BANK OF MONTREAL (BMO.CA) Stock Fundamental Analysis
TSX:BMO - Toronto Stock Exchange - CA0636711016 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to BMO. BMO was compared to 30 industry peers in the Banks industry. Both the profitability and financial health of BMO have multiple concerns. BMO has a correct valuation and a medium growth rate. 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.
Each year in the past 5 years BMO has been profitable.
BMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BMO (0.53%) is worse than 66.67% of its industry peers.
BMO's Return On Equity of 8.85% is in line compared to the rest of the industry. BMO outperforms 43.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 8.85% | ||
| 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 has a Profit Margin of 22.54%. This is in the lower half of the industry: BMO underperforms 66.67% of its industry peers.
BMO's Profit Margin has been stable 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) | 22.54% | ||
| 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.
The number of shares outstanding for BMO has been increased compared to 1 year ago.
Compared to 5 years ago, BMO has more shares outstanding
The debt/assets ratio for BMO has remained at the same level compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of BMO is 15.82, which is on the high side as it means it would take BMO, 15.82 years of fcf income to pay off all of its debts.
BMO has a Debt to FCF ratio of 15.82. This is in the lower half of the industry: BMO underperforms 76.67% of its industry peers.
A Debt/Equity ratio of 2.47 is on the high side and indicates that BMO has dependencies on debt financing.
BMO has a Debt to Equity ratio (2.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | 15.82 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.42%
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 -8.21% 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.
The Revenue has been growing slightly by 6.14% in the past year.
BMO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.17% yearly.
EPS 1Y (TTM)-8.21%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%18.75%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%18.04%
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 3.81% on average per year.
EPS Next Y19.5%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
EPS Next 5Y9.12%
Revenue Next Year11.04%
Revenue Next 2Y7.41%
Revenue Next 3Y5.48%
Revenue Next 5Y3.81%
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.
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
Based on the Price/Earnings ratio of 12.95, the valuation of BMO can be described as correct.
96.67% 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 (28.79), we can say BMO is valued rather cheaply.
BMO is valuated reasonably with a Price/Forward Earnings ratio of 9.90.
BMO's Price/Forward Earnings ratio is rather expensive when compared to the industry. BMO is more expensive than 93.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, BMO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 9.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMO indicates a rather expensive valuation: BMO more expensive than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.8 | ||
| 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.
BMO's earnings are expected to grow with 14.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)23.75
EPS Next 2Y17.2%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.92%, BMO is a good candidate for dividend investing.
BMO's Dividend Yield is comparable with the industry average which is at 4.49.
Compared to an average S&P500 Dividend Yield of 2.47, BMO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
5.2 History
The dividend of BMO has a limited annual growth rate of 4.22%.
BMO has been paying a dividend for at least 10 years, so it has a reliable track record.
BMO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.22%
Div Incr Years3
Div Non Decr Years34
5.3 Sustainability
56.48% of the earnings are spent on dividend by BMO. This is a bit on the high side, but may be sustainable.
BMO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP56.48%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
TSX:BMO (4/25/2025, 7:00:00 PM)
131.72
-0.6 (-0.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.83%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap95.37B
Analysts70.53
Price Target156.88 (19.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
Yearly Dividend5.29
Dividend Growth(5Y)4.22%
DP56.48%
Div Incr Years3
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.61%
Min EPS beat(2)-21.82%
Max EPS beat(2)25.04%
EPS beat(4)1
Avg EPS beat(4)-2.38%
Min EPS beat(4)-21.82%
Max EPS beat(4)25.04%
EPS beat(8)1
Avg EPS beat(8)-6.18%
EPS beat(12)2
Avg EPS beat(12)-4.45%
EPS beat(16)6
Avg EPS beat(16)-0.33%
Revenue beat(2)1
Avg Revenue beat(2)3.25%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)7.39%
Revenue beat(4)1
Avg Revenue beat(4)0.94%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)7.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.63%
Revenue beat(12)4
Avg Revenue beat(12)4.87%
Revenue beat(16)6
Avg Revenue beat(16)5.61%
PT rev (1m)0.16%
PT rev (3m)8.48%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)8.93%
EPS NY rev (1m)5.58%
EPS NY rev (3m)7.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 9.9 | ||
| P/S | 2.77 | ||
| P/FCF | 6.8 | ||
| P/OCF | 6.12 | ||
| P/B | 1.09 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.17
EY7.72%
EPS(NY)13.31
Fwd EY10.1%
FCF(TTM)19.38
FCFY14.72%
OCF(TTM)21.54
OCFY16.35%
SpS47.49
BVpS120.93
TBVpS89.87
PEG (NY)0.66
PEG (5Y)23.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 8.85% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.54% | ||
| GM | N/A | ||
| FCFM | 40.81% |
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 Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | 15.82 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 73.39% | ||
| Cap/Sales | 4.53% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 181.07% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC15.42%
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)-8.21%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%18.75%
EPS Next Y19.5%
EPS Next 2Y17.2%
EPS Next 3Y14.33%
EPS Next 5Y9.12%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%18.04%
Revenue Next Year11.04%
Revenue Next 2Y7.41%
Revenue Next 3Y5.48%
Revenue Next 5Y3.81%
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-69.98%
FCF growth 3Y-13.92%
FCF growth 5Y-0.51%
OCF growth 1Y-67.71%
OCF growth 3Y-12.98%
OCF growth 5Y-0.19%