BANK OF MONTREAL (BMO)
CA0636711016 - Common Stock
Overall BMO gets a fundamental rating of 3 out of 10. We evaluated BMO against 404 industry peers in the Banks industry. While BMO seems to be doing ok healthwise, there are quite some concerns on its profitability. BMO has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years BMO has been profitable.
BMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BMO's Return On Assets of 0.45% is on the low side compared to the rest of the industry. BMO is outperformed by 76.81% of its industry peers.
BMO has a Return On Equity of 7.56%. This is comparable to the rest of the industry: BMO outperforms 43.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 7.56% | ||
| 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's Profit Margin of 19.47% is on the low side compared to the rest of the industry. BMO is outperformed by 63.84% of its industry peers.
BMO's Profit Margin has declined 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) | 19.47% | ||
| 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.
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 been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of BMO is 8.04, which is on the high side as it means it would take BMO, 8.04 years of fcf income to pay off all of its debts.
BMO has a worse Debt to FCF ratio (8.04) than 75.06% of its industry peers.
BMO has a Debt/Equity ratio of 2.48. This is a high value indicating a heavy dependency on external financing.
BMO has a Debt to Equity ratio of 2.48. This is amonst the worse of the industry: BMO underperforms 94.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | 8.04 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.4%
2.3 Liquidity
A Current Ratio of 2.15 indicates that BMO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.15, BMO belongs to the top of the industry, outperforming 99.75% of the companies in the same industry.
BMO has a Quick Ratio of 2.15. This indicates that BMO is financially healthy and has no problem in meeting its short term obligations.
BMO has a Quick ratio of 2.15. This is amongst the best in the industry. BMO outperforms 99.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
The earnings per share for BMO have decreased strongly by -11.45% 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.
The Revenue has decreased by -3.62% in the past year.
Measured over the past years, BMO shows a small growth in Revenue. The Revenue has been growing by 6.38% on average per year.
EPS 1Y (TTM)-11.45%
EPS 3Y15.05%
EPS 5Y5.46%
EPS Q2Q%-5.04%
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y7.4%
Revenue growth 5Y6.38%
Sales Q2Q%1.69%
3.2 Future
Based on estimates for the next years, BMO will show a small growth in Earnings Per Share. The EPS will grow by 4.30% on average per year.
BMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.82% yearly.
EPS Next Y-8.32%
EPS Next 2Y-0.25%
EPS Next 3Y4.3%
EPS Next 5YN/A
Revenue Next Year2.44%
Revenue Next 2Y4.09%
Revenue Next 3Y5.02%
Revenue Next 5Y3.82%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 12.07 indicates a correct valuation of BMO.
BMO's Price/Earnings is on the same level as the industry average.
BMO is valuated cheaply when we compare the Price/Earnings ratio to 31.46, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.96, the valuation of BMO can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as BMO.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, BMO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BMO is valued cheaply inside the industry as 96.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.56 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.21
EPS Next 2Y-0.25%
EPS Next 3Y4.3%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 4.80%, which is a nice return.
Compared to an average industry Dividend Yield of 3.20, BMO pays a better dividend. On top of this BMO pays more dividend than 88.28% 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 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
5.2 History
The dividend of BMO decreases each year by -0.73%.
BMO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-0.73%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
52.89% of the earnings are spent on dividend by BMO. This is a bit on the high side, but may be sustainable.
DP52.89%
EPS Next 2Y-0.25%
EPS Next 3Y4.3%
BANK OF MONTREAL
NYSE:BMO (10/22/2024, 1:28:07 PM)
92.61
-0.18 (-0.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap67.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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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 | 12.07 | ||
| Fwd PE | 10.96 | ||
| 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)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 7.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 19.47% | ||
| 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 | 2.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-11.45%
EPS 3Y15.05%
EPS 5Y
EPS Q2Q%
EPS Next Y-8.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y7.4%
Revenue growth 5Y
Sales 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