growth 5Y3.44%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 29.36 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 79.31% | ||
| Cap/Sales | 4.77% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 102.88% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC13.33%
ROIC/WACCN/A
Cap/Depr(3y)77.78%
Cap/Depr(5y)80.03%
Cap/Sales(3y)5.09%
Cap/Sales(5y)4.64%
Profit Quality(3y)219.61%
Profit Quality(5y)251.73%
High Growth Momentum
Growth
EPS 1Y (TTM)25.59%
EPS 3Y-2.79%
EPS 5Y9.56%
EPS Q2Q%72.63%
EPS Next Y11.95%
EPS Next 2Y12.1%
EPS Next 3Y5.77%
EPS Next 5Y5.35%
Revenue 1Y (TTM)10.61%
Revenue growth 3Y2.47%
Revenue growth 5Y7.57%
Sales Q2Q%11.63%
Revenue Next Year3.18%
Revenue Next 2Y3.41%
Revenue Next 3Y3.01%
Revenue Next 5Y3.13%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-66.14%
FCF growth 3Y34.36%
FCF growth 5Y-29.77%
OCF growth 1Y-61.65%
OCF growth 3Y27.36%
OCF growth 5Y-27.42%
BANK OF MONTREAL / BMO.CA FAQ
What is the ChartMill fundamental rating of BANK OF MONTREAL (BMO.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to BMO.CA.
What is the valuation status of BANK OF MONTREAL (BMO.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to BANK OF MONTREAL (BMO.CA). This can be considered as Overvalued.
What is the profitability of BMO stock?
BANK OF MONTREAL (BMO.CA) has a profitability rating of 3 / 10.
How financially healthy is BANK OF MONTREAL?
The financial health rating of BANK OF MONTREAL (BMO.CA) is 1 / 10.
Is the dividend of BANK OF MONTREAL sustainable?
The dividend rating of BANK OF MONTREAL (BMO.CA) is 7 / 10 and the dividend payout ratio is 60.81%.