BANK OF MONTREAL (BMO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BMO - CA0636711016 - Common Stock
132.09 USD
+2.51 (+1.94%)
132.09 USD
0 (0%)
We assign a fundamental rating of 2 out of 10 to BMO. BMO was compared to 387 industry peers in the Banks industry. BMO may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, BMO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BMO was profitable.
BMO had a positive operating cash flow in the past year.
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
BMO has a Return On Assets of 0.56%. This is in the lower half of the industry: BMO underperforms 74.16% of its industry peers.
BMO's Return On Equity of 9.40% is in line compared to the rest of the industry. BMO outperforms 56.85% of its industry peers.
| 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.
BMO's Profit Margin has improved 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) | 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
BMO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BMO has a worse debt to assets ratio.
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.
BMO has a Debt to FCF ratio of 29.36. This is amonst the worse of the industry: BMO underperforms 83.98% of its industry peers.
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 92.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 29.36 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.04%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
BMO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.59%, which is quite impressive.
The Earnings Per Share has been growing by 9.56% on average over the past years. This is quite good.
BMO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.61%.
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
Based on estimates for the next years, BMO will show a small growth in Earnings Per Share. The EPS will grow by 5.35% on average per year.
The Revenue is expected to grow by 3.13% on average over the next years.
EPS Next Y11.95%
EPS Next 2Y12.1%
EPS Next 3Y5.77%
EPS Next 5Y5.35%
Revenue Next Year3.18%
Revenue Next 2Y3.41%
Revenue Next 3Y3.01%
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 15.03, which 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 64.34% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, BMO is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.42, BMO is valued correctly.
Based on the Price/Forward Earnings ratio, BMO is valued a bit more expensive than 68.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.96, BMO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 13.42 |
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 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.29 | ||
| 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)1.26
PEG (5Y)1.57
EPS Next 2Y12.1%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.81%, BMO has a reasonable but not impressive dividend return.
BMO's Dividend Yield is a higher than the industry average which is at 3.11.
Compared to an average S&P500 Dividend Yield of 2.31, BMO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
On average, the dividend of BMO grows each year by 12.66%, which is quite nice.
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)12.66%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
60.81% of the earnings are spent on dividend by BMO. This is not a sustainable payout ratio.
BMO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.81%
EPS Next 2Y12.1%
EPS Next 3Y5.77%
132.09
+2.51 (+1.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.34%
Inst Owner Change5.67%
Ins Owners0.04%
Ins Owner Change0%
Market Cap94.00B
Revenue(TTM)36.27B
Net Income(TTM)8.27B
Analysts65.26
Price Target132.17 (0.06%)
Short Float %0.73%
Short Ratio7.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Yearly Dividend5.05
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)-2.95%
Revenue beat(16)7
Avg Revenue beat(16)3.58%
PT rev (1m)5.52%
PT rev (3m)12.43%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)-0.69%
EPS NY rev (1m)0.96%
EPS NY rev (3m)3.58%
Revenue NQ rev (1m)1.65%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 13.42 | ||
| P/S | 3.59 | ||
| P/FCF | 15.29 | ||
| P/OCF | 12.71 | ||
| P/B | 1.48 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | N/A |
EPS(TTM)8.79
EY6.65%
EPS(NY)9.84
Fwd EY7.45%
FCF(TTM)8.64
FCFY6.54%
OCF(TTM)10.39
OCFY7.87%
SpS36.82
BVpS89.37
TBVpS67.49
PEG (NY)1.26
PEG (5Y)1.57
Graham Number132.94
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
WACC14.04%
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 Y11.95%
EPS Next 2Y12.1%
EPS Next 3Y5.77%
EPS Next 5Y5.35%
Revenue 1Y (TTM)10.61%
Revenue growth 3Y2.47%
Revenue growth 5Y7.57%
Sales Q2Q%11.63%
Revenue Next Year3.18%
Revenue Next 2Y3.41%
Revenue Next 3Y3.01%
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 of BANK OF MONTREAL (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.
How financially healthy is BANK OF MONTREAL?
The financial health rating of BANK OF MONTREAL (BMO) is 0 / 10.
Is the dividend of BANK OF MONTREAL sustainable?
The dividend rating of BANK OF MONTREAL (BMO) is 5 / 10 and the dividend payout ratio is 60.81%.