BANK OF MONTREAL (BMO.CA)
CA0636711016 - Common Stock
We assign a fundamental rating of 3 out of 10 to BMO. BMO was compared to 38 industry peers in the Banks industry. Both the profitability and financial health of BMO have multiple concerns. BMO is valued correctly, but it does not seem to be growing. Finally BMO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BMO had positive earnings in the past year.
In the past year BMO had a positive cash flow from operations.
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
With a Return On Assets value of 0.45%, BMO is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
With a Return On Equity value of 7.56%, BMO is not doing good in the industry: 65.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 7.56% | ||
| ROIC | N/A |
ROA(3y)0.74%
ROA(5y)0.68%
ROE(3y)12.36%
ROE(5y)11.3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 19.47%, BMO is doing worse than 73.68% of the companies in the same industry.
In the last couple of years the Profit Margin of BMO has declined.
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) | 19.47% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-12.43%
PM growth 5Y-10.88%
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 an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of BMO is 8.04, which is on the high side as it means it would take BMO, 8.04 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 8.04, BMO is doing good in the industry, outperforming 76.32% of the companies in the same industry.
A Debt/Equity ratio of 2.48 is on the high side and indicates that BMO has dependencies on debt financing.
BMO has a Debt to Equity ratio (2.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | 8.04 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.83%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
BMO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.45%.
Measured over the past 5 years, BMO shows a small growth in Earnings Per Share. The EPS has been growing by 5.46% on average per year.
Looking at the last year, BMO shows a decrease in Revenue. The Revenue has decreased by -3.62% in the last year.
Measured over the past years, BMO shows a small growth in Revenue. The Revenue has been growing by 6.38% on average per year.
EPS 1Y (TTM)-11.45%
EPS 3Y15.05%
EPS 5Y5.46%
EPS Q2Q%-5.04%
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y7.4%
Revenue growth 5Y6.38%
Sales Q2Q%1.69%
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 4.30% on average per year.
BMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.82% yearly.
EPS Next Y-8.32%
EPS Next 2Y-0.25%
EPS Next 3Y4.3%
EPS Next 5YN/A
Revenue Next Year2.35%
Revenue Next 2Y3.68%
Revenue Next 3Y4.79%
Revenue Next 5Y3.82%
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
Based on the Price/Earnings ratio of 10.97, the valuation of BMO can be described as reasonable.
Based on the Price/Earnings ratio, BMO is valued expensively inside the industry as 81.58% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 30.52, BMO is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.96, the valuation of BMO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BMO is valued more expensive than 81.58% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.99. BMO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMO indicates a somewhat cheap valuation: BMO is cheaper than 78.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.24 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.01
EPS Next 2Y-0.25%
EPS Next 3Y4.3%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 5.36%, which is a nice return.
BMO's Dividend Yield is rather good when compared to the industry average which is at 3.96. BMO pays more dividend than 84.21% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.26, BMO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.36% |
5.2 History
The dividend of BMO decreases each year by -0.73%.
BMO has paid a dividend for at least 10 years, which is a reliable track record.
BMO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.73%
Div Incr Years2
Div Non Decr Years33
5.3 Sustainability
BMO pays out 52.89% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP52.89%
EPS Next 2Y-0.25%
EPS Next 3Y4.3%
BANK OF MONTREAL
TSX:BMO (9/13/2024, 7:00:00 PM)
116.29
+0.69 (+0.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap84.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.96 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 7.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 19.47% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-11.45%
EPS 3Y15.05%
EPS 5Y
EPS Q2Q%
EPS Next Y-8.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y7.4%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y