BANK OF MONTREAL (BMO.CA) Stock Fundamental Analysis
TSX:BMO - Toronto Stock Exchange - CA0636711016 - Common Stock - Currency: CAD
Overall BMO gets a fundamental rating of 3 out of 10. We evaluated BMO against 29 industry peers in the Banks industry. BMO has a bad profitability rating. Also its financial health evaluation is rather negative. BMO has a decent growth rate and is not valued too expensively. BMO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BMO was profitable.
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
With a Return On Assets value of 0.55%, BMO is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
With a Return On Equity value of 9.15%, BMO is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
| 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 worse Profit Margin (22.37%) than 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.
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 34.71. This is a negative value and a sign of low solvency as BMO would need 34.71 years to pay back of all of its debts.
With a Debt to FCF ratio value of 34.71, BMO is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.67 is on the high side and indicates that BMO has dependencies on debt financing.
BMO's Debt to Equity ratio of 2.67 is on the low side compared to the rest of the industry. BMO is outperformed by 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 34.71 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.16%
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.
Looking at the last year, BMO shows a quite strong growth in Revenue. The Revenue has grown by 9.61% 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)-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.
Based on estimates for the next years, BMO will show a small growth in Revenue. The Revenue will grow by 4.06% on average per year.
EPS Next Y19.5%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
EPS Next 5Y9.12%
Revenue Next Year10.9%
Revenue Next 2Y7.16%
Revenue Next 3Y5.61%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.26, the valuation of BMO can be described as correct.
BMO's Price/Earnings ratio is rather expensive when compared to the industry. BMO is more expensive than 96.55% of the companies in the same industry.
BMO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.70, which indicates a very decent valuation of BMO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMO indicates a rather expensive valuation: BMO more expensive than 89.66% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. BMO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 11.7 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BMO is valued more expensive than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.63 | ||
| 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 14.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)27.98
EPS Next 2Y17.2%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.16%, BMO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.64, BMO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, BMO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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 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
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 (7/11/2025, 7:00:00 PM)
155.66
-0.95 (-0.61%)
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 Cap112.11B
Analysts67.37
Price Target157.44 (1.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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)1.51%
PT rev (3m)0.36%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 11.7 | ||
| P/S | 3.19 | ||
| P/FCF | 16.63 | ||
| P/OCF | 13.33 | ||
| P/B | 1.31 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.2
EY6.55%
EPS(NY)13.31
Fwd EY8.55%
FCF(TTM)9.36
FCFY6.01%
OCF(TTM)11.68
OCFY7.5%
SpS48.73
BVpS119.12
TBVpS89.33
PEG (NY)0.78
PEG (5Y)27.98
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
WACC15.16%
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 Year10.9%
Revenue Next 2Y7.16%
Revenue Next 3Y5.61%
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%