BANK OF MONTREAL (BMO) Stock Fundamental Analysis
USA - NYSE:BMO - CA0636711016 - Common Stock
125.66 USD
-0.75 (-0.59%)
125.66 USD
0 (0%)
Overall BMO gets a fundamental rating of 3 out of 10. We evaluated BMO against 392 industry peers in the Banks industry. BMO has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, BMO is valued expensive at the moment.
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.
Each year in the past 5 years BMO had a positive operating cash flow.
1.2 Ratios
BMO has a Return On Assets of 0.58%. This is in the lower half of the industry: BMO underperforms 71.43% of its industry peers.
BMO's Return On Equity of 9.57% is fine compared to the rest of the industry. BMO outperforms 62.50% 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 (23.12%) which is in line with 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.
The Debt to FCF ratio of BMO (455.97) is worse than 86.73% of its industry peers.
A Debt/Equity ratio of 2.69 is on the high side and indicates that BMO has dependencies on debt financing.
BMO has a worse Debt to Equity ratio (2.69) than 92.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 455.97 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.82%
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.
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 11.61% 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)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
BMO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.12% yearly.
Based on estimates for the next years, BMO will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
EPS Next Y23.54%
EPS Next 2Y18.01%
EPS Next 3Y15.89%
EPS Next 5Y9.12%
Revenue Next Year10.89%
Revenue Next 2Y6.92%
Revenue Next 3Y5.57%
Revenue Next 5Y4.46%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.26 indicates a correct valuation of BMO.
Compared to the rest of the industry, the Price/Earnings ratio of BMO indicates a slightly more expensive valuation: BMO is more expensive than 72.19% of the companies listed in the same industry.
BMO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.99 indicates a correct valuation of BMO.
BMO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BMO is more expensive than 69.39% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.57. BMO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.26 | ||
| Fwd PE | 12.99 |
4.2 Price Multiples
BMO's Price/Free Cash Flow ratio is rather expensive when compared to the industry. BMO is more expensive than 83.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 242.43 | ||
| 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.
A more expensive valuation may be justified as BMO's earnings are expected to grow with 15.89% in the coming years.
PEG (NY)0.69
PEG (5Y)29.8
EPS Next 2Y18.01%
EPS Next 3Y15.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.59%, BMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.59, BMO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, BMO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
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.
The dividend of BMO decreased recently.
Dividend Growth(5Y)4.23%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
60.03% 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.
DP60.03%
EPS Next 2Y18.01%
EPS Next 3Y15.89%
125.66
-0.75 (-0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners53.35%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner Change0%
Market Cap90.02B
Analysts67.78
Price Target124.96 (-0.56%)
Short Float %0.92%
Short Ratio9.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
Yearly Dividend3.79
Dividend Growth(5Y)4.23%
DP60.03%
Div Incr Years1
Div Non Decr Years1
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)6.3%
PT rev (3m)8.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.48%
EPS NY rev (1m)3.5%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.26 | ||
| Fwd PE | 12.99 | ||
| P/S | 3.5 | ||
| P/FCF | 242.43 | ||
| P/OCF | 57.61 | ||
| P/B | 1.45 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.73
EY6.15%
EPS(NY)9.67
Fwd EY7.7%
FCF(TTM)0.52
FCFY0.41%
OCF(TTM)2.18
OCFY1.74%
SpS35.91
BVpS86.78
TBVpS65.24
PEG (NY)0.69
PEG (5Y)29.8
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
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-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
WACC15.82%
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 3Y15.89%
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 5Y4.46%
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%