BANK OF MONTREAL (BMO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BMO - CA0636711016 - Common Stock
125.43 USD
+1.62 (+1.31%)
125.43 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to BMO. BMO was compared to 387 industry peers in the Banks industry. Both the profitability and financial health of BMO have multiple concerns. BMO is quite expensive at the moment. It does show a decent growth rate.
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.
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
With a Return On Assets value of 0.58%, BMO is not doing good in the industry: 74.16% of the companies in the same industry are doing better.
BMO's Return On Equity of 9.57% is in line compared to the rest of the industry. BMO outperforms 58.91% 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
The Profit Margin of BMO (23.12%) is comparable to the rest of the industry.
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.
The number of shares outstanding for BMO has been increased compared to 1 year ago.
Compared to 5 years ago, BMO has more shares outstanding
BMO has about the same debt/assets ratio as last year.
2.2 Solvency
The Debt to FCF ratio of BMO is 455.97, which is on the high side as it means it would take BMO, 455.97 years of fcf income to pay off all of its debts.
BMO's Debt to FCF ratio of 455.97 is on the low side compared to the rest of the industry. BMO is outperformed by 86.82% 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.
Looking at the Debt to Equity ratio, with a value of 2.69, BMO is doing worse than 92.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 455.97 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.66%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
BMO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.79%.
BMO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.55% yearly.
The Revenue has grown by 11.61% in the past year. This is quite good.
Measured over the past years, BMO shows a small growth in Revenue. The Revenue has been growing by 5.17% on average per year.
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 4.60% on average per year.
EPS Next Y23.54%
EPS Next 2Y18.01%
EPS Next 3Y15.97%
EPS Next 5Y9.12%
Revenue Next Year10.89%
Revenue Next 2Y6.92%
Revenue Next 3Y5.57%
Revenue Next 5Y4.6%
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 16.33 indicates a correct valuation of BMO.
Based on the Price/Earnings ratio, BMO is valued a bit more expensive than the industry average as 73.90% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of BMO to the average of the S&P500 Index (26.15), we can say BMO is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.05 indicates a correct valuation of BMO.
Based on the Price/Forward Earnings ratio, BMO is valued a bit more expensive than the industry average as 69.77% of the companies are valued more cheaply.
BMO is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 13.05 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BMO is valued expensively inside the industry as 83.72% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 243.12 | ||
| 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.
BMO's earnings are expected to grow with 15.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)29.94
EPS Next 2Y18.01%
EPS Next 3Y15.97%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 3.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.33, 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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.
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.
The dividend of BMO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.03%
EPS Next 2Y18.01%
EPS Next 3Y15.97%
125.43
+1.62 (+1.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners53.35%
Inst Owner Change5.64%
Ins Owners0.04%
Ins Owner Change0%
Market Cap89.66B
Revenue(TTM)35.89B
Net Income(TTM)8.30B
Analysts66.67
Price Target125.71 (0.22%)
Short Float %0.82%
Short Ratio8.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend3.76
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)0.6%
PT rev (3m)6.94%
EPS NQ rev (1m)1.32%
EPS NQ rev (3m)5.58%
EPS NY rev (1m)0%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 13.05 | ||
| P/S | 3.51 | ||
| P/FCF | 243.12 | ||
| P/OCF | 57.77 | ||
| P/B | 1.45 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.68
EY6.12%
EPS(NY)9.61
Fwd EY7.66%
FCF(TTM)0.52
FCFY0.41%
OCF(TTM)2.17
OCFY1.73%
SpS35.75
BVpS86.37
TBVpS64.94
PEG (NY)0.69
PEG (5Y)29.94
Graham Number122.17
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
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-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
WACC15.66%
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 3Y15.97%
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 5Y4.6%
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%
BANK OF MONTREAL / BMO FAQ
What is the ChartMill fundamental rating of BANK OF MONTREAL (BMO) stock?
ChartMill assigns a fundamental rating of 3 / 10 to BMO.
What is the valuation status of BANK OF MONTREAL (BMO) stock?
ChartMill assigns a valuation rating of 3 / 10 to BANK OF MONTREAL (BMO). This can be considered as Overvalued.
What is the profitability of BMO stock?
BANK OF MONTREAL (BMO) has a profitability rating of 3 / 10.
How financially healthy is BANK OF MONTREAL?
The financial health rating of BANK OF MONTREAL (BMO) is 0 / 10.
Is the dividend of BANK OF MONTREAL sustainable?
The dividend rating of BANK OF MONTREAL (BMO) is 5 / 10 and the dividend payout ratio is 60.03%.