BANK OF MONTREAL (BMO)

CA0636711016 - Common Stock

87.48  +0.53 (+0.61%)

After market: 87.48 0 (0%)

Fundamental Rating

4

Overall BMO gets a fundamental rating of 4 out of 10. We evaluated BMO against 407 industry peers in the Banks industry. BMO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. BMO is valued correctly, but it does not seem to be growing.



2

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.
BMO had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 0.43%, BMO is doing worse than 81.08% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.37%, BMO is doing worse than 62.90% of the companies in the same industry.
Industry RankSector Rank
ROA 0.43%
ROE 7.37%
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

With a Profit Margin value of 18.37%, BMO is not doing good in the industry: 70.02% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of BMO has declined.
The Operating Margin and Gross Margin are not available for BMO so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 18.37%
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

4

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.
The number of shares outstanding for BMO has been increased compared to 5 years ago.
BMO has a better debt/assets ratio than last year.

2.2 Solvency

The Debt to FCF ratio of BMO is 5.95, which is a neutral value as it means it would take BMO, 5.95 years of fcf income to pay off all of its debts.
BMO has a Debt to FCF ratio of 5.95. This is in the lower half of the industry: BMO underperforms 69.53% of its industry peers.
BMO has a Debt/Equity ratio of 2.55. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.55, BMO is not doing good in the industry: 94.59% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.55
Debt/FCF 5.95
Altman-Z N/A
ROIC/WACCN/A
WACC12.93%

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.
A Quick Ratio of 2.15 indicates that BMO has no problem at all paying its short term obligations.
Looking at the Quick 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.
Industry RankSector Rank
Current Ratio 2.15
Quick Ratio 2.15

3

3. Growth

3.1 Past

BMO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.54%.
The Earnings Per Share has been growing slightly by 5.46% on average over the past years.
BMO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.08%.
The Revenue has been growing slightly by 6.38% on average over the past years.
EPS 1Y (TTM)-12.54%
EPS 3Y15.05%
EPS 5Y5.46%
EPS Q2Q%-11.6%
Revenue 1Y (TTM)1.08%
Revenue growth 3Y7.4%
Revenue growth 5Y6.38%
Sales Q2Q%-5.43%

3.2 Future

BMO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.64% yearly.
The Revenue is expected to grow by 3.82% on average over the next years.
EPS Next Y-7.61%
EPS Next 2Y0.08%
EPS Next 3Y4.64%
EPS Next 5YN/A
Revenue Next Year2.63%
Revenue Next 2Y3.8%
Revenue Next 3Y4.94%
Revenue Next 5Y3.82%

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 stable.
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.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.17, the valuation of BMO can be described as reasonable.
BMO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.08, BMO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.21, the valuation of BMO can be described as reasonable.
BMO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BMO is cheaper than 64.86% 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 20.74.
Industry RankSector Rank
PE 11.17
Fwd PE 10.21

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMO indicates a rather cheap valuation: BMO is cheaper than 97.54% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 2.49
EV/EBITDA N/A

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)2.05
EPS Next 2Y0.08%
EPS Next 3Y4.64%

6

5. Dividend

5.1 Amount

BMO has a Yearly Dividend Yield of 5.21%, which is a nice return.
BMO's Dividend Yield is rather good when compared to the industry average which is at 3.41. BMO pays more dividend than 88.94% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, BMO pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.21%

5.2 History

The dividend of BMO decreases each year by -0.73%.
BMO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.73%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

47.95% of the earnings are spent on dividend by BMO. This is a bit on the high side, but may be sustainable.
DP47.95%
EPS Next 2Y0.08%
EPS Next 3Y4.64%

BANK OF MONTREAL

NYSE:BMO (7/22/2024, 7:12:10 PM)

After market: 87.48 0 (0%)

87.48

+0.53 (+0.61%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap63.46B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 5.21%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
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 RankSector Rank
PE 11.17
Fwd PE 10.21
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)2.05
Profitability
Industry RankSector Rank
ROA 0.43%
ROE 7.37%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) 18.37%
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 RankSector Rank
Debt/Equity 2.55
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)-12.54%
EPS 3Y15.05%
EPS 5Y
EPS Q2Q%
EPS Next Y-7.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.08%
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