BANK OF MONTREAL (BMO)
CA0636711016 - Common Stock
Taking everything into account, BMO scores 4 out of 10 in our fundamental rating. BMO was compared to 406 industry peers in the Banks industry. The financial health of BMO is average, but there are quite some concerns on its profitability. BMO is valued correctly, but it does not seem to be growing.
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.
BMO had positive earnings in 4 of the past 5 years.
BMO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.45%, BMO is doing worse than 75.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.56%, BMO is in line with its industry, outperforming 45.54% of the companies in the same industry.
| 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
BMO's Profit Margin of 19.47% is on the low side compared to the rest of the industry. BMO is outperformed by 62.13% of its industry peers.
BMO's Profit Margin has declined in the last couple of years.
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) | 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.
BMO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
BMO has a debt to FCF ratio of 8.04. This is a slightly negative value and a sign of low solvency as BMO would need 8.04 years to pay back of all of its debts.
BMO has a worse Debt to FCF ratio (8.04) than 68.32% of its industry peers.
BMO has a Debt/Equity ratio of 2.48. This is a high value indicating a heavy dependency on external financing.
BMO has a worse Debt to Equity ratio (2.48) than 93.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | 8.04 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.14%
2.3 Liquidity
BMO has a Current Ratio of 2.15. This indicates that BMO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.15, BMO belongs to the best of the industry, outperforming 99.75% of the companies in the same industry.
A Quick Ratio of 2.15 indicates that BMO has no problem at all paying its short term obligations.
BMO has a better Quick ratio (2.15) than 99.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
The earnings per share for BMO have decreased strongly by -17.00% in the last year.
The Earnings Per Share has been growing slightly by 0.66% on average over the past years.
EPS 1Y (TTM)-17%
EPS 3Y-9.07%
EPS 5Y0.66%
EPS Q2Q%-30.46%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%16.09%
3.2 Future
The Earnings Per Share is expected to grow by 14.31% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.35% on average over the next years.
EPS Next Y11.03%
EPS Next 2Y14.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.66%
Revenue Next 2Y5.58%
Revenue Next 3Y4.6%
Revenue Next 5Y4.35%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.24, the valuation of BMO can be described as correct.
BMO's Price/Earnings ratio is in line with the industry average.
BMO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.82, the valuation of BMO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMO is on the same level as its industry peers.
BMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 12.82 |
4.2 Price Multiples
BMO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMO is cheaper than 94.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.86 | ||
| 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.
A more expensive valuation may be justified as BMO's earnings are expected to grow with 14.31% in the coming years.
PEG (NY)1.29
PEG (5Y)21.66
EPS Next 2Y14.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.50%, BMO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.02, BMO pays a better dividend. On top of this BMO pays more dividend than 88.61% of the companies listed in the same industry.
BMO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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 decreased its dividend recently.
Dividend Growth(5Y)-0.73%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
52.89% of the earnings are spent on dividend by BMO. This is a bit on the high side, but may be sustainable.
DP52.89%
EPS Next 2Y14.31%
EPS Next 3YN/A
BANK OF MONTREAL
NYSE:BMO (12/20/2024, 8:04:00 PM)
After market: 96.54 0 (0%)96.54
-0.08 (-0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners46.82%
Inst Owner Change16.09%
Ins Owners0%
Ins Owner Change0%
Market Cap70.44B
Analysts68
Price Target97.42 (0.91%)
Short Float %0.83%
Short Ratio6.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
Dividend Growth(5Y)-0.73%
DP52.89%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.38%
Min EPS beat(2)-7.4%
Max EPS beat(2)-5.35%
EPS beat(4)0
Avg EPS beat(4)-7.81%
Min EPS beat(4)-16.05%
Max EPS beat(4)-2.45%
EPS beat(8)1
Avg EPS beat(8)-6.73%
EPS beat(12)3
Avg EPS beat(12)-3.04%
EPS beat(16)7
Avg EPS beat(16)3.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)-1.05%
Revenue beat(4)0
Avg Revenue beat(4)-3.58%
Min Revenue beat(4)-7.29%
Max Revenue beat(4)-1.05%
Revenue beat(8)2
Avg Revenue beat(8)3.07%
Revenue beat(12)4
Avg Revenue beat(12)5.52%
Revenue beat(16)7
Avg Revenue beat(16)6.25%
PT rev (1m)9.35%
PT rev (3m)2.4%
EPS NQ rev (1m)-3.33%
EPS NQ rev (3m)-5.39%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-4.26%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 12.82 | ||
| P/S | 3.14 | ||
| P/FCF | 3.86 | ||
| P/OCF | 3.63 | ||
| P/B | 1.22 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.78
EY7.02%
EPS(NY)7.53
Fwd EY7.8%
FCF(TTM)25.01
FCFY25.91%
OCF(TTM)26.61
OCFY27.56%
SpS30.72
BVpS79.13
TBVpS58.52
PEG (NY)1.29
PEG (5Y)21.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 7.56% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 19.47% | ||
| GM | N/A | ||
| FCFM | 81.41% |
ROA(3y)0.74%
ROA(5y)0.68%
ROE(3y)12.36%
ROE(5y)11.3%
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-12.43%
PM growth 5Y-10.88%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | 8.04 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 76.58% | ||
| Cap/Sales | 5.19% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 418.19% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z | N/A |
F-Score3
WACC12.14%
ROIC/WACCN/A
Cap/Depr(3y)82.24%
Cap/Depr(5y)86.68%
Cap/Sales(3y)4.43%
Cap/Sales(5y)4.36%
Profit Quality(3y)265.33%
Profit Quality(5y)466.16%
High Growth Momentum
Growth
EPS 1Y (TTM)-17%
EPS 3Y-9.07%
EPS 5Y0.66%
EPS Q2Q%-30.46%
EPS Next Y11.03%
EPS Next 2Y14.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%16.09%
Revenue Next Year5.66%
Revenue Next 2Y5.58%
Revenue Next 3Y4.6%
Revenue Next 5Y4.35%
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 1Y802.92%
FCF growth 3Y-45.84%
FCF growth 5Y-14.21%
OCF growth 1Y1228.41%
OCF growth 3Y-42.65%
OCF growth 5Y-11.74%