BANK OF MONTREAL (BMO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BMO - CA0636711016 - Common Stock
132.58 USD
-0.78 (-0.58%)
132.58 USD
0 (0%)
Taking everything into account, BMO scores 2 out of 10 in our fundamental rating. BMO was compared to 387 industry peers in the Banks industry. Both the profitability and financial health of BMO have multiple concerns. BMO is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years BMO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.56%, BMO is doing worse than 73.64% of the companies in the same industry.
The Return On Equity of BMO (9.40%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 9.4% | ||
| ROIC | N/A |
ROA(3y)0.45%
ROA(5y)0.66%
ROE(3y)7.67%
ROE(5y)10.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of BMO (22.81%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BMO has grown nicely.
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) | 22.81% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-16.71%
PM growth 5Y3.44%
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 less shares outstanding
The number of shares outstanding for BMO has been increased compared to 5 years ago.
The debt/assets ratio for BMO is higher compared to a year ago.
2.2 Solvency
BMO has a debt to FCF ratio of 29.36. This is a negative value and a sign of low solvency as BMO would need 29.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 29.36, BMO is doing worse than 83.72% of the companies in the same industry.
BMO has a Debt/Equity ratio of 2.79. This is a high value indicating a heavy dependency on external financing.
BMO has a worse Debt to Equity ratio (2.79) than 91.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 29.36 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.99%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.59% over the past year.
The Earnings Per Share has been growing by 9.56% on average over the past years. This is quite good.
Looking at the last year, BMO shows a quite strong growth in Revenue. The Revenue has grown by 10.61% in the last year.
BMO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.57% yearly.
EPS 1Y (TTM)25.59%
EPS 3Y-2.79%
EPS 5Y9.56%
EPS Q2Q%72.63%
Revenue 1Y (TTM)10.61%
Revenue growth 3Y2.47%
Revenue growth 5Y7.57%
Sales Q2Q%11.63%
3.2 Future
The Earnings Per Share is expected to grow by 5.35% on average over the next years.
BMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.13% yearly.
EPS Next Y12.71%
EPS Next 2Y13.1%
EPS Next 3Y11.65%
EPS Next 5Y5.35%
Revenue Next Year5.06%
Revenue Next 2Y5.01%
Revenue Next 3Y4.53%
Revenue Next 5Y3.13%
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
The Price/Earnings ratio is 15.10, which indicates a correct valuation of BMO.
66.15% of the companies in the same industry are cheaper than BMO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BMO to the average of the S&P500 Index (27.19), we can say BMO is valued slightly cheaper.
BMO is valuated correctly with a Price/Forward Earnings ratio of 13.40.
Based on the Price/Forward Earnings ratio, BMO is valued a bit more expensive than 69.51% of the companies in the same industry.
BMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 13.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMO indicates a slightly more expensive valuation: BMO is more expensive than 64.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.37 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BMO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.19
PEG (5Y)1.58
EPS Next 2Y13.1%
EPS Next 3Y11.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.75%, BMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.78, 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
The dividend of BMO is nicely growing with an annual growth rate of 12.66%!
BMO has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BMO decreased recently.
Dividend Growth(5Y)12.66%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BMO pays out 60.81% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BMO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.81%
EPS Next 2Y13.1%
EPS Next 3Y11.65%
132.58
-0.78 (-0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.35%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner Change0%
Market Cap94.35B
Revenue(TTM)36.27B
Net Income(TTM)8.27B
Analysts65.26
Price Target136.45 (2.92%)
Short Float %0.71%
Short Ratio7.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend5.11
Dividend Growth(5Y)12.66%
DP60.81%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.74%
Min EPS beat(2)7.03%
Max EPS beat(2)8.45%
EPS beat(4)4
Avg EPS beat(4)10.72%
Min EPS beat(4)2.34%
Max EPS beat(4)25.04%
EPS beat(8)4
Avg EPS beat(8)-0.97%
EPS beat(12)5
Avg EPS beat(12)-2.57%
EPS beat(16)6
Avg EPS beat(16)-1.13%
Revenue beat(2)2
Avg Revenue beat(2)1.47%
Min Revenue beat(2)0.33%
Max Revenue beat(2)2.6%
Revenue beat(4)3
Avg Revenue beat(4)2.24%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)7.39%
Revenue beat(8)3
Avg Revenue beat(8)-0.25%
Revenue beat(12)4
Avg Revenue beat(12)-2.85%
Revenue beat(16)7
Avg Revenue beat(16)3.65%
PT rev (1m)8.54%
PT rev (3m)9.19%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-1.23%
EPS NY rev (1m)0.68%
EPS NY rev (3m)1.64%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)1.82%
Revenue NY rev (3m)1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 13.4 | ||
| P/S | 3.61 | ||
| P/FCF | 15.37 | ||
| P/OCF | 12.77 | ||
| P/B | 1.49 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | N/A |
EPS(TTM)8.78
EY6.62%
EPS(NY)9.9
Fwd EY7.46%
FCF(TTM)8.63
FCFY6.51%
OCF(TTM)10.38
OCFY7.83%
SpS36.77
BVpS89.26
TBVpS67.41
PEG (NY)1.19
PEG (5Y)1.58
Graham Number132.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 9.4% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.81% | ||
| GM | N/A | ||
| FCFM | 23.46% |
ROA(3y)0.45%
ROA(5y)0.66%
ROE(3y)7.67%
ROE(5y)10.96%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-16.71%
PM growth 5Y3.44%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 29.36 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 79.31% | ||
| Cap/Sales | 4.77% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 102.88% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC13.99%
ROIC/WACCN/A
Cap/Depr(3y)77.78%
Cap/Depr(5y)80.03%
Cap/Sales(3y)5.09%
Cap/Sales(5y)4.64%
Profit Quality(3y)219.61%
Profit Quality(5y)251.73%
High Growth Momentum
Growth
EPS 1Y (TTM)25.59%
EPS 3Y-2.79%
EPS 5Y9.56%
EPS Q2Q%72.63%
EPS Next Y12.71%
EPS Next 2Y13.1%
EPS Next 3Y11.65%
EPS Next 5Y5.35%
Revenue 1Y (TTM)10.61%
Revenue growth 3Y2.47%
Revenue growth 5Y7.57%
Sales Q2Q%11.63%
Revenue Next Year5.06%
Revenue Next 2Y5.01%
Revenue Next 3Y4.53%
Revenue Next 5Y3.13%
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-66.14%
FCF growth 3Y34.36%
FCF growth 5Y-29.77%
OCF growth 1Y-61.65%
OCF growth 3Y27.36%
OCF growth 5Y-27.42%
BANK OF MONTREAL / BMO FAQ
What is the ChartMill fundamental rating of BANK OF MONTREAL (BMO) stock?
ChartMill assigns a fundamental rating of 2 / 10 to BMO.
What is the valuation status for BMO stock?
ChartMill assigns a valuation rating of 2 / 10 to BANK OF MONTREAL (BMO). This can be considered as Overvalued.
What is the profitability of BMO stock?
BANK OF MONTREAL (BMO) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for BMO stock?
The Price/Earnings (PE) ratio for BANK OF MONTREAL (BMO) is 15.1 and the Price/Book (PB) ratio is 1.49.
What is the financial health of BANK OF MONTREAL (BMO) stock?
The financial health rating of BANK OF MONTREAL (BMO) is 0 / 10.