BANK OF MONTREAL (BMO.CA) Stock Fundamental Analysis
TSX:BMO - CA0636711016 - Common Stock
166.19 CAD
+2.16 (+1.32%)
We assign a fundamental rating of 3 out of 10 to BMO. BMO was compared to 27 industry peers in the Banks industry. Both the profitability and financial health of BMO have multiple concerns. BMO is valied quite expensively at the moment, while 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.
Each year in the past 5 years BMO has been profitable.
BMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BMO's Return On Assets of 0.58% is on the low side compared to the rest of the industry. BMO is outperformed by 85.19% of its industry peers.
Looking at the Return On Equity, with a value of 9.57%, BMO is doing worse than 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 9.57% | ||
| ROIC | N/A |
ROA(3y)0.65%
ROA(5y)0.65%
ROE(3y)10.78%
ROE(5y)10.79%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BMO has a worse Profit Margin (23.12%) than 77.78% of its industry peers.
BMO's Profit Margin has been stable in the last couple of years.
The Operating Margin and Gross Margin are not available for BMO so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 23.12% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-8.54%
PM growth 5Y-0.59%
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.
The number of shares outstanding for BMO has been increased compared to 1 year ago.
Compared to 5 years ago, BMO has more shares outstanding
BMO has about the same debt/assets ratio as last year.
2.2 Solvency
The Debt to FCF ratio of BMO is 455.97, which is on the high side as it means it would take BMO, 455.97 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 455.97, BMO is doing worse than 92.59% of the companies in the same industry.
BMO has a Debt/Equity ratio of 2.69. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BMO (2.69) is worse than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 455.97 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.05%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
BMO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.79%.
BMO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.55% yearly.
The Revenue has grown by 11.61% in the past year. This is quite good.
Measured over the past years, BMO shows a small growth in Revenue. The Revenue has been growing by 5.17% on average per year.
EPS 1Y (TTM)1.79%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%22.35%
Revenue 1Y (TTM)11.61%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%9.53%
3.2 Future
Based on estimates for the next years, BMO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.12% on average per year.
Based on estimates for the next years, BMO will show a small growth in Revenue. The Revenue will grow by 4.16% on average per year.
EPS Next Y19.37%
EPS Next 2Y16.51%
EPS Next 3Y14.34%
EPS Next 5Y9.12%
Revenue Next Year10.37%
Revenue Next 2Y6.78%
Revenue Next 3Y5.55%
Revenue Next 5Y4.16%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
BMO is valuated correctly with a Price/Earnings ratio of 15.40.
96.30% of the companies in the same industry are cheaper than BMO, based on the Price/Earnings ratio.
BMO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.08.
The Price/Forward Earnings ratio is 12.63, which indicates a correct valuation of BMO.
BMO's Price/Forward Earnings ratio is rather expensive when compared to the industry. BMO is more expensive than 92.59% of the companies in the same industry.
BMO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 12.63 |
4.2 Price Multiples
92.59% of the companies in the same industry are cheaper than BMO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 230.47 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BMO's earnings are expected to grow with 14.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)28.24
EPS Next 2Y16.51%
EPS Next 3Y14.34%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 3.97%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.79, BMO pays a bit more dividend than its industry peers.
BMO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
5.2 History
The dividend of BMO has a limited annual growth rate of 4.23%.
BMO has been paying a dividend for at least 10 years, so it has a reliable track record.
BMO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.23%
Div Incr Years3
Div Non Decr Years34
5.3 Sustainability
60.03% of the earnings are spent on dividend by BMO. This is not a sustainable payout ratio.
The dividend of BMO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.03%
EPS Next 2Y16.51%
EPS Next 3Y14.34%
TSX:BMO (8/29/2025, 7:00:00 PM)
166.19
+2.16 (+1.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners53.29%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap119.38B
Analysts67.37
Price Target163.12 (-1.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend5.29
Dividend Growth(5Y)4.23%
DP60.03%
Div Incr Years3
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.4%
Min EPS beat(2)2.34%
Max EPS beat(2)8.45%
EPS beat(4)3
Avg EPS beat(4)3.5%
Min EPS beat(4)-21.82%
Max EPS beat(4)25.04%
EPS beat(8)3
Avg EPS beat(8)-2.16%
EPS beat(12)4
Avg EPS beat(12)-3.32%
EPS beat(16)6
Avg EPS beat(16)-1.4%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)0.33%
Revenue beat(4)2
Avg Revenue beat(4)1.37%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)7.39%
Revenue beat(8)2
Avg Revenue beat(8)-1.11%
Revenue beat(12)4
Avg Revenue beat(12)0.98%
Revenue beat(16)6
Avg Revenue beat(16)3.34%
PT rev (1m)3.08%
PT rev (3m)7.67%
EPS NQ rev (1m)3.77%
EPS NQ rev (3m)-0.28%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 12.63 | ||
| P/S | 3.33 | ||
| P/FCF | 230.47 | ||
| P/OCF | 54.76 | ||
| P/B | 1.38 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.79
EY6.49%
EPS(NY)13.15
Fwd EY7.92%
FCF(TTM)0.72
FCFY0.43%
OCF(TTM)3.03
OCFY1.83%
SpS49.96
BVpS120.72
TBVpS90.77
PEG (NY)0.8
PEG (5Y)28.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 9.57% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 23.12% | ||
| GM | N/A | ||
| FCFM | 1.44% |
ROA(3y)0.65%
ROA(5y)0.65%
ROE(3y)10.78%
ROE(5y)10.79%
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-8.54%
PM growth 5Y-0.59%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 455.97 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 77.45% | ||
| Cap/Sales | 4.63% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 6.24% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC15.05%
ROIC/WACCN/A
Cap/Depr(3y)83.95%
Cap/Depr(5y)78.69%
Cap/Sales(3y)4.93%
Cap/Sales(5y)4.5%
Profit Quality(3y)205.3%
Profit Quality(5y)443.25%
High Growth Momentum
Growth
EPS 1Y (TTM)1.79%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%22.35%
EPS Next Y19.37%
EPS Next 2Y16.51%
EPS Next 3Y14.34%
EPS Next 5Y9.12%
Revenue 1Y (TTM)11.61%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%9.53%
Revenue Next Year10.37%
Revenue Next 2Y6.78%
Revenue Next 3Y5.55%
Revenue Next 5Y4.16%
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-97.67%
FCF growth 3Y-13.92%
FCF growth 5Y-0.51%
OCF growth 1Y-90.87%
OCF growth 3Y-12.98%
OCF growth 5Y-0.19%