BANK OF MONTREAL (BMO)
CA0636711016 - Common Stock
Taking everything into account, BMO scores 3 out of 10 in our fundamental rating. BMO was compared to 411 industry peers in the Banks industry. BMO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. BMO has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years BMO has always been profitable.
In the past 5 years BMO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.38%, BMO is doing worse than 83.45% of the companies in the same industry.
The Return On Equity of BMO (6.57%) is worse than 71.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 6.57% | ||
| ROIC | N/A |
ROA(3y)0.74%
ROA(5y)0.68%
ROE(3y)12.36%
ROE(5y)11.3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BMO has a Profit Margin of 15.66%. This is in the lower half of the industry: BMO underperforms 78.10% of its industry peers.
BMO's Profit Margin has declined 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) | 15.66% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-12.43%
PM growth 5Y-10.88%
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 a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of BMO is 29.77, which is on the high side as it means it would take BMO, 29.77 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 29.77, BMO is not doing good in the industry: 86.13% of the companies in the same industry are doing better.
BMO has a Debt/Equity ratio of 2.33. This is a high value indicating a heavy dependency on external financing.
BMO's Debt to Equity ratio of 2.33 is on the low side compared to the rest of the industry. BMO is outperformed by 92.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 29.77 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.67%
2.3 Liquidity
BMO has a Current Ratio of 2.13. This indicates that BMO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BMO (2.13) is better than 99.76% of its industry peers.
BMO has a Quick Ratio of 2.13. This indicates that BMO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.13, BMO belongs to the top of the industry, outperforming 99.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
The earnings per share for BMO have decreased strongly by -11.92% in the last year.
Measured over the past 5 years, BMO shows a small growth in Earnings Per Share. The EPS has been growing by 5.46% on average per year.
Looking at the last year, BMO shows a decrease in Revenue. The Revenue has decreased by -0.14% in the last year.
BMO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.38% yearly.
EPS 1Y (TTM)-11.92%
EPS 3Y15.05%
EPS 5Y5.46%
EPS growth Q2Q-20.5%
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y7.4%
Revenue growth 5Y6.38%
Revenue growth Q2Q18.72%
3.2 Future
The Earnings Per Share is expected to grow by 5.21% on average over the next years.
BMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.67% yearly.
EPS Next Y-2.3%
EPS Next 2Y3.64%
EPS Next 3Y5.21%
EPS Next 5YN/A
Revenue Next Year3.2%
Revenue Next 2Y4.3%
Revenue Next 3Y5.99%
Revenue Next 5Y3.67%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
BMO is valuated reasonably with a Price/Earnings ratio of 11.48.
63.99% of the companies in the same industry are cheaper than BMO, based on the Price/Earnings ratio.
BMO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.25.
A Price/Forward Earnings ratio of 10.08 indicates a reasonable valuation of BMO.
60.34% of the companies in the same industry are more expensive than BMO, based on the Price/Forward Earnings ratio.
BMO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
BMO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BMO is more expensive than 72.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.1
EPS Next 2Y3.64%
EPS Next 3Y5.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.82%, BMO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.89, BMO pays a bit more dividend than its industry peers.
BMO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
5.2 History
The dividend of BMO decreases each year by -0.73%.
BMO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.73%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
54.72% of the earnings are spent on dividend by BMO. This is a bit on the high side, but may be sustainable.
DP54.72%
EPS Next 2Y3.64%
EPS Next 3Y5.21%
BANK OF MONTREAL
NYSE:BMO (4/24/2024, 7:04:00 PM)
After market: 92.38 -0.46 (-0.5%)92.84
-0.98 (-1.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap67.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 10.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 6.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 15.66% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.13 | ||
| Quick Ratio | 2.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-11.92%
EPS 3Y15.05%
EPS 5Y
EPS growth Q2Q
EPS Next Y-2.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y7.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y