BANK OF MONTREAL (BMO.CA) Stock Fundamental Analysis
Canada - TSX:BMO - CA0636711016 - Common Stock
179.14 CAD
-0.73 (-0.41%)
We assign a fundamental rating of 2 out of 10 to BMO. BMO was compared to 26 industry peers in the Banks industry. BMO has a bad profitability rating. Also its financial health evaluation is rather negative. BMO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BMO had positive earnings in the past year.
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
BMO has a worse Return On Assets (0.58%) than 80.77% of its industry peers.
BMO has a worse Return On Equity (9.57%) than 73.08% of its industry peers.
| 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 76.92% of its industry peers.
BMO's Profit Margin has been stable 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) | 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.
BMO has more shares outstanding than it did 5 years ago.
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 455.97. This is a negative value and a sign of low solvency as BMO would need 455.97 years to pay back of all of its debts.
BMO has a Debt to FCF ratio of 455.97. This is amonst the worse of the industry: BMO underperforms 96.15% of its industry peers.
A Debt/Equity ratio of 2.69 is on the high side and indicates that BMO has dependencies on debt financing.
BMO has a Debt to Equity ratio of 2.69. This is in the lower half of the industry: BMO underperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 455.97 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.93%
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.
Looking at the last year, BMO shows a quite strong growth in Revenue. The Revenue has grown by 11.61% in the last year.
BMO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.17% yearly.
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.
The Revenue is expected to grow by 4.08% on average over the next years.
EPS Next Y19.37%
EPS Next 2Y16.51%
EPS Next 3Y14.34%
EPS Next 5Y9.12%
Revenue Next Year10.89%
Revenue Next 2Y6.92%
Revenue Next 3Y5.59%
Revenue Next 5Y4.08%
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 16.60, BMO is valued correctly.
Based on the Price/Earnings ratio, BMO is valued more expensive than 92.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of BMO to the average of the S&P500 Index (27.41), we can say BMO is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.62, BMO is valued correctly.
Based on the Price/Forward Earnings ratio, BMO is valued more expensive than 92.31% of the companies in the same industry.
BMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.6 | ||
| Fwd PE | 13.62 |
4.2 Price Multiples
BMO's Price/Free Cash Flow ratio is rather expensive when compared to the industry. BMO is more expensive than 96.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 247.74 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BMO's 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 14.34% in the coming years.
PEG (NY)0.86
PEG (5Y)30.44
EPS Next 2Y16.51%
EPS Next 3Y14.34%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 3.65%.
Compared to an average industry Dividend Yield of 4.04, BMO is paying slightly less dividend.
BMO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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
BMO pays out 60.03% of its income as dividend. 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 (9/22/2025, 7:00:00 PM)
179.14
-0.73 (-0.41%)
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 Cap128.33B
Analysts66.67
Price Target174.11 (-2.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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)10.02%
PT rev (3m)12.25%
EPS NQ rev (1m)4.2%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.6 | ||
| Fwd PE | 13.62 | ||
| P/S | 3.58 | ||
| P/FCF | 247.74 | ||
| P/OCF | 58.87 | ||
| P/B | 1.48 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.79
EY6.02%
EPS(NY)13.15
Fwd EY7.34%
FCF(TTM)0.72
FCFY0.4%
OCF(TTM)3.04
OCFY1.7%
SpS50.1
BVpS121.06
TBVpS91.02
PEG (NY)0.86
PEG (5Y)30.44
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
WACC14.93%
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 Year10.89%
Revenue Next 2Y6.92%
Revenue Next 3Y5.59%
Revenue Next 5Y4.08%
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%