BANK OF MONTREAL (BMO.CA) Stock Fundamental Analysis
TSX:BMO - Toronto Stock Exchange - CA0636711016 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to BMO. BMO was compared to 30 industry peers in the Banks industry. Both the profitability and financial health of BMO have multiple concerns. BMO is not valued too expensively and it also shows a decent growth rate. BMO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BMO had positive earnings in the past year.
In the past year BMO had a positive cash flow from operations.
BMO had positive earnings in each of the past 5 years.
In the past 5 years BMO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.53%, BMO is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Return On Equity of BMO (8.85%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 8.85% | ||
| 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 Profit Margin of 22.54%. This is in the lower half of the industry: BMO underperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of BMO has remained more or less at the same level.
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) | 22.54% | ||
| 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.
BMO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BMO has more shares outstanding
The debt/assets ratio for BMO has remained at the same level compared to a year ago.
2.2 Solvency
BMO has a debt to FCF ratio of 15.82. This is a negative value and a sign of low solvency as BMO would need 15.82 years to pay back of all of its debts.
With a Debt to FCF ratio value of 15.82, BMO is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
BMO has a Debt/Equity ratio of 2.47. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.47, BMO perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | 15.82 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.14%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for BMO have decreased by -5.74% in the last year.
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 12.09% in the past year. This is quite good.
BMO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.17% yearly.
EPS 1Y (TTM)-5.74%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%-1.78%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%5.67%
3.2 Future
BMO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.12% yearly.
BMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.81% yearly.
EPS Next Y19.5%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
EPS Next 5Y9.12%
Revenue Next Year10.9%
Revenue Next 2Y7.16%
Revenue Next 3Y5.61%
Revenue Next 5Y3.81%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.56, BMO is valued correctly.
Based on the Price/Earnings ratio, BMO is valued expensively inside the industry as 96.67% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of BMO to the average of the S&P500 Index (26.25), we can say BMO is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.07 indicates a reasonable valuation of BMO.
BMO's Price/Forward Earnings ratio is rather expensive when compared to the industry. BMO is more expensive than 90.00% of the companies in the same industry.
BMO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 11.07 |
4.2 Price Multiples
83.33% 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 | 7.6 | ||
| 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.
A more expensive valuation may be justified as BMO's earnings are expected to grow with 14.33% in the coming years.
PEG (NY)0.75
PEG (5Y)26.7
EPS Next 2Y17.2%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 4.44%, which is a nice return.
Compared to an average industry Dividend Yield of 4.19, BMO has a dividend in line with its industry peers.
BMO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
5.2 History
The dividend of BMO has a limited annual growth rate of 4.22%.
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)4.22%
Div Incr Years3
Div Non Decr Years34
5.3 Sustainability
56.48% of the earnings are spent on dividend by BMO. This is a bit on the high side, but may be sustainable.
The dividend of BMO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP56.48%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
TSX:BMO (5/30/2025, 7:00:00 PM)
147.37
-0.42 (-0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.83%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap106.70B
Analysts69.47
Price Target151.5 (2.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Yearly Dividend5.29
Dividend Growth(5Y)4.22%
DP56.48%
Div Incr Years3
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.61%
Min EPS beat(2)-21.82%
Max EPS beat(2)25.04%
EPS beat(4)1
Avg EPS beat(4)-2.38%
Min EPS beat(4)-21.82%
Max EPS beat(4)25.04%
EPS beat(8)1
Avg EPS beat(8)-6.18%
EPS beat(12)2
Avg EPS beat(12)-4.45%
EPS beat(16)6
Avg EPS beat(16)-0.33%
Revenue beat(2)1
Avg Revenue beat(2)3.25%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)7.39%
Revenue beat(4)1
Avg Revenue beat(4)0.94%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)7.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.63%
Revenue beat(12)4
Avg Revenue beat(12)4.87%
Revenue beat(16)6
Avg Revenue beat(16)5.61%
PT rev (1m)-3.42%
PT rev (3m)1.69%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)0%
EPS NY rev (3m)5.58%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)3.08%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)3.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 11.07 | ||
| P/S | 3.1 | ||
| P/FCF | 7.6 | ||
| P/OCF | 6.84 | ||
| P/B | 1.22 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.12
EY6.87%
EPS(NY)13.31
Fwd EY9.03%
FCF(TTM)19.38
FCFY13.15%
OCF(TTM)21.54
OCFY14.61%
SpS47.49
BVpS120.93
TBVpS89.87
PEG (NY)0.75
PEG (5Y)26.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 8.85% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.54% | ||
| GM | N/A | ||
| FCFM | 40.81% |
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 Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | 15.82 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 73.39% | ||
| Cap/Sales | 4.53% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 181.07% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC15.14%
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)-5.74%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%-1.78%
EPS Next Y19.5%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
EPS Next 5Y9.12%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%5.67%
Revenue Next Year10.9%
Revenue Next 2Y7.16%
Revenue Next 3Y5.61%
Revenue Next 5Y3.81%
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-69.98%
FCF growth 3Y-13.92%
FCF growth 5Y-0.51%
OCF growth 1Y-67.71%
OCF growth 3Y-12.98%
OCF growth 5Y-0.19%