BANK OF MONTREAL (BMO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BMO - CA0636711016 - Common Stock
170.64 CAD
+1.51 (+0.89%)
Overall BMO gets a fundamental rating of 3 out of 10. We evaluated BMO against 25 industry peers in the Banks industry. Both the profitability and financial health of BMO have multiple concerns. BMO is quite expensive at the moment. It does show a decent growth rate. Finally 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.
Each year in the past 5 years BMO has been profitable.
In the past 5 years BMO always reported a positive cash flow from operatings.
1.2 Ratios
BMO has a worse Return On Assets (0.58%) than 80.00% of its industry peers.
BMO has a Return On Equity of 9.57%. This is in the lower half of the industry: BMO underperforms 72.00% 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 Profit Margin of 23.12%. This is in the lower half of the industry: BMO underperforms 76.00% of its industry peers.
In the last couple of years the Profit Margin of BMO has remained more or less at the same level.
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.
Compared to 1 year ago, BMO has more shares outstanding
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
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 worse Debt to FCF ratio (455.97) than 96.00% of its industry peers.
BMO has a Debt/Equity ratio of 2.69. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.69, BMO is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 455.97 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.73%
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 been growing slightly by 1.79% over the past 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 11.61% in the past year. This is quite good.
The Revenue has been growing slightly by 5.17% on average over the past years.
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
The Earnings Per Share is expected to grow by 9.12% on average over the next years. This is quite good.
Based on estimates for the next years, BMO will show a small growth in Revenue. The Revenue will grow by 4.66% on average per year.
EPS Next Y23.54%
EPS Next 2Y18.01%
EPS Next 3Y15.97%
EPS Next 5Y9.12%
Revenue Next Year10.89%
Revenue Next 2Y6.92%
Revenue Next 3Y5.57%
Revenue Next 5Y4.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.81, which indicates a correct valuation of BMO.
BMO's Price/Earnings ratio is rather expensive when compared to the industry. BMO is more expensive than 92.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.65. BMO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.64 indicates a correct valuation of BMO.
80.00% of the companies in the same industry are cheaper than BMO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BMO to the average of the S&P500 Index (34.45), we can say BMO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.81 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BMO is valued more expensive than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 234.67 | ||
| 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 15.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)28.99
EPS Next 2Y18.01%
EPS Next 3Y15.97%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 3.86%.
BMO's Dividend Yield is rather good when compared to the industry average which is at 3.35. BMO pays more dividend than 84.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, BMO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
The dividend of BMO has a limited annual growth rate of 4.23%.
BMO has paid a dividend for at least 10 years, which is 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)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 2Y18.01%
EPS Next 3Y15.97%
TSX:BMO (11/21/2025, 7:00:00 PM)
170.64
+1.51 (+0.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners53.35%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap121.56B
Revenue(TTM)35.89B
Net Income(TTM)8.30B
Analysts66.67
Price Target176.38 (3.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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)1.31%
PT rev (3m)8.13%
EPS NQ rev (1m)1.51%
EPS NQ rev (3m)5.77%
EPS NY rev (1m)0%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.81 | ||
| Fwd PE | 12.64 | ||
| P/S | 3.39 | ||
| P/FCF | 234.67 | ||
| P/OCF | 55.76 | ||
| P/B | 1.4 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.79
EY6.32%
EPS(NY)13.5
Fwd EY7.91%
FCF(TTM)0.73
FCFY0.43%
OCF(TTM)3.06
OCFY1.79%
SpS50.38
BVpS121.74
TBVpS91.53
PEG (NY)0.67
PEG (5Y)28.99
Graham Number171.92
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
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-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
WACC14.73%
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 Y23.54%
EPS Next 2Y18.01%
EPS Next 3Y15.97%
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 3Y5.57%
Revenue Next 5Y4.66%
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%
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 2 / 10.
How financially healthy is BANK OF MONTREAL?
The financial health rating of BANK OF MONTREAL (BMO.CA) is 0 / 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 60.03%.