BANK OF MONTREAL (BMO) Stock Fundamental Analysis
NYSE:BMO - New York Stock Exchange, Inc. - CA0636711016 - Common Stock - Currency: USD
Taking everything into account, BMO scores 3 out of 10 in our fundamental rating. BMO was compared to 392 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.
1. Profitability
1.1 Basic Checks
BMO had positive earnings in the past year.
BMO had a positive operating cash flow in the past year.
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
BMO's Return On Assets of 0.55% is on the low side compared to the rest of the industry. BMO is outperformed by 71.94% of its industry peers.
With a Return On Equity value of 9.15%, BMO perfoms like the industry average, outperforming 57.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 9.15% | ||
| 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
Looking at the Profit Margin, with a value of 22.37%, BMO is in line with its industry, outperforming 44.64% of the companies in the same 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) | 22.37% | ||
| 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.
Compared to 5 years ago, BMO has more shares outstanding
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 34.71. This is a negative value and a sign of low solvency as BMO would need 34.71 years to pay back of all of its debts.
BMO has a Debt to FCF ratio of 34.71. This is amonst the worse of the industry: BMO underperforms 82.65% of its industry peers.
A Debt/Equity ratio of 2.67 is on the high side and indicates that BMO has dependencies on debt financing.
BMO has a worse Debt to Equity ratio (2.67) than 93.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 34.71 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.72%
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 -5.03%.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.61%.
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)-5.03%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%1.16%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%8.65%
3.2 Future
Based on estimates for the next years, BMO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.12% on average per year.
Based on estimates for the next years, BMO will show a small growth in Revenue. The Revenue will grow by 4.06% on average per year.
EPS Next Y19.5%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
EPS Next 5Y9.12%
Revenue Next Year10.49%
Revenue Next 2Y6.75%
Revenue Next 3Y5.86%
Revenue Next 5Y4.06%
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.
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
The Price/Earnings ratio is 15.13, which indicates a correct valuation of BMO.
Based on the Price/Earnings ratio, BMO is valued a bit more expensive than the industry average as 70.41% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.03, BMO is valued a bit cheaper.
BMO is valuated reasonably with a Price/Forward Earnings ratio of 11.59.
BMO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BMO is more expensive than 65.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BMO to the average of the S&P500 Index (36.28), we can say BMO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
65.82% of the companies in the same industry are cheaper than BMO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.44 | ||
| 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)0.78
PEG (5Y)27.74
EPS Next 2Y17.2%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 4.26%, which is a nice return.
Compared to an average industry Dividend Yield of 3.51, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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.
BMO has decreased its dividend recently.
Dividend Growth(5Y)4.23%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
62.84% 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.
DP62.84%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
111.98
+0.03 (+0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners53.29%
Inst Owner Change-0.08%
Ins Owners0.03%
Ins Owner Change0%
Market Cap80.44B
Analysts67.37
Price Target115.18 (2.86%)
Short Float %1.08%
Short Ratio12.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend3.82
Dividend Growth(5Y)4.23%
DP62.84%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.69%
Min EPS beat(2)2.34%
Max EPS beat(2)25.04%
EPS beat(4)2
Avg EPS beat(4)0.05%
Min EPS beat(4)-21.82%
Max EPS beat(4)25.04%
EPS beat(8)2
Avg EPS beat(8)-4.74%
EPS beat(12)3
Avg EPS beat(12)-4.23%
EPS beat(16)6
Avg EPS beat(16)-0.93%
Revenue beat(2)1
Avg Revenue beat(2)3.01%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)7.39%
Revenue beat(4)1
Avg Revenue beat(4)1.02%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)7.39%
Revenue beat(8)1
Avg Revenue beat(8)-1.25%
Revenue beat(12)3
Avg Revenue beat(12)-0.03%
Revenue beat(16)6
Avg Revenue beat(16)4.49%
PT rev (1m)0.23%
PT rev (3m)3.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 11.59 | ||
| P/S | 3.16 | ||
| P/FCF | 16.44 | ||
| P/OCF | 13.18 | ||
| P/B | 1.29 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.4
EY6.61%
EPS(NY)9.66
Fwd EY8.63%
FCF(TTM)6.81
FCFY6.08%
OCF(TTM)8.5
OCFY7.59%
SpS35.46
BVpS86.68
TBVpS65.01
PEG (NY)0.78
PEG (5Y)27.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 9.15% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.37% | ||
| GM | N/A | ||
| FCFM | 19.21% |
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-Score8
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 34.71 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 77.93% | ||
| Cap/Sales | 4.76% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 85.89% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC15.72%
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)-5.03%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%1.16%
EPS Next Y19.5%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
EPS Next 5Y9.12%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%8.65%
Revenue Next Year10.49%
Revenue Next 2Y6.75%
Revenue Next 3Y5.86%
Revenue Next 5Y4.06%
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-29.95%
FCF growth 3Y-13.92%
FCF growth 5Y-0.51%
OCF growth 1Y-25.2%
OCF growth 3Y-12.98%
OCF growth 5Y-0.19%