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 31 industry peers in the Banks industry. BMO may be in some trouble as it scores bad on both profitability and health. BMO is quite expensive at the moment. It does show a decent growth rate. BMO also has an excellent dividend rating.
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.
In the past 5 years BMO always reported a positive cash flow from operatings.
1.2 Ratios
BMO has a worse Return On Assets (0.49%) than 70.97% of its industry peers.
The Return On Equity of BMO (8.23%) is worse than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 8.23% | ||
| 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 21.14%. This is in the lower half of the industry: BMO underperforms 70.97% of its industry peers.
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) | 21.14% | ||
| 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 7.08, which is on the high side as it means it would take BMO, 7.08 years of fcf income to pay off all of its debts.
BMO has a better Debt to FCF ratio (7.08) than 70.97% of its industry peers.
A Debt/Equity ratio of 2.25 is on the high side and indicates that BMO has dependencies on debt financing.
BMO has a Debt to Equity ratio (2.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | 7.08 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.03%
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 strongly by -17.46% 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 5.12% in the past year.
The Revenue has been growing slightly by 5.17% on average over the past years.
EPS 1Y (TTM)-17.46%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%-32.38%
Revenue 1Y (TTM)5.12%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%5.36%
3.2 Future
The Earnings Per Share is expected to grow by 9.12% on average over the next years. This is quite good.
Based on estimates for the next years, BMO will show a small growth in Revenue. The Revenue will grow by 4.74% on average per year.
EPS Next Y13.19%
EPS Next 2Y16.15%
EPS Next 3Y13.59%
EPS Next 5Y9.12%
Revenue Next Year6.67%
Revenue Next 2Y5.98%
Revenue Next 3Y4.99%
Revenue Next 5Y4.74%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.75, the valuation of BMO can be described as correct.
Based on the Price/Earnings ratio, BMO is valued expensively inside the industry as 96.77% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of BMO to the average of the S&P500 Index (29.63), we can say BMO is valued rather cheaply.
The Price/Forward Earnings ratio is 13.03, which indicates a correct valuation of BMO.
Based on the Price/Forward Earnings ratio, BMO is valued expensively inside the industry as 96.77% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of BMO to the average of the S&P500 Index (22.68), we can say BMO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 13.03 |
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 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.79 | ||
| 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.
BMO's earnings are expected to grow with 13.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.12
PEG (5Y)27.05
EPS Next 2Y16.15%
EPS Next 3Y13.59%
5. Dividend
5.1 Amount
BMO has a Yearly Dividend Yield of 4.45%, which is a nice return.
BMO's Dividend Yield is a higher than the industry average which is at 4.02.
Compared to an average S&P500 Dividend Yield of 2.27, BMO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.22%
Div Incr Years3
Div Non Decr Years34
5.3 Sustainability
55.40% of the earnings are spent on dividend by BMO. This is a bit on the high side, but may be sustainable.
The dividend of BMO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.4%
EPS Next 2Y16.15%
EPS Next 3Y13.59%
TSX:BMO (2/21/2025, 7:00:00 PM)
142.96
-0.03 (-0.02%)
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 Cap104.20B
Analysts72.22
Price Target148.98 (4.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
Yearly Dividend5.29
Dividend Growth(5Y)4.22%
DP55.4%
Div Incr Years3
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.58%
Min EPS beat(2)-21.82%
Max EPS beat(2)-5.35%
EPS beat(4)0
Avg EPS beat(4)-12.66%
Min EPS beat(4)-21.82%
Max EPS beat(4)-5.35%
EPS beat(8)1
Avg EPS beat(8)-9.21%
EPS beat(12)2
Avg EPS beat(12)-5.08%
EPS beat(16)6
Avg EPS beat(16)0.65%
Revenue beat(2)0
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-1.05%
Max Revenue beat(2)-0.89%
Revenue beat(4)0
Avg Revenue beat(4)-2.73%
Min Revenue beat(4)-7.29%
Max Revenue beat(4)-0.89%
Revenue beat(8)1
Avg Revenue beat(8)-3.26%
Revenue beat(12)4
Avg Revenue beat(12)5.55%
Revenue beat(16)6
Avg Revenue beat(16)6.09%
PT rev (1m)3.02%
PT rev (3m)21.12%
EPS NQ rev (1m)-2.5%
EPS NQ rev (3m)-13.75%
EPS NY rev (1m)1.38%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-4.14%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 13.03 | ||
| P/S | 3.18 | ||
| P/FCF | 3.79 | ||
| P/OCF | 3.59 | ||
| P/B | 1.24 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | N/A |
EPS(TTM)9.69
EY6.78%
EPS(NY)10.97
Fwd EY7.67%
FCF(TTM)37.68
FCFY26.36%
OCF(TTM)39.83
OCFY27.86%
SpS44.99
BVpS115.59
TBVpS85.82
PEG (NY)1.12
PEG (5Y)27.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 8.23% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 21.14% | ||
| GM | N/A | ||
| FCFM | 83.75% |
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 | 2.25 | ||
| Debt/FCF | 7.08 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 74.12% | ||
| Cap/Sales | 4.77% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 396.22% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC15.03%
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)-17.46%
EPS 3Y-9.24%
EPS 5Y0.55%
EPS Q2Q%-32.38%
EPS Next Y13.19%
EPS Next 2Y16.15%
EPS Next 3Y13.59%
EPS Next 5Y9.12%
Revenue 1Y (TTM)5.12%
Revenue growth 3Y6.45%
Revenue growth 5Y5.17%
Sales Q2Q%5.36%
Revenue Next Year6.67%
Revenue Next 2Y5.98%
Revenue Next 3Y4.99%
Revenue Next 5Y4.74%
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 1Y247.06%
FCF growth 3Y-13.92%
FCF growth 5Y-0.51%
OCF growth 1Y202.68%
OCF growth 3Y-12.98%
OCF growth 5Y-0.19%