Loading...

Bank of Montreal

TSX:BMO
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BMO
TSX
CA$63B
Market Cap
  1. Home
  2. CA
  3. Banks
Company description

Bank of Montreal provides diversified financial services primarily in North America. The last earnings update was 78 days ago. More info.


Add to Portfolio Compare Print
BMO Share Price and Events
7 Day Returns
-0.4%
TSX:BMO
-0.7%
CA Banks
-1.2%
CA Market
1 Year Returns
1%
TSX:BMO
-4.2%
CA Banks
-0.1%
CA Market
BMO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bank of Montreal (BMO) -0.4% -3.8% -5.6% 1% 33.3% 34.6%
CA Banks -0.7% -2.6% -6.4% -4.2% 28.7% 32.6%
CA Market -1.2% -1.4% -3.9% -0.1% 57.6% 58.8%
1 Year Return vs Industry and Market
  • BMO outperformed the Banks industry which returned -4.2% over the past year.
  • BMO outperformed the Market in Canada which returned -0.1% over the past year.
Price Volatility
BMO
Industry
5yr Volatility vs Market

BMO Value

 Is Bank of Montreal undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bank of Montreal to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bank of Montreal.

TSX:BMO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 10 analysts.
= Stable Book Value * Return on Equity
= CA$72.73 * 13.9%
CA$10.13
Book Value of Equity per Share Weighted future Book Value estimates from 9 analysts. CA$72.73
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year CA Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:BMO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 7.7%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.43
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.433 (1 + (1- 26.5%) (216.36%))
0.993
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.34% + (0.993 * 7.66%)
9.95%

Discounted Cash Flow Calculation for TSX:BMO using Excess Returns Model Model

The calculations below outline how an intrinsic value for Bank of Montreal is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

TSX:BMO Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.9% – 9.95%) * CA$72.73)
CA$2.90
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CA$2.90 / (9.95% - 2.34%)
CA$38.07
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CA$72.73 + CA$38.07
CA$110.79
TSX:BMO Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$110.79
Current discount Discount to share price of CA$98.97
= -1 x (CA$98.97 - CA$110.79) / CA$110.79
10.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Bank of Montreal is available for.
Intrinsic value
11%
Share price is CA$98.97 vs Future cash flow value of CA$110.79
Current Discount Checks
For Bank of Montreal to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Bank of Montreal's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Bank of Montreal's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bank of Montreal's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bank of Montreal's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:BMO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-07-31) in CAD CA$7.43
TSX:BMO Share Price ** TSX (2018-11-13) in CAD CA$98.97
Canada Banks Industry PE Ratio Median Figure of 9 Publicly-Listed Banks Companies 11.33x
Canada Market PE Ratio Median Figure of 543 Publicly-Listed Companies 14.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bank of Montreal.

TSX:BMO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:BMO Share Price ÷ EPS (both in CAD)

= 98.97 ÷ 7.43

13.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of Montreal is overvalued based on earnings compared to the CA Banks industry average.
  • Bank of Montreal is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Bank of Montreal's expected growth come at a high price?
Raw Data
TSX:BMO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
13%per year
Canada Banks Industry PEG Ratio Median Figure of 8 Publicly-Listed Banks Companies 1.71x
Canada Market PEG Ratio Median Figure of 259 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

TSX:BMO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.32x ÷ 13%

1.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of Montreal is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Bank of Montreal's assets?
Raw Data
TSX:BMO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-07-31) in CAD CA$63.31
TSX:BMO Share Price * TSX (2018-11-13) in CAD CA$98.97
Canada Banks Industry PB Ratio Median Figure of 9 Publicly-Listed Banks Companies 1.56x
Canada Market PB Ratio Median Figure of 2,254 Publicly-Listed Companies 1.49x
TSX:BMO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:BMO Share Price ÷ Book Value per Share (both in CAD)

= 98.97 ÷ 63.31

1.56x

* Primary Listing of Bank of Montreal.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of Montreal is overvalued based on assets compared to the CA Banks industry average.
X
Value checks
We assess Bank of Montreal's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Bank of Montreal has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BMO Future Performance

 How is Bank of Montreal expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bank of Montreal expected to grow at an attractive rate?
  • Bank of Montreal's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Bank of Montreal's earnings growth is positive but not above the Canada market average.
  • Bank of Montreal's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:BMO Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:BMO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 13%
TSX:BMO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 4.4%
Canada Banks Industry Earnings Growth Rate Market Cap Weighted Average 7.5%
Canada Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
Canada Market Earnings Growth Rate Market Cap Weighted Average 16.1%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:BMO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:BMO Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-10-31 24,073 4
2019-10-31 22,901 5,986 7
2018-10-31 21,958 5,407 6
TSX:BMO Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-07-31 22,053 -12,998 4,793
2018-04-30 21,752 -12,386 4,645
2018-01-31 21,785 -6,946 4,650
2017-10-31 21,486 -13,186 5,164
2017-07-31 21,165 -15,964 5,295
2017-04-30 21,208 -21,208 5,162
2017-01-31 20,618 -24,899 4,895
2016-10-31 20,272 -25,563 4,472
2016-07-31 20,022 -19,241 4,338
2016-04-30 19,312 -9,604 4,295
2016-01-31 18,777 -13,770 4,319
2015-10-31 18,777 -5,634 4,253

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bank of Montreal's earnings are expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
  • Bank of Montreal's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:BMO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Bank of Montreal Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:BMO Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-10-31 10.29 10.62 9.95 2.00
2019-10-31 9.47 10.23 8.76 8.00
2018-10-31 7.96 8.43 7.77 8.00
TSX:BMO Past Financials Data
Date (Data in CAD Millions) EPS *
2018-07-31 7.43
2018-04-30 7.17
2018-01-31 7.16
2017-10-31 7.95
2017-07-31 8.16
2017-04-30 7.98
2017-01-31 7.59
2016-10-31 6.94
2016-07-31 6.74
2016-04-30 6.68
2016-01-31 6.71
2015-10-31 6.59

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Bank of Montreal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Bank of Montreal's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bank of Montreal has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BMO Past Performance

  How has Bank of Montreal performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bank of Montreal's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Bank of Montreal's year on year earnings growth rate has been positive over the past 5 years.
  • Bank of Montreal's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Bank of Montreal's 1-year earnings growth is negative, it can't be compared to the CA Banks industry average.
Earnings and Revenue History
Bank of Montreal's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bank of Montreal Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:BMO Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-07-31 22,053.00 4,793.00 11,815.00
2018-04-30 21,752.00 4,645.00 11,753.00
2018-01-31 21,785.00 4,650.00 11,491.00
2017-10-31 21,486.00 5,164.00 11,461.00
2017-07-31 21,165.00 5,295.00 11,422.00
2017-04-30 21,208.00 5,162.00 11,253.00
2017-01-31 20,618.00 4,895.00 11,318.00
2016-10-31 20,272.00 4,472.00 11,196.00
2016-07-31 20,022.00 4,338.00 11,057.00
2016-04-30 19,312.00 4,295.00 10,984.00
2016-01-31 18,777.00 4,319.00 10,855.00
2015-10-31 18,777.00 4,253.00 10,693.00
2015-07-31 18,393.00 4,097.00 10,507.00
2015-04-30 18,332.00 4,017.00 10,329.00
2015-01-31 18,174.00 4,090.00 9,866.00
2014-10-31 17,662.00 4,157.00 9,564.00
2014-07-31 17,141.00 4,169.00 9,320.00
2014-04-30 16,460.00 4,164.00 9,118.00
2014-01-31 16,002.00 4,045.00 9,085.00
2013-10-31 16,243.00 4,010.00 8,970.00
2013-07-31 15,511.00 4,009.00 9,043.00
2013-04-30 15,228.00 3,851.00 8,979.00
2013-01-31 15,243.00 3,911.00 8,912.00
2012-10-31 15,165.00 3,946.00 8,837.00
2012-07-31 14,841.00 3,660.00 8,653.00
2012-04-30 14,199.00 3,392.00 8,473.00
2012-01-31 13,562.00 3,175.00 8,072.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bank of Montreal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bank of Montreal used its assets less efficiently than the CA Banks industry average last year based on Return on Assets.
  • Unable to establish if Bank of Montreal improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Bank of Montreal's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bank of Montreal has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BMO Health

 How is Bank of Montreal's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Bank of Montreal's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bank of Montreal Company Filings, last reported 3 months ago.

TSX:BMO Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-07-31 44,756.00 137,114.00 262,355.00
2018-04-30 43,746.00 132,744.00 252,085.00
2018-01-31 42,828.00 133,305.00 254,847.00
2017-10-31 44,354.00 143,251.00 240,721.00
2017-07-31 42,934.00 125,497.00 241,066.00
2017-04-30 44,913.00 120,641.00 244,498.00
2017-01-31 42,481.00 111,434.00 234,716.00
2016-10-31 42,328.00 135,833.00 224,431.00
2016-07-31 40,704.00 116,281.00 238,288.00
2016-04-30 39,032.00 132,121.00 243,047.00
2016-01-31 41,624.00 128,828.00 252,684.00
2015-10-31 39,913.00 128,627.00 224,209.00
2015-07-31 38,684.00 150,472.00 258,735.00
2015-04-30 36,403.00 139,729.00 232,419.00
2015-01-31 37,800.00 167,085.00 268,825.00
2014-10-31 35,404.00 113,358.00 204,090.00
2014-07-31 34,300.00 117,563.00 209,357.00
2014-04-30 32,832.00 119,257.00 203,983.00
2014-01-31 32,715.00 126,075.00 216,355.00
2013-10-31 31,179.00 100,113.00 176,613.00
2013-07-31 30,697.00 103,538.00 198,488.00
2013-04-30 30,416.00 101,122.00 220,463.00
2013-01-31 30,533.00 109,858.00 206,753.00
2012-10-31 30,090.00 138,979.00 190,414.00
2012-07-31 29,396.00 124,755.00 207,430.00
2012-04-30 28,391.00 117,983.00 201,572.00
2012-01-31 28,530.00 118,387.00 219,001.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Bank of Montreal has an acceptable proportion of non-loan assets held.
  • Bank of Montreal's liabilities are made up of primarily low risk sources of funding.
  • Loans at Bank of Montreal are broadly funded by customer deposits.
  • Bank of Montreal's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Bank of Montreal has a low allowance for bad loans.
  • Bank of Montreal has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Bank of Montreal's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bank of Montreal has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BMO Dividends

 What is Bank of Montreal's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.88%
Current annual income from Bank of Montreal dividends. Estimated to be 4.23% next year.
If you bought CA$2,000 of Bank of Montreal shares you are expected to receive CA$78 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bank of Montreal's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.14%).
  • Bank of Montreal's dividend is below the markets top 25% of dividend payers in Canada (5.99%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:BMO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Canada Banks Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 4.2%
Canada Market Average Dividend Yield Market Cap Weighted Average of 329 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:BMO Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-10-31 4.47 4.00
2019-10-31 4.08 11.00
2018-10-31 3.80 10.00
TSX:BMO Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2018-08-28 3.840 3.692
2018-05-30 3.840 3.725
2018-02-27 3.720 3.798
2017-12-05 3.720 3.700
2017-08-29 3.600 3.749
2017-05-24 3.600 3.843
2017-02-28 3.520 3.572
2016-12-06 3.520 3.582
2016-08-23 3.440 3.989
2016-05-25 3.440 4.131
2016-02-23 3.360 4.235
2015-12-01 3.360 4.477
2015-08-25 3.280 4.455
2015-05-27 3.280 4.446
2015-02-24 3.200 4.129
2014-12-02 3.200 4.082
2014-08-26 3.120 3.780
2014-05-28 3.120 3.937
2014-02-25 3.040 4.085
2013-12-03 3.040 4.308
2013-08-27 2.960 4.209
2013-05-29 2.960 4.731
2013-02-26 2.960 4.681
2012-12-04 2.880 4.643
2012-08-28 2.880 4.916
2012-05-23 2.800 4.963
2012-02-28 2.800 4.826
2011-12-06 2.800 4.857
2011-08-23 2.800 4.797
2011-05-25 2.800 4.646
2011-03-01 2.800 4.517
2010-12-07 2.800 4.709
2010-08-24 2.800 4.679
2010-05-26 2.800 4.604
2010-03-02 2.800 4.559
2009-11-24 2.800 5.189
2009-08-25 2.800 5.355
2009-05-26 2.800 5.813
2009-03-03 2.800 7.761
2008-11-25 2.800 8.967
2008-11-17 2.800 7.794

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Bank of Montreal's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Bank of Montreal's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bank of Montreal afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bank of Montreal has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BMO Management

 What is the CEO of Bank of Montreal's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
William White
COMPENSATION CA$8,310,251
AGE 46
TENURE AS CEO 1 years
CEO Bio

Mr. W. Darryl White has been the Chief Executive Officer of BMO Financial Group at BMO Financial Corp since November 1, 2017. He joined BMO in 1994. He has been the Chief Executive Officer of Bank of Montreal since November 1, 2017. He has been Group Head at BMO Capital Markets since November 2014. He serves as Chief Executive Officer of BMO Nesbitt Burns Inc - Manager of Global Water Solutions Fund. He served as the Chief Operating Officer of Bank of Montreal from November 1, 2016 to October 31, 2017. He served as Head of BMO Capital Markets at BMO Capital Trust II since November 1, 2014. He served as the Chief Executive Officer and Group Head at BMO Capital Markets Corp. of Bank of Montreal (a/k/a, BMO Financial Group) from November 24, 2014 to November 1, 2016. He served as Head of Global Investment and Corporate Banking at BMO Capital Markets until November 2014. He served as Head of Global Investment & Corporate Banking at BMO Capital Markets Corp at Bank of Montreal from March 31, 2012 to November 2014. He served as Global Head of Equity Capital Markets at BMO Capital Markets Corp. He served as the Head of Investment ,Deputy Head of Investment & Corporate Banking Canada and Global Head of Equity Capital Markets at Bank of Montreal since September 17, 2010 and also served as its Global Head of Equity Capital Markets. He plays an integral part in the overall management of BMO’s investment and corporate banking business in Canada, as well as the execution of operating strategy. He is responsible for senior client relationship development and management of corporate, government and institutional clients. He served as an Executive Managing Director with responsibility for coordination of the Investment & Corporate Banking efforts of BMO Capital Markets in Québec and co-Head of its Media & Communications practice. He served as Head of Investment and Corporate Banking-Montreal Office and Co-Head of Media & Communications Group at Bank of Montreal. He is advising clients with financing and mergers and acquisitions transactions for many years. He worked in the Mergers & Acquisitions, Diversified Industries and Communications & Technology Groups within Investment & Corporate Banking in Toronto. He has been a Director of Bank of Montreal since May 24, 2017. He serves as Director of BMO Nesbitt Burns Inc. He also serves on the Boards of Directors of St-Mary’s Hospital Foundation and the Montreal Canadiens. He is a past recipient of Canada’s Top 40 Under 40 Award, a Dean’s Honour List graduate of the University of Western Ontario’s Ivey Business School and a graduate of the Advanced Management Program at the Harvard Business School. He was honored by the United Way of New York City in 2016. He actively volunteers with the United Way of Greater Toronto and York Region, is a Member of its 2017 Campaign Cabinet as Sector Chair, Finance. He serves as a Director of the amalgamated network that includes St. Michael's Hospital, St. Joseph’s Health Centre and Providence Healthcare. He is also a Director of the Montreal Canadiens. He is a strong Advocate for BMO. He serves as a Member of Catalyst Canada’s Advisory Board. He is also a past Member of the Advisory Council of Women in Capital Markets. He holds a Bachelor of Commerce from the Richard Ivey School of Business at the University of Western Ontario and has completed the Advanced Management Program at the Harvard Business School. He is a past recipient of Canada’s Top 40 under 40TM Award (November 2017).

CEO Compensation
  • William's compensation has been consistent with company performance over the past year.
  • William's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Bank of Montreal management team in years:

5.5
Average Tenure
63.5
Average Age
  • The average tenure for the Bank of Montreal management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

William White

TITLE
CEO & Director
COMPENSATION
CA$8M
AGE
46
TENURE
1 yrs

Tom Flynn

TITLE
Chief Financial Officer
COMPENSATION
CA$4M
TENURE
7.7 yrs

Pat Cronin

TITLE
Chief Risk Officer
COMPENSATION
CA$8M
TENURE
7.6 yrs

Steve Tennyson

TITLE
Chief Technology & Operations Officer

Jill Homenuk

TITLE
Head of Investor Relations
TENURE
2.4 yrs

Simon Fish

TITLE
General Counsel
AGE
56
TENURE
10.5 yrs

Connie Stefankiewicz

TITLE
Chief Marketing Officer
TENURE
3.4 yrs

Richard Rudderham

TITLE
Chief Human Resources Officer

Gilles Ouellette

TITLE
Group Head of Asset Management & Vice-Chair of International
COMPENSATION
CA$4M
AGE
71
TENURE
17.5 yrs

L. Ménard

TITLE
President Emeritus of BMO Financial Group
AGE
72
TENURE
0.6 yrs
Board of Directors Tenure

Average tenure and age of the Bank of Montreal board of directors in years:

9.5
Average Tenure
64
Average Age
  • The tenure for the Bank of Montreal board of directors is about average.
Board of Directors

Rob Prichard

TITLE
Non-Executive Chairman
COMPENSATION
CA$574K
AGE
69
TENURE
6.7 yrs

William White

TITLE
CEO & Director
COMPENSATION
CA$8M
AGE
46
TENURE
1.5 yrs

Brian Tobin

TITLE
Vice-Chairman
AGE
63

Dave Casper

TITLE
U.S. CEO - BMO Financial Group

Ron Farmer

TITLE
Director
COMPENSATION
CA$295K
AGE
68
TENURE
15 yrs

Philip Orsino

TITLE
Director
COMPENSATION
CA$280K
AGE
64
TENURE
19.3 yrs

Don Wilson

TITLE
Director
COMPENSATION
CA$310K
AGE
70
TENURE
10.7 yrs

Christine Edwards

TITLE
Director
COMPENSATION
CA$285K
AGE
66
TENURE
8.3 yrs

Jan Babiak

TITLE
Director
COMPENSATION
CA$245K
AGE
60
TENURE
6.1 yrs

George Cope

TITLE
Director
COMPENSATION
CA$230K
AGE
56
TENURE
12.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Max Price (CA$) Value (CA$)
07. Sep 18 Sell Richard Rudderham Individual 04. Sep 18 04. Sep 18 -24,359 CA$106.53 CA$-2,594,964.27
X
Management checks
We assess Bank of Montreal's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bank of Montreal has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BMO News

External News
Loading...
Simply Wall St News

Should Bank of Montreal (TSE:BMO) Be Your Next Stock Pick?

Bank of Montreal (TSE:BMO) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … If you're interested in understanding beyond my high-level commentary,

Simply Wall St -

Interested In Bank of Montreal (TSE:BMO)’s Upcoming CA$0.96 Dividend? You Have 4 Days Left

On the 27 November 2018, Bank of Montreal (TSE:BMO) will be paying shareholders an upcoming dividend amount of CA$0.96 per share. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Bank of Montreal's latest financial data to analyse its dividend attributes. … Here's how I find good dividend stocks.

Simply Wall St -

Does Bank of Montreal (TSE:BMO) Have A Place In Your Portfolio?

Bank of Montreal (TSE:BMO) has pleased shareholders over the past 10 years, by paying out dividends. … The company currently pays out a dividend yield of 3.7% to shareholders, making it a relatively attractive dividend stock. … See our latest analysis for Bank of Montreal

Simply Wall St -

Should You Buy Bank of Montreal (TSE:BMO) At CA$106?

Today we're going to take a look at the well-established Bank of Montreal (TSE:BMO). … had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of CA$99.67 to CA$106.61? … Let’s take a look at Bank of Montreal’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Why These Fundamentals Make Bank of Montreal’s (TSE:BMO) More Attractive

Bank of Montreal (TSE:BMO) is a large-cap stock operating in the financial services sector with a market cap of CA$67.96b. … As major financial institutions return to health after the Global Financial Crisis, we are seeing an increase in market confidence, and understanding of, these “too-big-to-fail” banking stocks. … Following the crisis, a set of reforms termed Basel III was enforced to bolster risk management, regulation, and supervision in the financial services industry.

Simply Wall St -

Risk Factors To Consider Before Investing In Bank of Montreal (TSE:BMO)

Large banks such as Bank of Montreal (TSE:BMO), with a market capitalisation of CA$65.13b, have benefited from improving credit quality as a result of post-GFC recovery, leading to a strong growth environment. … Growth stimulates demand for loans and impacts a borrower’s ability to repay which directly affects the level of risk Bank of Montreal takes on. … It is relevant to understand a bank’s level of risky assets on its accounts as it affects the attractiveness of its stock as an investment.

Simply Wall St -

Is It Time To Sell Bank of Montreal (TSE:BMO) Based Off Its PE Ratio?

and want to begin learning the link between Bank of Montreal (TSE:BMO)’s fundamentals and stock market performance. … Bank of Montreal (TSE:BMO) trades with a trailing P/E of 14.4x, which is higher than the industry average of 12.9x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind

Simply Wall St -

Why I Like Bank of Montreal (TSE:BMO)

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been able to sustain great financial health over the past

Simply Wall St -

Why Bank of Montreal (TSE:BMO) Should Be In Your Portfolio

View our latest analysis for Bank of Montreal 5 questions I ask before picking a dividend stock If you are a dividend investor, you should always assess these five key metrics: Does it pay an annual yield higher than 75% of dividend payers? … TSX:BMO Historical Dividend Yield Jun 1st 18 How does Bank of Montreal fare? … Next Steps: With this in mind, I definitely rank Bank of Montreal as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio.

Simply Wall St -

Should You Buy Bank of Montreal (TSE:BMO)?

Let’s take a look at Bank of Montreal’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … It’s trading around 0.23% below my intrinsic value, which means if you buy Bank of Montreal today, you’d be paying a reasonable price for it. … Furthermore, Bank of Montreal’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta.

Simply Wall St -

BMO Company Info

Map
Description

Bank of Montreal provides diversified financial services primarily in North America. It operates through three groups: Personal and Commercial Banking, Wealth Management, and BMO Capital Markets. The company’s personal banking products and services include checking and savings accounts, credit cards, mortgages, creditor insurance products, and financial and investment advice services; and commercial banking products and services comprise business deposit accounts, commercial credit cards, business loans and commercial mortgages, cash management solutions, foreign exchange, and specialized banking programs for small business and commercial banking customers. It also offers equity and debt underwriting, corporate lending and project financing, mergers and acquisitions advisory services, securitization, treasury management, risk management, debt and equity research, and institutional sales and trading services to corporate, institutional, and government clients. In addition, the company offers trade finance, investment management, online investing, trust and estate services, tax planning, and investment solutions to institutional investors, as well as industry-leading research, sales, and trading services. It operates approximately 1,500 branches in Canada and the United States, as well as 2 smart branches in Edmonton and Calgary, Alberta. The company was founded in 1817 and is headquartered in Montreal, Canada.

Details
Name: Bank of Montreal
BMO
Exchange: TSX
Founded: 1817
CA$63,373,335,100
640,328,737
Website: http://www.bmo.com
Address: Bank of Montreal
129 rue Saint Jacques,
Montreal,
Quebec, H2Y 1L6,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX BMO Common Shares The Toronto Stock Exchange CA CAD 13. Dec 1972
NYSE BMO Common Shares New York Stock Exchange US USD 13. Dec 1972
DB BZZ Common Shares Deutsche Boerse AG DE EUR 13. Dec 1972
LSE 0UKH Common Shares London Stock Exchange GB CAD 13. Dec 1972
TSX BMO.PRE CL B PFD 44 The Toronto Stock Exchange CA CAD 17. Sep 2018
TSX BMO.PRD 4.4% PFD SER42 B The Toronto Stock Exchange CA CAD 29. Jun 2017
TSX BMO.PRC PFD CL B SER40 The Toronto Stock Exchange CA CAD 09. Mar 2017
TSX BMO.PRB PFD SER 38 The Toronto Stock Exchange CA CAD 21. Oct 2016
TSX BMO.PRZ PFD 35 CL B 5% The Toronto Stock Exchange CA CAD 30. Jul 2015
TSX BMO.PRY 3.8% PFD 33 CL B The Toronto Stock Exchange CA CAD 08. Jun 2015
TSX BMO.PRW PFD SER 31 CL B The Toronto Stock Exchange CA CAD 31. Jul 2014
Number of employees
Current staff
Staff numbers
45,200
Bank of Montreal employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/14 21:04
End of day share price update: 2018/11/13 00:00
Last estimates confirmation: 2018/11/13
Last earnings filing: 2018/08/28
Last earnings reported: 2018/07/31
Last annual earnings reported: 2017/10/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.