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 is not valued too expensively and it also shows a decent growth rate. Finally 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.
In the past 5 years BMO has always been profitable.
BMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BMO has a Return On Assets of 0.53%. This is in the lower half of the industry: BMO underperforms 73.92% of its industry peers.
BMO's Return On Equity of 8.85% is in line compared 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
BMO has a Profit Margin (22.54%) which is in line with its industry peers.
BMO's Profit Margin has been stable in the last couple of years.
BMO does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| 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.
The number of shares outstanding for BMO has been increased compared to 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 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.
With a Debt to FCF ratio value of 15.82, BMO is not doing good in the industry: 81.77% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.47 is on the high side and indicates that BMO has dependencies on debt financing.
BMO has a Debt to Equity ratio of 2.47. This is amonst the worse of the industry: BMO underperforms 91.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | 15.82 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.2%
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 -8.21% 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 0.55% on average per year.
BMO shows a small growth in Revenue. In the last year, the Revenue has grown by 6.14%.
BMO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.17% yearly.
EPS 1Y (TTM)-8.21%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%18.75%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%18.04%
3.2 Future
The Earnings Per Share is expected to grow by 9.12% on average over the next years. This is quite good.
BMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.81% yearly.
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.
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
With a Price/Earnings ratio of 14.50, BMO is valued correctly.
BMO's Price/Earnings ratio is a bit more expensive when compared to the industry. BMO is more expensive than 65.32% of the companies in the same industry.
When comparing the Price/Earnings ratio of BMO to the average of the S&P500 Index (26.35), we can say BMO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.07, the valuation of BMO can be described as reasonable.
Based on the Price/Forward Earnings ratio, BMO is valued a bit more expensive than 62.78% of the companies in the same industry.
BMO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 11.07 |
4.2 Price Multiples
82.03% 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 | 7.6 | ||
| 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.
A more expensive valuation may be justified as BMO's earnings are expected to grow with 14.33% in the coming years.
PEG (NY)0.74
PEG (5Y)26.58
EPS Next 2Y17.2%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.44%, BMO is a good candidate for dividend investing.
BMO's Dividend Yield is rather good when compared to the industry average which is at 3.45. BMO pays more dividend than 81.01% of the companies 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 | 4.44% |
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.
BMO has decreased its dividend 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.
The dividend of BMO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP56.48%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
NYSE:BMO (5/28/2025, 3:11:59 PM)
107
+2.19 (+2.09%)
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 Cap77.47B
Analysts69.47
Price Target109.7 (2.52%)
Short Float %1.58%
Short Ratio15.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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 | 14.5 | ||
| Fwd PE | 11.07 | ||
| P/S | 3.1 | ||
| P/FCF | 7.6 | ||
| P/OCF | 6.84 | ||
| P/B | 1.22 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.38
EY6.9%
EPS(NY)9.66
Fwd EY9.03%
FCF(TTM)14.07
FCFY13.15%
OCF(TTM)15.63
OCFY14.61%
SpS34.48
BVpS87.79
TBVpS65.25
PEG (NY)0.74
PEG (5Y)26.58
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
WACC15.2%
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)-8.21%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%18.75%
EPS Next Y19.5%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
EPS Next 5Y9.12%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%18.04%
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%