BANK OF MONTREAL (BMO) Stock Fundamental Analysis
NYSE:BMO - New York Stock Exchange, Inc. - CA0636711016 - Common Stock - Currency: USD
Overall BMO gets a fundamental rating of 3 out of 10. We evaluated BMO against 395 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. Finally BMO also has an excellent dividend rating.
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.
In the past 5 years BMO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.53%, BMO is not doing good in the industry: 73.92% of the companies in the same industry are doing better.
BMO has a Return On Equity of 8.85%. This is comparable to the rest of the industry: BMO outperforms 54.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 8.85% | ||
| 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
The Profit Margin of BMO (22.54%) is comparable to the rest of the industry.
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) | 22.54% | ||
| 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.
BMO has about the same debt/assets ratio as last year.
2.2 Solvency
BMO has a debt to FCF ratio of 15.82. This is a negative value and a sign of low solvency as BMO would need 15.82 years to pay back of all of its debts.
BMO has a worse Debt to FCF ratio (15.82) than 81.77% of its industry peers.
BMO has a Debt/Equity ratio of 2.47. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.47, BMO is doing worse than 91.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | 15.82 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.15%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
BMO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.74%.
Measured over the past 5 years, BMO shows a small growth in Earnings Per Share. The EPS has been growing by 0.55% on average per year.
Looking at the last year, BMO shows a quite strong growth in Revenue. The Revenue has grown by 12.09% in the last year.
The Revenue has been growing slightly by 5.17% on average over the past years.
EPS 1Y (TTM)-5.74%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%-1.78%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%5.67%
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 3.81% 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 5Y3.81%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.60, which indicates a correct valuation of BMO.
BMO's Price/Earnings ratio is a bit more expensive when compared to the industry. BMO is more expensive than 68.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of BMO to the average of the S&P500 Index (26.17), we can say BMO is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.10 indicates a reasonable valuation of BMO.
BMO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BMO is more expensive than 64.30% 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 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 11.1 |
4.2 Price Multiples
81.27% of the companies in the same industry are more expensive than BMO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.62 | ||
| 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 14.33% in the coming years.
PEG (NY)0.75
PEG (5Y)26.77
EPS Next 2Y17.2%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 4.39%, which is a nice return.
Compared to an average industry Dividend Yield of 3.45, BMO pays a better dividend. On top of this BMO pays more dividend than 80.76% of the companies listed in the same industry.
BMO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
5.2 History
The dividend of BMO has a limited annual growth rate of 4.22%.
BMO has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of BMO decreased recently.
Dividend Growth(5Y)4.22%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
56.48% of the earnings are spent on dividend by BMO. This is a bit on the high side, but may be sustainable.
BMO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP56.48%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
NYSE:BMO (5/29/2025, 2:50:03 PM)
106.88
+0.59 (+0.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.83%
Inst Owner Change-1.94%
Ins Owners0.03%
Ins Owner Change0%
Market Cap77.39B
Analysts69.47
Price Target109.7 (2.64%)
Short Float %1.58%
Short Ratio15.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Yearly Dividend3.83
Dividend Growth(5Y)4.22%
DP56.48%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.61%
Min EPS beat(2)-21.82%
Max EPS beat(2)25.04%
EPS beat(4)1
Avg EPS beat(4)-2.38%
Min EPS beat(4)-21.82%
Max EPS beat(4)25.04%
EPS beat(8)1
Avg EPS beat(8)-6.18%
EPS beat(12)2
Avg EPS beat(12)-4.45%
EPS beat(16)6
Avg EPS beat(16)-0.33%
Revenue beat(2)1
Avg Revenue beat(2)3.25%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)7.39%
Revenue beat(4)1
Avg Revenue beat(4)0.94%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)7.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.63%
Revenue beat(12)4
Avg Revenue beat(12)4.87%
Revenue beat(16)6
Avg Revenue beat(16)5.61%
PT rev (1m)0.61%
PT rev (3m)6.95%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)0%
EPS NY rev (3m)5.58%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)3.08%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)3.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 11.1 | ||
| P/S | 3.11 | ||
| P/FCF | 7.62 | ||
| P/OCF | 6.86 | ||
| P/B | 1.22 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.32
EY6.85%
EPS(NY)9.63
Fwd EY9.01%
FCF(TTM)14.02
FCFY13.12%
OCF(TTM)15.57
OCFY14.57%
SpS34.35
BVpS87.45
TBVpS64.99
PEG (NY)0.75
PEG (5Y)26.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 8.85% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.54% | ||
| GM | N/A | ||
| FCFM | 40.81% |
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 Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | 15.82 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 73.39% | ||
| Cap/Sales | 4.53% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 181.07% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC15.15%
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)-5.74%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%-1.78%
EPS Next Y19.5%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
EPS Next 5Y9.12%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%5.67%
Revenue Next Year10.9%
Revenue Next 2Y7.16%
Revenue Next 3Y5.61%
Revenue Next 5Y3.81%
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-69.98%
FCF growth 3Y-13.92%
FCF growth 5Y-0.51%
OCF growth 1Y-67.71%
OCF growth 3Y-12.98%
OCF growth 5Y-0.19%