Executive Summary
Bank of Montreal provides diversified financial services primarily in North America.
Snowflake
Fundamentals
Excellent balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Bank of Montreal's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
0.5%
BMO
0.5%
CA Banks
-0.2%
CA Market
1 Year Return
-5.3%
BMO
2.5%
CA Banks
1.5%
CA Market
Return vs Industry: BMO underperformed the Canadian Banks industry which returned 2.5% over the past year.
Return vs Market: BMO underperformed the Canadian Market which returned 1.5% over the past year.
Shareholder returns
| BMO | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | 0.5% | -0.2% |
| 30 Day | -0.2% | -0.9% | -3.5% |
| 90 Day | -1.8% | 2.0% | -1.8% |
| 1 Year | -1.5%-5.3% | 7.0%2.5% | 5.1%1.5% |
| 3 Year | 26.5%12.9% | 33.9%18.9% | 13.3%3.2% |
| 5 Year | 44.9%19.0% | 52.8%25.0% | 25.2%7.2% |
Price Volatility Vs. Market
How volatile is Bank of Montreal's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Bank of Montreal's (TSE:BMO) 4.3% Dividend Yield Looks Pretty Interesting1 month ago | Simply Wall St
Is It Time To Consider Buying Bank of Montreal (TSE:BMO)?1 month ago | Simply Wall St
Here's Why I Think Bank of Montreal (TSE:BMO) Is An Interesting StockValuation
Is Bank of Montreal undervalued compared to its fair value and its price relative to the market?
15.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BMO (CA$97.42) is trading below our estimate of fair value (CA$114.86)
Significantly Below Fair Value: BMO is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: BMO is good value based on its PE Ratio (10.3x) compared to the Banks industry average (11.1x).
PE vs Market: BMO is good value based on its PE Ratio (10.3x) compared to the Canadian market (13.7x).
Price to Earnings Growth Ratio
PEG Ratio: BMO is poor value based on its PEG Ratio (6.3x)
Price to Book Ratio
PB vs Industry: BMO is good value based on its PB Ratio (1.4x) compared to the CA Banks industry average (1.4x).
Next Steps
Future Growth
How is Bank of Montreal forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
1.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BMO's forecast earnings growth (1.6% per year) is below the savings rate (1.9%).
Earnings vs Market: BMO's earnings (1.6% per year) are forecast to grow slower than the Canadian market (13.6% per year).
High Growth Earnings: BMO's earnings are forecast to grow, but not significantly.
Revenue vs Market: BMO's revenue (3.1% per year) is forecast to grow slower than the Canadian market (5.7% per year).
High Growth Revenue: BMO's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BMO's Return on Equity is forecast to be low in 3 years time (12.9%).
Next Steps
Past Performance
How has Bank of Montreal performed over the past 5 years?
7.7%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: BMO's earnings have grown by 7.7% per year over the past 5 years.
Accelerating Growth: BMO's earnings growth over the past year (26.3%) exceeds its 5-year average (7.7% per year).
Earnings vs Industry: BMO earnings growth over the past year (26.3%) exceeded the Banks industry 6.8%.
Return on Equity
High ROE: BMO's Return on Equity (12.4%) is considered low.
Return on Assets
ROA vs Industry: BMO's Return on Assets is below or equal to the Banks industry average last year.
Return on Capital Employed
ROCE Improving: Insufficient data to calculate BMO's Return on Capital Employed to determine if it has improved over the past 3 years.
Next Steps
Financial Health
How is Bank of Montreal's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: BMO has a low level of unsold assets or inventory.
Debt Coverage by Assets: BMO's debt is covered by short term assets (assets are 1.860530x debt).
Financial Institutions Analysis
Asset Level: BMO's level of assets compared to its equity is moderate.
Allowance for Bad Loans: BMO has a low allowance for bad loans.
Low Risk Liabilities: BMO's liabilities are made up of primarily low risk sources of funding.
Loan Level: BMO has an acceptable proportion of non-loan assets held.
Low Risk Deposits: BMO's loans are broadly funded by customer deposits.
Level of Bad Loans: BMO has an appropriate level of bad loans (0.58%)
Next Steps
Dividend
What is Bank of Montreal's current dividend yield, its reliability and sustainability?
4.23%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Bank of Montreal before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: BMO's dividend (4.23%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).
High Dividend: BMO's dividend (4.23%) is low compared to the top 25% of dividend payers in the Canadian market (6.03%).
Stable Dividend: BMO's dividends per share have been stable in the past 10 years.
Growing Dividend: BMO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (42.1%), BMO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BMO's dividends in 3 years are forecast to be well covered by earnings (44.1% payout ratio).
Next Steps
Management
What is the CEO of Bank of Montreal's salary, the management and board of directors tenure and is there insider trading?
5.2yrs
Average management tenure
CEO
William White (47yo)
1.9yrs
Tenure
CA$10,124,234
Compensation
Mr. Darryl White is Chief Executive Officer of BMO Financial Group. He was appointed on November 1, 2017. He joined BMO in 1994, and has held a number of senior management positions, including Executive ...
CEO Compensation Analysis
Compensation vs. Market: William has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.
Compensation vs Earnings: William's compensation has increased by more than 20% in the past year.
Management Age and Tenure
5.2yrs
Average Tenure
57yo
Average Age
Experienced Management: BMO's management team is seasoned and experienced (5.2 years average tenure).
Board Age and Tenure
8.9yrs
Average Tenure
63yo
Average Age
Experienced Board: BMO's board of directors are considered experienced (8.9 years average tenure).
Insider Trading
Insider Buying: BMO insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | CA$91.70 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,000 |
| Max Price | CA$87.92 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,000 |
| Max Price | CA$89.35 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 16,000 |
| Max Price | CA$93.60 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | CA$92.96 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | CA$91.26 |
Ownership Breakdown
Management Team
L. Ménard (73yo)
President Emeritus of BMO Financial Group
- Tenure: 1.5yrs
Tom Flynn
Chief Financial Officer
- Tenure: 8.6yrs
- Compensation: CA$3.69m
Simon Fish (57yo)
General Counsel
- Tenure: 11.4yrs
William White (47yo)
CEO & Director
- Tenure: 1.9yrs
- Compensation: CA$10.12m
Pat Cronin
Chief Risk Officer
- Tenure: 8.5yrs
- Compensation: CA$7.51m
Cam Fowler
President of North American Personal & Business Banking
- Tenure: 10.8yrs
- Compensation: CA$5.06m
Jill Homenuk
Head of Investor Relations
- Tenure: 0yrs
Catherine Roche
Head of Marketing & Strategy
- Tenure: 0yrs
Steve Tennyson
Chief Technology & Operations Officer
- Tenure: 0.9yrs
Mona Malone
Chief Human Resources Officer and Head of People & Culture
- Tenure: 0.4yrs
Board Members
George Cope (57yo)
Independent Director
- Tenure: 13.3yrs
- Compensation: CA$230.00k
Christine Edwards (67yo)
Independent Director
- Tenure: 9.2yrs
- Compensation: CA$292.50k
Philip Orsino (65yo)
Independent Director
- Tenure: 20.3yrs
- Compensation: CA$251.13k
Rob Prichard (70yo)
Non-Executive Chairman
- Tenure: 7.6yrs
- Compensation: CA$412.50k
Don Wilson (71yo)
Independent Director
- Tenure: 11.6yrs
- Compensation: CA$312.50k
Eric La Flèche (57yo)
Independent Director
- Tenure: 7.6yrs
- Compensation: CA$215.00k
Sophie Brochu (55yo)
Independent Director
- Tenure: 8.6yrs
- Compensation: CA$215.00k
Ron Farmer (69yo)
Independent Director
- Tenure: 15.9yrs
- Compensation: CA$295.00k
William White (47yo)
CEO & Director
- Tenure: 1.9yrs
- Compensation: CA$10.12m
Jan Babiak (61yo)
- Tenure: 7yrs
- Compensation: CA$276.06k
Company Information
Bank of Montreal's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Bank of Montreal
- Ticker: BMO
- Exchange: TSX
- Founded: 1817
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: CA$62.255b
- Shares outstanding: 639.04m
- Website: https://www.bmo.com
Number of Employees
Location
- Bank of Montreal
- 129 rue Saint Jacques
- Montreal
- Quebec
- H2Y 1L6
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BMO | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 1972 |
| 0UKH | LSE (London Stock Exchange) | Yes | Common Shares | GB | CAD | Dec 1972 |
| BZZ | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 1972 |
| BMO | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Dec 1972 |
| BMO.PRW | TSX (The Toronto Stock Exchange) | PFD SER 31 CL B | CA | CAD | Jul 2014 | |
| BMO.PRY | TSX (The Toronto Stock Exchange) | 3.8% PFD 33 CL B | CA | CAD | Jun 2015 | |
| BMO.PRZ | TSX (The Toronto Stock Exchange) | PFD 35 CL B 5% | CA | CAD | Jul 2015 | |
| BMO.PRB | TSX (The Toronto Stock Exchange) | PFD SER 38 | CA | CAD | Oct 2016 | |
| BMO.PRC | TSX (The Toronto Stock Exchange) | PFD CL B SER40 | CA | CAD | Mar 2017 | |
| BMO.PRD | TSX (The Toronto Stock Exchange) | 4.4% PFD SER42 B | CA | CAD | Jun 2017 | |
| BMO.PRE | TSX (The Toronto Stock Exchange) | CL B PFD 44 | CA | CAD | Sep 2018 |
Biography
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 compa ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/21 23:32 |
| End of Day Share Price | 2019/10/21 00:00 |
| Earnings | 2019/07/31 |
| Annual Earnings | 2018/10/31 |
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.