BANK OF MONTREAL (BMO)
CA0636711016 - Common Stock
Overall BMO gets a fundamental rating of 3 out of 10. We evaluated BMO against 404 industry peers in the Banks industry. The financial health of BMO is average, but there are quite some concerns on its profitability. BMO has a valuation in line with the averages, 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.
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
Looking at the Return On Assets, with a value of 0.45%, BMO is doing worse than 76.81% of the companies in the same industry.
The Return On Equity of BMO (7.56%) is comparable to the rest of the 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 63.84% of its industry peers.
In the last couple of years the Profit Margin of BMO has declined.
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.
Compared to 1 year ago, BMO has more shares outstanding
Compared to 5 years ago, BMO has more shares outstanding
BMO has a better debt/assets ratio than last year.
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 Debt to FCF ratio value of 8.04, BMO is not doing good in the industry: 75.31% of the companies in the same industry are doing better.
BMO has a Debt/Equity ratio of 2.48. This is a high value indicating a heavy dependency on external financing.
BMO's Debt to Equity ratio of 2.48 is on the low side compared to the rest of the industry. BMO is outperformed by 94.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | 8.04 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.48%
2.3 Liquidity
A Current Ratio of 2.15 indicates that BMO has no problem at all paying its short term obligations.
BMO has a Current ratio of 2.15. This is amongst the best in the industry. BMO outperforms 99.75% of its industry peers.
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 -11.45% in the last year.
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.
The Revenue has decreased by -3.62% in the past year.
The Revenue has been growing slightly by 6.38% on average over the past years.
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
The Earnings Per Share is expected to grow by 4.30% on average over the next years.
The Revenue is expected to grow by 3.82% on average over the next years.
EPS Next Y-8.32%
EPS Next 2Y-0.25%
EPS Next 3Y4.3%
EPS Next 5YN/A
Revenue Next Year2.44%
Revenue Next 2Y4.09%
Revenue Next 3Y5.02%
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
A Price/Earnings ratio of 12.06 indicates a correct valuation of BMO.
BMO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 30.69, BMO is valued rather cheaply.
BMO is valuated reasonably with a Price/Forward Earnings ratio of 10.94.
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 cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 10.94 |
4.2 Price Multiples
BMO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMO is cheaper than 95.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.56 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.21
EPS Next 2Y-0.25%
EPS Next 3Y4.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.79%, BMO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.24, BMO pays a better dividend. On top of this BMO pays more dividend than 87.78% 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 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
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.
Dividend Growth(5Y)-0.73%
Div Incr Years0
Div Non Decr Years0
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
NYSE:BMO (10/30/2024, 8:04:00 PM)
After market: 91.89 0 (0%)91.89
-1.11 (-1.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap67.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
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 | 12.06 | ||
| Fwd PE | 10.94 | ||
| 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)2.21
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 | 2.15 | ||
| Quick Ratio | 2.15 | ||
| 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