BANK OF MONTREAL (BMO)
CA0636711016 - Common Stock
BMO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 416 industry peers in the Banks industry. BMO has a bad profitability rating. Also its financial health evaluation is rather negative. BMO has a decent growth rate and is not valued too expensively. BMO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BMO was profitable.
BMO had a positive operating cash flow in the past year.
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 0.56%. This is amonst the worse of the industry: BMO underperforms 84.82% of its industry peers.
With a Return On Equity value of 9.38%, BMO is not doing good in the industry: 63.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 9.38% | ||
| ROIC | N/A |
ROA(3y)0.81%
ROA(5y)0.75%
ROE(3y)13.45%
ROE(5y)12.55%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BMO has a worse Profit Margin (20.82%) than 73.98% of its industry peers.
In the last couple of years the Profit Margin of BMO has grown nicely.
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) | 20.82% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y20.95%
PM growth 5Y10.56%
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.
Compared to 1 year ago, BMO has more shares outstanding
BMO has more shares outstanding than it did 5 years ago.
BMO has a better debt/assets ratio than last year.
2.2 Solvency
BMO has a debt to FCF ratio of 7.96. This is a slightly negative value and a sign of low solvency as BMO would need 7.96 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.96, BMO is not doing good in the industry: 76.14% of the companies in the same industry are doing better.
BMO has a Debt/Equity ratio of 2.31. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.31, BMO is doing worse than 93.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | 7.96 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.31%
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 strongly by -11.60% in the last year.
BMO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.23% yearly.
Looking at the last year, BMO shows a quite strong growth in Revenue. The Revenue has grown by 12.44% in the last year.
The Revenue has been growing by 9.34% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.6%
EPS 3Y12%
EPS 5Y10.23%
EPS growth Q2Q-10.03%
Revenue 1Y (TTM)12.44%
Revenue growth 3Y10.68%
Revenue growth 5Y9.34%
Revenue growth Q2Q30%
3.2 Future
Based on estimates for the next years, BMO will show a decrease in Earnings Per Share. The EPS will decrease by -0.76% on average per year.
Based on estimates for the next years, BMO will show a small growth in Revenue. The Revenue will grow by 6.02% on average per year.
EPS Next Y-9.21%
EPS Next 2Y-1.78%
EPS Next 3Y-0.76%
EPS Next 5YN/A
Revenue Next Year15.18%
Revenue Next 2Y11.03%
Revenue Next 3Y8.7%
Revenue Next 5Y6.02%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 9.08, the valuation of BMO can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BMO is on the same level as its industry peers.
BMO is valuated cheaply when we compare the Price/Earnings ratio to 24.46, which is the current average of the S&P500 Index.
BMO is valuated reasonably with a Price/Forward Earnings ratio of 8.50.
Based on the Price/Forward Earnings ratio, BMO is valued a bit cheaper than 67.23% of the companies in the same industry.
BMO is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 8.5 |
4.2 Price Multiples
BMO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMO is cheaper than 90.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.48 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y-1.78%
EPS Next 3Y-0.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.34%, BMO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.96, BMO pays a better dividend. On top of this BMO pays more dividend than 80.72% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.63, BMO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
5.2 History
The dividend of BMO has a limited annual growth rate of 4.75%.
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)4.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BMO pays out 38.53% of its income as dividend. This is a sustainable payout ratio.
DP38.53%
EPS Next 2Y-1.78%
EPS Next 3Y-0.76%
BANK OF MONTREAL
NYSE:BMO (11/28/2023, 7:04:00 PM)
After market: 79.93 0 (0%)79.93
-0.68 (-0.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)08-29 2023-08-29/bmo
Earnings (Next)12-01 2023-12-01/bmo
Inst Owners46.59%
Inst Owner Change1.9%
Ins Owners0%
Ins Owner Change0%
Market Cap57.00B
Analysts72
Price Target95.05 (18.92%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
Dividend Growth(5Y)4.75%
DP38.53%
Div Incr Years1
Div Non Decr Years1
Ex-Date10-27 2023-10-27 (1.47)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.69%
Min EPS beat(2)-12.19%
Max EPS beat(2)-9.19%
EPS beat(4)1
Avg EPS beat(4)-5.64%
Min EPS beat(4)-12.19%
Max EPS beat(4)0.77%
Revenue beat(2)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-2.52%
Max Revenue beat(2)3.44%
Revenue beat(4)2
Avg Revenue beat(4)9.27%
Min Revenue beat(4)-13.62%
Max Revenue beat(4)49.76%
PT rev (1m)-0.85%
PT rev (3m)-6.94%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-7.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 8.5 | ||
| P/S | 2.32 | ||
| P/FCF | 3.48 | ||
| P/OCF | 3.24 | ||
| P/B | 1.04 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | N/A |
EPS(TTM)8.8
EY11.01%
EPS(NY)9.4
Fwd EY11.76%
FCF(TTM)22.96
FCFY28.73%
OCF(TTM)24.64
OCFY30.82%
SpS34.45
BVpS76.49
TBVpS54.8
PEG (NY)N/A
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 9.38% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 20.82% | ||
| GM | N/A | ||
| FCFM | 66.64% |
ROA(3y)0.81%
ROA(5y)0.75%
ROE(3y)13.45%
ROE(5y)12.55%
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 3Y20.95%
PM growth 5Y10.56%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | 7.96 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 86.4% | ||
| Cap/Sales | 4.87% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 320.12% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC7.31%
ROIC/WACCN/A
Cap/Depr(3y)79.82%
Cap/Depr(5y)90.32%
Cap/Sales(3y)3.97%
Cap/Sales(5y)4.04%
Profit Quality(3y)542.24%
Profit Quality(5y)491.56%
Growth
EPS 1Y (TTM)-11.6%
EPS 3Y12%
EPS 5Y10.23%
EPS growth Q2Q-10.03%
EPS Next Y-9.21%
EPS Next 2Y-1.78%
EPS Next 3Y-0.76%
EPS Next 5YN/A
Revenue 1Y (TTM)12.44%
Revenue growth 3Y10.68%
Revenue growth 5Y9.34%
Revenue growth Q2Q30%
Revenue Next Year15.18%
Revenue Next 2Y11.03%
Revenue Next 3Y8.7%
Revenue Next 5Y6.02%
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 1Y78.35%
FCF growth 3Y-50.06%
FCF growth 5Y10.64%
OCF growth 1Y77.79%
OCF growth 3Y-44.69%
OCF growth 5Y11.26%