BANK OF MONTREAL (BMO) Stock Fundamental Analysis
USA - NYSE:BMO - CA0636711016 - Common Stock
124.18 USD
+0.51 (+0.41%)
124.18 USD
0 (0%)
Overall BMO gets a fundamental rating of 3 out of 10. We evaluated BMO against 390 industry peers in the Banks industry. BMO has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
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
BMO's Return On Assets of 0.58% is on the low side compared to the rest of the industry. BMO is outperformed by 73.08% of its industry peers.
The Return On Equity of BMO (9.57%) is better than 61.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 9.57% | ||
| 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
The Profit Margin of BMO (23.12%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BMO has remained more or less at the same level.
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) | 23.12% | ||
| 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.
Compared to 1 year ago, BMO has more shares outstanding
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
BMO has a debt to FCF ratio of 455.97. This is a negative value and a sign of low solvency as BMO would need 455.97 years to pay back of all of its debts.
The Debt to FCF ratio of BMO (455.97) is worse than 86.67% of its industry peers.
BMO has a Debt/Equity ratio of 2.69. This is a high value indicating a heavy dependency on external financing.
BMO's Debt to Equity ratio of 2.69 is on the low side compared to the rest of the industry. BMO is outperformed by 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 455.97 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.79%
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 been growing slightly by 1.79% over the past year.
The Earnings Per Share has been growing slightly by 0.55% on average over the past years.
The Revenue has grown by 11.61% in the past year. This is quite good.
BMO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.17% yearly.
EPS 1Y (TTM)1.79%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%22.35%
Revenue 1Y (TTM)11.61%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%9.53%
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.
Based on estimates for the next years, BMO will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
EPS Next Y23.54%
EPS Next 2Y18.01%
EPS Next 3Y15.89%
EPS Next 5Y9.12%
Revenue Next Year10.89%
Revenue Next 2Y6.92%
Revenue Next 3Y5.57%
Revenue Next 5Y4.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.13, the valuation of BMO can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of BMO indicates a slightly more expensive valuation: BMO is more expensive than 73.59% of the companies listed in the same industry.
BMO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.89 indicates a correct valuation of BMO.
Based on the Price/Forward Earnings ratio, BMO is valued a bit more expensive than 69.74% of the companies in the same industry.
BMO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 12.89 |
4.2 Price Multiples
BMO's Price/Free Cash Flow ratio is rather expensive when compared to the industry. BMO is more expensive than 83.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 240.06 | ||
| 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 15.89% in the coming years.
PEG (NY)0.68
PEG (5Y)29.57
EPS Next 2Y18.01%
EPS Next 3Y15.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.77%, BMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.52, 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
5.2 History
The dividend of BMO has a limited annual growth rate of 4.23%.
BMO has been paying a dividend for at least 10 years, so it has a reliable track record.
BMO has decreased its dividend recently.
Dividend Growth(5Y)4.23%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BMO pays out 60.03% of its income as dividend. This is not a sustainable payout ratio.
BMO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.03%
EPS Next 2Y18.01%
EPS Next 3Y15.89%
124.18
+0.51 (+0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners53.35%
Inst Owner Change-0.15%
Ins Owners0.04%
Ins Owner Change0%
Market Cap88.77B
Revenue(TTM)35.89B
Net Income(TTM)8.30B
Analysts67.78
Price Target125.27 (0.88%)
Short Float %0.82%
Short Ratio9.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend3.77
Dividend Growth(5Y)4.23%
DP60.03%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.4%
Min EPS beat(2)2.34%
Max EPS beat(2)8.45%
EPS beat(4)3
Avg EPS beat(4)3.5%
Min EPS beat(4)-21.82%
Max EPS beat(4)25.04%
EPS beat(8)3
Avg EPS beat(8)-2.16%
EPS beat(12)4
Avg EPS beat(12)-3.32%
EPS beat(16)6
Avg EPS beat(16)-1.4%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)0.33%
Revenue beat(4)2
Avg Revenue beat(4)1.37%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)7.39%
Revenue beat(8)2
Avg Revenue beat(8)-1.11%
Revenue beat(12)4
Avg Revenue beat(12)0.98%
Revenue beat(16)6
Avg Revenue beat(16)3.34%
PT rev (1m)-0.71%
PT rev (3m)8.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.48%
EPS NY rev (1m)0%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 12.89 | ||
| P/S | 3.46 | ||
| P/FCF | 240.06 | ||
| P/OCF | 57.04 | ||
| P/B | 1.43 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.7
EY6.2%
EPS(NY)9.63
Fwd EY7.76%
FCF(TTM)0.52
FCFY0.42%
OCF(TTM)2.18
OCFY1.75%
SpS35.84
BVpS86.61
TBVpS65.11
PEG (NY)0.68
PEG (5Y)29.57
Graham Number122.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 9.57% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 23.12% | ||
| GM | N/A | ||
| FCFM | 1.44% |
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
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-8.54%
PM growth 5Y-0.59%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 455.97 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 77.45% | ||
| Cap/Sales | 4.63% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 6.24% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC15.79%
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)1.79%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%22.35%
EPS Next Y23.54%
EPS Next 2Y18.01%
EPS Next 3Y15.89%
EPS Next 5Y9.12%
Revenue 1Y (TTM)11.61%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%9.53%
Revenue Next Year10.89%
Revenue Next 2Y6.92%
Revenue Next 3Y5.57%
Revenue Next 5Y4.46%
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-97.67%
FCF growth 3Y-13.92%
FCF growth 5Y-0.51%
OCF growth 1Y-90.87%
OCF growth 3Y-12.98%
OCF growth 5Y-0.19%
BANK OF MONTREAL / BMO FAQ
What is the ChartMill fundamental rating of BANK OF MONTREAL (BMO) stock?
ChartMill assigns a fundamental rating of 3 / 10 to BMO.
What is the valuation status of BANK OF MONTREAL (BMO) stock?
ChartMill assigns a valuation rating of 3 / 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 60.03%.