BANK OF MONTREAL (BMO.CA) Stock Fundamental Analysis
TSX:BMO - Toronto Stock Exchange - CA0636711016 - Common Stock - Currency: CAD
BMO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 29 industry peers in the Banks industry. BMO may be in some trouble as it scores bad on both profitability and health. 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
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.
Each year in the past 5 years BMO had a positive operating cash flow.
1.2 Ratios
BMO has a worse Return On Assets (0.55%) than 86.21% of its industry peers.
BMO has a Return On Equity of 9.15%. This is in the lower half of the industry: BMO underperforms 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 9.15% | ||
| 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 22.37%. This is amonst the worse of the industry: BMO underperforms 86.21% 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) | 22.37% | ||
| 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.
BMO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BMO has about the same debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of BMO is 34.71, which is on the high side as it means it would take BMO, 34.71 years of fcf income to pay off all of its debts.
BMO has a worse Debt to FCF ratio (34.71) than 86.21% of its industry peers.
BMO has a Debt/Equity ratio of 2.67. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.67, BMO is doing worse than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 34.71 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.69%
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 -5.03% in the last year.
The Earnings Per Share has been growing slightly by 0.55% on average over the past years.
BMO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.61%.
The Revenue has been growing slightly by 5.17% on average over the past years.
EPS 1Y (TTM)-5.03%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%1.16%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%8.65%
3.2 Future
The Earnings Per Share is expected to grow by 9.12% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.06% on average over the next years.
EPS Next Y19.5%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
EPS Next 5Y9.12%
Revenue Next Year10.49%
Revenue Next 2Y6.75%
Revenue Next 3Y5.86%
Revenue Next 5Y4.06%
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
A Price/Earnings ratio of 14.99 indicates a correct valuation of BMO.
96.55% 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 26.82.
A Price/Forward Earnings ratio of 11.49 indicates a reasonable valuation of BMO.
89.66% of the companies in the same industry are cheaper than BMO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.21. BMO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 11.49 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BMO is valued expensively inside the industry as 86.21% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.29 | ||
| 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.
BMO's earnings are expected to grow with 14.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)27.49
EPS Next 2Y17.2%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 4.26%, which is a nice return.
Compared to an average industry Dividend Yield of 4.60, BMO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, BMO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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
62.84% of the earnings are spent on dividend by BMO. This is not a sustainable payout ratio.
BMO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.84%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
TSX:BMO (8/1/2025, 7:00:00 PM)
152.92
-0.02 (-0.01%)
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 Cap109.85B
Analysts67.37
Price Target158.25 (3.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend5.29
Dividend Growth(5Y)4.23%
DP62.84%
Div Incr Years3
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.69%
Min EPS beat(2)2.34%
Max EPS beat(2)25.04%
EPS beat(4)2
Avg EPS beat(4)0.05%
Min EPS beat(4)-21.82%
Max EPS beat(4)25.04%
EPS beat(8)2
Avg EPS beat(8)-4.74%
EPS beat(12)3
Avg EPS beat(12)-4.23%
EPS beat(16)6
Avg EPS beat(16)-0.93%
Revenue beat(2)1
Avg Revenue beat(2)3.01%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)7.39%
Revenue beat(4)1
Avg Revenue beat(4)1.02%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)7.39%
Revenue beat(8)1
Avg Revenue beat(8)-1.25%
Revenue beat(12)3
Avg Revenue beat(12)-0.03%
Revenue beat(16)6
Avg Revenue beat(16)4.49%
PT rev (1m)0.51%
PT rev (3m)3.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 11.49 | ||
| P/S | 3.13 | ||
| P/FCF | 16.29 | ||
| P/OCF | 13.06 | ||
| P/B | 1.28 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.2
EY6.67%
EPS(NY)13.31
Fwd EY8.7%
FCF(TTM)9.39
FCFY6.14%
OCF(TTM)11.71
OCFY7.66%
SpS48.85
BVpS119.43
TBVpS89.57
PEG (NY)0.77
PEG (5Y)27.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 9.15% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.37% | ||
| GM | N/A | ||
| FCFM | 19.21% |
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-Score8
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 34.71 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 77.93% | ||
| Cap/Sales | 4.76% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 85.89% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC14.69%
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)-5.03%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%1.16%
EPS Next Y19.5%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
EPS Next 5Y9.12%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%8.65%
Revenue Next Year10.49%
Revenue Next 2Y6.75%
Revenue Next 3Y5.86%
Revenue Next 5Y4.06%
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-29.95%
FCF growth 3Y-13.92%
FCF growth 5Y-0.51%
OCF growth 1Y-25.2%
OCF growth 3Y-12.98%
OCF growth 5Y-0.19%