BANK OF MONTREAL (BMO) Stock Fundamental Analysis
NYSE:BMO - New York Stock Exchange, Inc. - CA0636711016 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to BMO. BMO was compared to 395 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. Finally BMO also has an excellent dividend rating.
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.
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 0.55%, BMO is doing worse than 73.67% of the companies in the same industry.
BMO has a Return On Equity (9.15%) which is comparable to the rest of the 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
BMO's Profit Margin of 22.37% is in line compared to the rest of the industry. BMO outperforms 43.80% of its industry peers.
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.
BMO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BMO has about the same debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of BMO is 34.71, which is on the high side as it means it would take BMO, 34.71 years of fcf income to pay off all of its debts.
BMO has a worse Debt to FCF ratio (34.71) than 83.54% 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.
Looking at the Debt to Equity ratio, with a value of 2.67, BMO is doing worse than 92.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 34.71 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.57%
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 by -5.74% in the last year.
BMO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.55% yearly.
BMO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.61%.
The Revenue has been growing slightly by 5.17% on average over the past years.
EPS 1Y (TTM)-5.74%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%-1.78%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%5.67%
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.
The Revenue is expected to grow by 4.06% on average over the next years.
EPS Next Y19.5%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
EPS Next 5Y9.12%
Revenue Next Year10.9%
Revenue Next 2Y7.16%
Revenue Next 3Y5.61%
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
A Price/Earnings ratio of 14.34 indicates a correct valuation of BMO.
Compared to the rest of the industry, the Price/Earnings ratio of BMO indicates a slightly more expensive valuation: BMO is more expensive than 68.61% of the companies listed in the same industry.
BMO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.90, which indicates a very decent valuation of BMO.
BMO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BMO is more expensive than 63.80% of the companies in the same industry.
BMO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
BMO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BMO is more expensive than 67.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.58 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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)0.74
PEG (5Y)26.29
EPS Next 2Y17.2%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 4.42%, which is a nice return.
BMO's Dividend Yield is rather good when compared to the industry average which is at 3.46. BMO pays more dividend than 81.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, BMO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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.
The dividend of BMO decreased 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.
The dividend of BMO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.84%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
106.25
+0.04 (+0.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners53.29%
Inst Owner Change-1.93%
Ins Owners0.03%
Ins Owner Change0%
Market Cap76.93B
Analysts68.42
Price Target112.99 (6.34%)
Short Float %0.81%
Short Ratio8.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
Yearly Dividend3.88
Dividend Growth(5Y)4.23%
DP62.84%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.2%
Min EPS beat(2)-0.64%
Max EPS beat(2)25.04%
EPS beat(4)1
Avg EPS beat(4)-0.69%
Min EPS beat(4)-21.82%
Max EPS beat(4)25.04%
EPS beat(8)1
Avg EPS beat(8)-5.11%
EPS beat(12)2
Avg EPS beat(12)-4.48%
EPS beat(16)5
Avg EPS beat(16)-1.12%
Revenue beat(2)1
Avg Revenue beat(2)1.66%
Min Revenue beat(2)-4.08%
Max Revenue beat(2)7.39%
Revenue beat(4)1
Avg Revenue beat(4)0.34%
Min Revenue beat(4)-4.08%
Max Revenue beat(4)7.39%
Revenue beat(8)1
Avg Revenue beat(8)-1.58%
Revenue beat(12)3
Avg Revenue beat(12)-0.26%
Revenue beat(16)6
Avg Revenue beat(16)4.32%
PT rev (1m)2.99%
PT rev (3m)4.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.59%
EPS NY rev (1m)0%
EPS NY rev (3m)5.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 10.9 | ||
| P/S | 2.99 | ||
| P/FCF | 15.58 | ||
| P/OCF | 12.49 | ||
| P/B | 1.22 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.41
EY6.97%
EPS(NY)9.75
Fwd EY9.17%
FCF(TTM)6.82
FCFY6.42%
OCF(TTM)8.51
OCFY8.01%
SpS35.5
BVpS86.78
TBVpS65.08
PEG (NY)0.74
PEG (5Y)26.29
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
WACC16.57%
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)-5.74%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%-1.78%
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%5.67%
Revenue Next Year10.9%
Revenue Next 2Y7.16%
Revenue Next 3Y5.61%
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%