BANK OF MONTREAL (BMO) Stock Fundamental Analysis
USA - NYSE:BMO - CA0636711016 - Common Stock
129.73 USD
-0.14 (-0.11%)
129.73 USD
0 (0%)
BMO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 392 industry peers in the Banks industry. BMO may be in some trouble as it scores bad on both profitability and health. BMO is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years BMO always reported a positive cash flow from operatings.
1.2 Ratios
BMO has a Return On Assets of 0.58%. This is in the lower half of the industry: BMO underperforms 71.17% of its industry peers.
The Return On Equity of BMO (9.57%) is better than 62.50% 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
Looking at the Profit Margin, with a value of 23.12%, BMO is in line with its industry, outperforming 48.47% of the companies in the same industry.
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) | 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
The number of shares outstanding for BMO has been increased compared to 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.
BMO's Debt to FCF ratio of 455.97 is on the low side compared to the rest of the industry. BMO is outperformed by 84.95% of its industry peers.
A Debt/Equity ratio of 2.69 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 2.69, BMO is doing worse than 91.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 455.97 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.91%
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.
BMO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.55% yearly.
The Revenue has grown by 11.61% in the past year. This is quite good.
The Revenue has been growing slightly by 5.17% on average over the past years.
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
BMO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.12% yearly.
Based on estimates for the next years, BMO will show a small growth in Revenue. The Revenue will grow by 4.08% on average per year.
EPS Next Y19.37%
EPS Next 2Y16.51%
EPS Next 3Y14.34%
EPS Next 5Y9.12%
Revenue Next Year10.89%
Revenue Next 2Y6.92%
Revenue Next 3Y5.59%
Revenue Next 5Y4.08%
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
With a Price/Earnings ratio of 16.53, BMO is valued correctly.
Based on the Price/Earnings ratio, BMO is valued a bit more expensive than 72.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, BMO is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.56, which indicates a correct valuation of BMO.
Based on the Price/Forward Earnings ratio, BMO is valued a bit more expensive than the industry average as 70.66% of the companies are valued more cheaply.
BMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 13.56 |
4.2 Price Multiples
BMO's Price/Free Cash Flow ratio is rather expensive when compared to the industry. BMO is more expensive than 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 246.66 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BMO's 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 14.34% in the coming years.
PEG (NY)0.85
PEG (5Y)30.3
EPS Next 2Y16.51%
EPS Next 3Y14.34%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 3.72%. Purely for dividend investing, there may be better candidates out there.
BMO's Dividend Yield is a higher than the industry average which is at 3.73.
Compared to an average S&P500 Dividend Yield of 2.38, BMO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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.
The dividend of BMO decreased 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.
The dividend of BMO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.03%
EPS Next 2Y16.51%
EPS Next 3Y14.34%
129.73
-0.14 (-0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners53.29%
Inst Owner Change1.21%
Ins Owners0.03%
Ins Owner Change0%
Market Cap92.93B
Analysts66.67
Price Target125.86 (-2.98%)
Short Float %0.85%
Short Ratio8.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
Yearly Dividend3.82
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)8.64%
PT rev (3m)11.4%
EPS NQ rev (1m)4.68%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 13.56 | ||
| P/S | 3.56 | ||
| P/FCF | 246.66 | ||
| P/OCF | 58.61 | ||
| P/B | 1.47 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.85
EY6.05%
EPS(NY)9.57
Fwd EY7.38%
FCF(TTM)0.53
FCFY0.41%
OCF(TTM)2.21
OCFY1.71%
SpS36.44
BVpS88.05
TBVpS66.2
PEG (NY)0.85
PEG (5Y)30.3
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
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-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
WACC15.91%
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 Y19.37%
EPS Next 2Y16.51%
EPS Next 3Y14.34%
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 3Y5.59%
Revenue Next 5Y4.08%
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%