BANK OF MONTREAL (BMO) Stock Fundamental Analysis
NYSE:BMO - New York Stock Exchange, Inc. - CA0636711016 - Common Stock - Currency: USD
BMO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 405 industry peers in the Banks industry. BMO has a bad profitability rating. Also its financial health evaluation is rather negative. BMO has a decent growth rate and is not valued too expensively. 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.
Each year in the past 5 years BMO has been profitable.
Each year in the past 5 years BMO had a positive operating cash flow.
1.2 Ratios
BMO's Return On Assets of 0.49% is on the low side compared to the rest of the industry. BMO is outperformed by 73.68% of its industry peers.
Looking at the Return On Equity, with a value of 8.23%, BMO is in line with its industry, outperforming 50.63% of the companies in the same industry.
| 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 (21.14%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BMO has remained more or less at the same level.
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) | 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.
BMO has more shares outstanding than it did 5 years ago.
BMO has about the same debt/assets ratio as last year.
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.
With a Debt to FCF ratio value of 7.08, BMO is not doing good in the industry: 68.67% of the companies in the same industry are doing better.
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 of 2.25. This is amonst the worse of the industry: BMO underperforms 92.48% of its industry peers.
| 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
BMO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.46%.
Measured over the past 5 years, BMO shows a small growth in Earnings Per Share. The EPS has been growing by 0.55% on average per year.
BMO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.12%.
Measured over the past years, BMO shows a small growth in Revenue. The Revenue has been growing by 5.17% on average per year.
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
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.
The Revenue is expected to grow by 4.74% on average over the next years.
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
The Price/Earnings ratio is 14.71, which indicates a correct valuation of BMO.
62.41% 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 (29.63), we can say BMO is valued rather cheaply.
The Price/Forward Earnings ratio is 13.00, which indicates a correct valuation of BMO.
61.65% of the companies in the same industry are cheaper than BMO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. BMO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13 |
4.2 Price Multiples
BMO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMO is cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.78 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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)26.97
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.
Compared to an average industry Dividend Yield of 3.18, BMO pays a better dividend. On top of this BMO pays more dividend than 84.46% of the companies listed in the same industry.
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.
The dividend of BMO decreased recently.
Dividend Growth(5Y)4.22%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BMO pays out 55.40% of its income as dividend. 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%
100.46
-0.46 (-0.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners55.83%
Inst Owner Change-81.66%
Ins Owners0.03%
Ins Owner Change0%
Market Cap73.22B
Analysts72.22
Price Target102.58 (2.11%)
Short Float %1.5%
Short Ratio16.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
Yearly Dividend5.29
Dividend Growth(5Y)4.22%
DP55.4%
Div Incr Years1
Div Non Decr Years1
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)2.01%
PT rev (3m)10.08%
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 | 14.71 | ||
| Fwd PE | 13 | ||
| P/S | 3.17 | ||
| P/FCF | 3.78 | ||
| P/OCF | 3.58 | ||
| P/B | 1.23 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.83
EY6.8%
EPS(NY)7.73
Fwd EY7.69%
FCF(TTM)26.55
FCFY26.42%
OCF(TTM)28.06
OCFY27.93%
SpS31.7
BVpS81.43
TBVpS60.45
PEG (NY)1.12
PEG (5Y)26.97
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%