BANK OF MONTREAL (BMO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BMO - CA0636711016 - Common Stock
189.81 CAD
+2.37 (+1.26%)
Taking everything into account, BMO scores 3 out of 10 in our fundamental rating. BMO was compared to 24 industry peers in the Banks industry. BMO may be in some trouble as it scores bad on both profitability and health. BMO is valied quite expensively at the moment, while it does show a decent growth rate.
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 has a worse Return On Assets (0.56%) than 70.83% of its industry peers.
- Looking at the Return On Equity, with a value of 9.40%, BMO is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 9.4% | ||
| ROIC | N/A |
ROA(3y)0.45%
ROA(5y)0.66%
ROE(3y)7.67%
ROE(5y)10.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- BMO's Profit Margin of 22.81% is on the low side compared to the rest of the industry. BMO is outperformed by 66.67% of its industry peers.
- In the last couple of years the Profit Margin of BMO has grown nicely.
- 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) | 22.81% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-16.71%
PM growth 5Y3.44%
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 less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, BMO has more shares outstanding
- BMO has a worse debt/assets ratio than last year.
2.2 Solvency
- BMO has a debt to FCF ratio of 29.36. This is a negative value and a sign of low solvency as BMO would need 29.36 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 29.36, BMO is in line with its industry, outperforming 45.83% of the companies in the same industry.
- A Debt/Equity ratio of 2.79 is on the high side and indicates that BMO has dependencies on debt financing.
- The Debt to Equity ratio of BMO (2.79) is worse than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 29.36 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.1%
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 grown by an impressive 25.59% over the past year.
- BMO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.56% yearly.
- BMO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.61%.
- Measured over the past years, BMO shows a small growth in Revenue. The Revenue has been growing by 7.57% on average per year.
EPS 1Y (TTM)25.59%
EPS 3Y-2.79%
EPS 5Y9.56%
EPS Q2Q%72.63%
Revenue 1Y (TTM)10.61%
Revenue growth 3Y2.47%
Revenue growth 5Y7.57%
Sales Q2Q%11.63%
3.2 Future
- BMO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.35% yearly.
- Based on estimates for the next years, BMO will show a small growth in Revenue. The Revenue will grow by 3.91% on average per year.
EPS Next Y13.15%
EPS Next 2Y13.22%
EPS Next 3Y11.58%
EPS Next 5Y5.35%
Revenue Next Year5.06%
Revenue Next 2Y5.01%
Revenue Next 3Y4.53%
Revenue Next 5Y3.91%
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 decreasing.
- 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
- Based on the Price/Earnings ratio of 15.60, the valuation of BMO can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of BMO indicates a rather expensive valuation: BMO more expensive than 83.33% of the companies listed in the same industry.
- BMO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- A Price/Forward Earnings ratio of 13.78 indicates a correct valuation of BMO.
- 87.50% 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 24.29. BMO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 13.78 |
4.2 Price Multiples
- BMO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.87 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- BMO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.19
PEG (5Y)1.63
EPS Next 2Y13.22%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
- BMO has a Yearly Dividend Yield of 3.56%.
- BMO's Dividend Yield is a higher than the industry average which is at 3.33.
- Compared to an average S&P500 Dividend Yield of 1.85, BMO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
- On average, the dividend of BMO grows each year by 12.66%, which is quite nice.
- BMO has been paying a dividend for at least 10 years, so it has 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)12.66%
Div Incr Years3
Div Non Decr Years34
5.3 Sustainability
- 60.81% of the earnings are spent on dividend by BMO. This is not a sustainable payout ratio.
- BMO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.81%
EPS Next 2Y13.22%
EPS Next 3Y11.58%
TSX:BMO (1/16/2026, 7:00:00 PM)
189.81
+2.37 (+1.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)12-04 2025-12-04/bmo
Earnings (Next)02-23 2026-02-23
Inst Owners55.35%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap135.07B
Revenue(TTM)36.27B
Net Income(TTM)8.27B
Analysts65.26
Price Target188.55 (-0.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend7
Dividend Growth(5Y)12.66%
DP60.81%
Div Incr Years3
Div Non Decr Years34
Ex-Date01-30 2026-01-30 (1.67)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.74%
Min EPS beat(2)7.03%
Max EPS beat(2)8.45%
EPS beat(4)4
Avg EPS beat(4)10.72%
Min EPS beat(4)2.34%
Max EPS beat(4)25.04%
EPS beat(8)4
Avg EPS beat(8)-0.97%
EPS beat(12)5
Avg EPS beat(12)-2.57%
EPS beat(16)6
Avg EPS beat(16)-1.13%
Revenue beat(2)2
Avg Revenue beat(2)1.47%
Min Revenue beat(2)0.33%
Max Revenue beat(2)2.6%
Revenue beat(4)3
Avg Revenue beat(4)2.24%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)7.39%
Revenue beat(8)3
Avg Revenue beat(8)-0.25%
Revenue beat(12)4
Avg Revenue beat(12)-2.85%
Revenue beat(16)7
Avg Revenue beat(16)3.65%
PT rev (1m)2.21%
PT rev (3m)8.3%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)1.07%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)1.82%
Revenue NY rev (3m)1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 13.78 | ||
| P/S | 3.72 | ||
| P/FCF | 15.87 | ||
| P/OCF | 13.19 | ||
| P/B | 1.53 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)12.17
EY6.41%
EPS(NY)13.77
Fwd EY7.25%
FCF(TTM)11.96
FCFY6.3%
OCF(TTM)14.39
OCFY7.58%
SpS50.97
BVpS123.73
TBVpS93.44
PEG (NY)1.19
PEG (5Y)1.63
Graham Number184.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 9.4% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.81% | ||
| GM | N/A | ||
| FCFM | 23.46% |
ROA(3y)0.45%
ROA(5y)0.66%
ROE(3y)7.67%
ROE(5y)10.96%
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-16.71%
PM growth 5Y3.44%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 29.36 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 79.31% | ||
| Cap/Sales | 4.77% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 102.88% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC13.1%
ROIC/WACCN/A
Cap/Depr(3y)77.78%
Cap/Depr(5y)80.03%
Cap/Sales(3y)5.09%
Cap/Sales(5y)4.64%
Profit Quality(3y)219.61%
Profit Quality(5y)251.73%
High Growth Momentum
Growth
EPS 1Y (TTM)25.59%
EPS 3Y-2.79%
EPS 5Y9.56%
EPS Q2Q%72.63%
EPS Next Y13.15%
EPS Next 2Y13.22%
EPS Next 3Y11.58%
EPS Next 5Y5.35%
Revenue 1Y (TTM)10.61%
Revenue growth 3Y2.47%
Revenue growth 5Y7.57%
Sales Q2Q%11.63%
Revenue Next Year5.06%
Revenue Next 2Y5.01%
Revenue Next 3Y4.53%
Revenue Next 5Y3.91%
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-66.14%
FCF growth 3Y34.36%
FCF growth 5Y-29.77%
OCF growth 1Y-61.65%
OCF growth 3Y27.36%
OCF growth 5Y-27.42%
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 for BMO 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 3 / 10.
Can you provide the PE and PB ratios for BMO stock?
The Price/Earnings (PE) ratio for BANK OF MONTREAL (BMO.CA) is 15.6 and the Price/Book (PB) ratio is 1.53.
What is the financial health of BANK OF MONTREAL (BMO.CA) stock?
The financial health rating of BANK OF MONTREAL (BMO.CA) is 1 / 10.