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BANK OF MONTREAL (BMO) Stock Fundamental Analysis

NYSE:BMO - New York Stock Exchange, Inc. - CA0636711016 - Common Stock - Currency: USD

93.43  +0.59 (+0.64%)

After market: 93.43 0 (0%)

Fundamental Rating

3

Overall BMO gets a fundamental rating of 3 out of 10. We evaluated BMO against 398 industry peers in the Banks industry. BMO may be in some trouble as it scores bad on both profitability and health. BMO is not valued too expensively and it also shows a decent growth rate. BMO also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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3

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.
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.
BMO Yearly Net Income VS EBIT VS OCF VS FCFBMO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B 40B 50B

1.2 Ratios

BMO has a worse Return On Assets (0.53%) than 72.11% of its industry peers.
The Return On Equity of BMO (8.85%) is comparable to the rest of the industry.
Industry RankSector 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
BMO Yearly ROA, ROE, ROICBMO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

The Profit Margin of BMO (22.54%) is comparable to the rest of the industry.
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 RankSector 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
BMO Yearly Profit, Operating, Gross MarginsBMO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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0

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
BMO has about the same debt/assets ratio as last year.
BMO Yearly Shares OutstandingBMO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
BMO Yearly Total Debt VS Total AssetsBMO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500B 1T

2.2 Solvency

BMO has a debt to FCF ratio of 15.82. This is a negative value and a sign of low solvency as BMO would need 15.82 years to pay back of all of its debts.
BMO's Debt to FCF ratio of 15.82 is on the low side compared to the rest of the industry. BMO is outperformed by 78.64% 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's Debt to Equity ratio of 2.47 is on the low side compared to the rest of the industry. BMO is outperformed by 92.21% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.47
Debt/FCF 15.82
Altman-Z N/A
ROIC/WACCN/A
WACC15.57%
BMO Yearly LT Debt VS Equity VS FCFBMO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B 80B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
BMO Yearly Current Assets VS Current LiabilitesBMO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B

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4

3. Growth

3.1 Past

The earnings per share for BMO have decreased by -8.21% in the last year.
The Earnings Per Share has been growing slightly by 0.55% on average over the past years.
BMO shows a small growth in Revenue. In the last year, the Revenue has grown by 6.14%.
The Revenue has been growing slightly by 5.17% on average over the past years.
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

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.
BMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.81% yearly.
EPS Next Y19.62%
EPS Next 2Y17.68%
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

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 decreasing.
BMO Yearly Revenue VS EstimatesBMO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B
BMO Yearly EPS VS EstimatesBMO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.76 indicates a correct valuation of BMO.
61.56% of the companies in the same industry are cheaper than BMO, based on the Price/Earnings ratio.
BMO is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.67, the valuation of BMO can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of BMO to the average of the S&P500 Index (21.08), we can say BMO is valued rather cheaply.
Industry RankSector Rank
PE 12.76
Fwd PE 9.67
BMO Price Earnings VS Forward Price EarningsBMO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMO indicates a rather cheap valuation: BMO is cheaper than 84.17% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 6.72
EV/EBITDA N/A
BMO Per share dataBMO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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 14.33% in the coming years.
PEG (NY)0.65
PEG (5Y)23.4
EPS Next 2Y17.68%
EPS Next 3Y14.33%

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7

5. Dividend

5.1 Amount

BMO has a Yearly Dividend Yield of 5.11%, which is a nice return.
BMO's Dividend Yield is rather good when compared to the industry average which is at 3.78. BMO pays more dividend than 82.16% of the companies in the same industry.
BMO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.57.
Industry RankSector Rank
Dividend Yield 5.11%

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.
The dividend of BMO decreased recently.
Dividend Growth(5Y)4.22%
Div Incr Years1
Div Non Decr Years1
BMO Yearly Dividends per shareBMO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

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 2Y17.68%
EPS Next 3Y14.33%
BMO Yearly Income VS Free CF VS DividendBMO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B 40B
BMO Dividend Payout.BMO Dividend Payout, showing the Payout Ratio.BMO Dividend Payout.PayoutRetained Earnings

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BANK OF MONTREAL

NYSE:BMO (4/17/2025, 8:04:25 PM)

After market: 93.43 0 (0%)

93.43

+0.59 (+0.64%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)02-25 2025-02-25/bmo
Earnings (Next)05-27 2025-05-27/bmo
Inst Owners55.83%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change0%
Market Cap67.92B
Analysts70.53
Price Target109.03 (16.7%)
Short Float %0.71%
Short Ratio8.25
Dividend
Industry RankSector Rank
Dividend Yield 5.11%
Yearly Dividend3.82
Dividend Growth(5Y)4.22%
DP56.48%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-29 2025-04-29 (1.59)
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)0.71%
PT rev (3m)8.43%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)8.93%
EPS NY rev (1m)5.69%
EPS NY rev (3m)7.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.94%
Valuation
Industry RankSector Rank
PE 12.76
Fwd PE 9.67
P/S 2.74
P/FCF 6.72
P/OCF 6.05
P/B 1.08
P/tB 1.45
EV/EBITDA N/A
EPS(TTM)7.32
EY7.83%
EPS(NY)9.66
Fwd EY10.34%
FCF(TTM)13.9
FCFY14.88%
OCF(TTM)15.45
OCFY16.53%
SpS34.07
BVpS86.74
TBVpS64.46
PEG (NY)0.65
PEG (5Y)23.4
Profitability
Industry RankSector 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 RankSector 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
WACC15.57%
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 Y19.62%
EPS Next 2Y17.68%
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%