BANK OF MONTREAL (BMO.CA) Fundamental Analysis & Valuation
TSX:BMO • CA0636711016
196.9 CAD
-2.39 (-1.2%)
Last: Mar 5, 2026, 07:00 PM
This BMO.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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. While showing a medium growth rate, BMO is valued expensive at the moment. Finally BMO also has an excellent dividend rating.
1. BMO.CA Profitability Analysis
1.1 Basic Checks
- In the past year BMO was profitable.
- In the past year BMO had a positive cash flow from operations.
- BMO had positive earnings in each of the past 5 years.
- Each year in the past 5 years BMO had a positive operating cash flow.
1.2 Ratios
- BMO has a Return On Assets of 0.59%. This is in the lower half of the industry: BMO underperforms 70.83% of its industry peers.
- BMO has a worse Return On Equity (10.05%) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 10.05% | ||
| 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 23.38% is on the low side compared to the rest of the industry. BMO is outperformed by 62.50% of its industry peers.
- In the last couple of years the Profit Margin of BMO has grown nicely.
- 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) | 23.38% | ||
| 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. BMO.CA Health Analysis
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 reduced compared to 1 year ago.
- The number of shares outstanding for BMO has been increased compared to 5 years ago.
- The debt/assets ratio for BMO is higher compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of BMO is 45.01, which is on the high side as it means it would take BMO, 45.01 years of fcf income to pay off all of its debts.
- BMO's Debt to FCF ratio of 45.01 is in line compared to the rest of the industry. BMO outperforms 50.00% of its industry peers.
- A Debt/Equity ratio of 2.82 is on the high side and indicates that BMO has dependencies on debt financing.
- BMO has a Debt to Equity ratio of 2.82. This is in the lower half of the industry: BMO underperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.82 | ||
| Debt/FCF | 45.01 | ||
| 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. BMO.CA Growth Analysis
3.1 Past
- BMO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.60%, which is quite impressive.
- Measured over the past years, BMO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.56% on average per year.
- The Revenue has been growing slightly by 7.10% in the past year.
- BMO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.57% yearly.
EPS 1Y (TTM)23.6%
EPS 3Y-2.79%
EPS 5Y9.56%
EPS Q2Q%13.16%
Revenue 1Y (TTM)7.1%
Revenue growth 3Y2.47%
Revenue growth 5Y7.57%
Sales Q2Q%4.77%
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.
- The Revenue is expected to grow by 3.72% on average over the next years.
EPS Next Y13.15%
EPS Next 2Y13.22%
EPS Next 3Y11.58%
EPS Next 5Y5.35%
Revenue Next Year5.34%
Revenue Next 2Y5.22%
Revenue Next 3Y4.53%
Revenue Next 5Y3.72%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. BMO.CA Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 15.66 indicates a correct valuation of BMO.
- Based on the Price/Earnings ratio, BMO is valued more expensive than 87.50% of the companies in the same industry.
- When comparing the Price/Earnings ratio of BMO to the average of the S&P500 Index (26.69), we can say BMO is valued slightly cheaper.
- BMO is valuated correctly with a Price/Forward Earnings ratio of 12.62.
- Based on the Price/Forward Earnings ratio, BMO is valued a bit more expensive than 75.00% of the companies in the same industry.
- BMO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
- 62.50% 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 | 25.61 | ||
| 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)1.64
EPS Next 2Y13.22%
EPS Next 3Y11.58%
5. BMO.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 3.28%, BMO has a reasonable but not impressive dividend return.
- BMO's Dividend Yield is a higher than the industry average which is at 3.22.
- BMO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
- The dividend of BMO is nicely growing with an annual growth rate of 12.66%!
- BMO has paid a dividend for at least 10 years, which is a reliable track record.
- BMO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.66%
Div Incr Years3
Div Non Decr Years34
5.3 Sustainability
- BMO pays out 58.82% of its income as dividend. This is a bit on the high side, but may be sustainable.
- BMO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.82%
EPS Next 2Y13.22%
EPS Next 3Y11.58%
BMO.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:BMO (3/5/2026, 7:00:00 PM)
196.9
-2.39 (-1.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)02-25 2026-02-25/bmo
Earnings (Next)05-26 2026-05-26
Inst Owners55.35%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap139.32B
Revenue(TTM)36.83B
Net Income(TTM)8.61B
Analysts66.32
Price Target201.52 (2.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Yearly Dividend7
Dividend Growth(5Y)12.66%
DP58.82%
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)6.73%
Min EPS beat(2)6.44%
Max EPS beat(2)7.03%
EPS beat(4)4
Avg EPS beat(4)6.07%
Min EPS beat(4)2.34%
Max EPS beat(4)8.45%
EPS beat(8)5
Avg EPS beat(8)1.84%
EPS beat(12)5
Avg EPS beat(12)-2.1%
EPS beat(16)6
Avg EPS beat(16)-1.82%
Revenue beat(2)2
Avg Revenue beat(2)2.21%
Min Revenue beat(2)1.81%
Max Revenue beat(2)2.6%
Revenue beat(4)3
Avg Revenue beat(4)0.84%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)2.6%
Revenue beat(8)4
Avg Revenue beat(8)0.89%
Revenue beat(12)5
Avg Revenue beat(12)-0.14%
Revenue beat(16)7
Avg Revenue beat(16)2.79%
PT rev (1m)6.88%
PT rev (3m)14.25%
EPS NQ rev (1m)1.23%
EPS NQ rev (3m)6.03%
EPS NY rev (1m)0%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)0.65%
Revenue NQ rev (3m)2.44%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 12.62 | ||
| P/S | 3.78 | ||
| P/FCF | 25.61 | ||
| P/OCF | 19.44 | ||
| P/B | 1.63 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | N/A |
EPS(TTM)12.57
EY6.38%
EPS(NY)15.6
Fwd EY7.92%
FCF(TTM)7.69
FCFY3.91%
OCF(TTM)10.13
OCFY5.15%
SpS52.05
BVpS121.13
TBVpS90.55
PEG (NY)1.19
PEG (5Y)1.64
Graham Number185.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 10.05% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 23.38% | ||
| GM | N/A | ||
| FCFM | 14.77% |
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-Score6
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.82 | ||
| Debt/FCF | 45.01 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 79.15% | ||
| Cap/Sales | 4.69% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 63.17% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
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)23.6%
EPS 3Y-2.79%
EPS 5Y9.56%
EPS Q2Q%13.16%
EPS Next Y13.15%
EPS Next 2Y13.22%
EPS Next 3Y11.58%
EPS Next 5Y5.35%
Revenue 1Y (TTM)7.1%
Revenue growth 3Y2.47%
Revenue growth 5Y7.57%
Sales Q2Q%4.77%
Revenue Next Year5.34%
Revenue Next 2Y5.22%
Revenue Next 3Y4.53%
Revenue Next 5Y3.72%
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 1Y34.45%
FCF growth 3Y34.36%
FCF growth 5Y-29.77%
OCF growth 1Y24.68%
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 2 / 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 15.66 and the Price/Book (PB) ratio is 1.63.
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.