Executive Summary
Bank of Montreal provides diversified financial services primarily in North America.
Rewards
Risk Analysis
Snowflake Analysis
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
Stable Share Price: BMO's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
1.4%
BMO
-0.9%
CA Banks
2.1%
CA Market
1 Year Return
-29.4%
BMO
-20.9%
CA Banks
-21.2%
CA Market
Return vs Industry: BMO underperformed the Canadian Banks industry which returned -21.1% over the past year.
Return vs Market: BMO underperformed the Canadian Market which returned -22.9% over the past year.
Shareholder returns
| BMO | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.4% | -0.9% | 2.1% |
| 30 Day | -14.6% | -12.2% | -13.8% |
| 90 Day | -28.7% | -21.8% | -21.9% |
| 1 Year | -26.4%-29.4% | -17.5%-20.9% | -18.6%-21.2% |
| 3 Year | -18.1%-27.1% | -7.7%-18.2% | -11.0%-19.3% |
| 5 Year | 11.8%-8.3% | 20.6%-1.6% | 1.6%-13.6% |
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
3 days ago | Simply Wall St
What Is Bank of Montreal's (TSE:BMO) Share Price Doing?3 weeks ago | Simply Wall St
Philip Orsino Is The Independent Director of Bank of Montreal (TSE:BMO) And They Just Spent CA$960k On Shares1 month ago | Simply Wall St
Does Bank of Montreal's (TSE:BMO) Share Price Gain of 20% Match Its Business Performance?Valuation
Is Bank of Montreal undervalued compared to its fair value and its price relative to the market?
38.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BMO (CA$72.03) is trading below our estimate of fair value (CA$116.28)
Significantly Below Fair Value: BMO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BMO is poor value based on its PE Ratio (8.2x) compared to the Banks industry average (8.1x).
PE vs Market: BMO is good value based on its PE Ratio (8.2x) compared to the Canadian market (10.5x).
Price to Earnings Growth Ratio
PEG Ratio: BMO is poor value based on its PEG Ratio (4.4x)
Price to Book Ratio
PB vs Industry: BMO is good value based on its PB Ratio (1x) compared to the CA Banks industry average (1x).
Next Steps
Future Growth
How is Bank of Montreal forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
1.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BMO's forecast earnings growth (1.9% per year) is above the savings rate (1.4%).
Earnings vs Market: BMO's earnings (1.9% per year) are forecast to grow slower than the Canadian market (5.2% per year).
High Growth Earnings: BMO's earnings are forecast to grow, but not significantly.
Revenue vs Market: BMO's revenue (0.03% per year) is forecast to grow slower than the Canadian market (3.3% per year).
High Growth Revenue: BMO's revenue (0.03% 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%).
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
Quality Earnings: BMO has high quality earnings.
Growing Profit Margin: BMO's current net profit margins (22.8%) are lower than last year (25.1%).
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 has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BMO had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Banks industry average (5.3%).
Return on Equity
High ROE: BMO's Return on Equity (11.2%) is considered low.
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
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 (0.65%)
Next Steps
Dividend
What is Bank of Montreal's current dividend yield, its reliability and sustainability?
5.89%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: BMO's dividend (5.89%) is higher than the bottom 25% of dividend payers in the Canadian market (2.68%).
High Dividend: BMO's dividend (5.89%) is low compared to the top 25% of dividend payers in the Canadian market (8.42%).
Stability and Growth of Payments
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 (46.9%), 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 (47.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
William White (47yo)
2.42s
Tenure
CA$10,849,790
Compensation
Mr. William Darryl White is Chief Executive Officer of BMO Financial Group (“BMOFG”) in November 2017. He serves as a Director of BMO Financial Group, as well as its U.S. subsidiary, BMO Financial Corp. ...
CEO Compensation Analysis
Compensation vs Market: William's total compensation ($USD7.75M) is about average for companies of similar size in the Canadian market ($USD6.63M).
Compensation vs Earnings: William's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.42yrs | CA$10.85m | 0.0033% CA$1.5m | |
| Chief Financial Officer | 9.08yrs | CA$3.64m | 0.0027% CA$1.3m | |
| Group Head of North America Commercial Banking | 10.08yrs | CA$5.72m | 0.00062% CA$285.6k | |
| President of North American Personal & Business Banking | 11.25yrs | CA$4.96m | 0.000010% CA$4.6k | |
| Head of BMO Capital Markets | 1.42yrs | CA$6.51m | 0.00054% CA$248.8k | |
| Chief Technology & Operations Officer | 1.42yrs | no data | 0.00045% CA$207.3k | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel | 11.92yrs | no data | no data | |
| Head of Marketing & Strategy | no data | no data | no data | |
| Chief Human Resources Officer and Head of People & Culture | 0.92yr | no data | 0.00033% CA$152.0k |
5.8yrs
Average Tenure
Experienced Management: BMO's management team is seasoned and experienced (5.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.42yrs | CA$10.85m | 0.0033% CA$1.5m | |
| Independent Chairman of the Board | 0.083yr | CA$230.00k | 0.0040% CA$1.8m | |
| Independent Director | 9.67yrs | CA$393.19k | 0.00052% CA$239.6k | |
| Independent Director | 20.75yrs | CA$230.00k | 0.014% CA$6.4m | |
| Independent Director | 8.08yrs | CA$215.00k | 0.0011% CA$502.2k | |
| Independent Director | 9.08yrs | CA$215.00k | 0.000080% CA$36.9k | |
| Independent Director | 16.42yrs | CA$295.00k | 0.0018% CA$829.3k | |
| Independent Director | 5.08yrs | CA$250.00k | 0.000090% CA$41.5k | |
| Independent Director | 5.08yrs | CA$250.00k | 0.000080% CA$36.9k | |
| Independent Director | 7.5yrs | CA$300.00k | 0.000080% CA$36.9k |
7.8yrs
Average Tenure
59yo
Average Age
Experienced Board: BMO's board of directors are considered experienced (7.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: BMO insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$46.072b
- Shares outstanding: 639.63m
- 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 |
| BMO | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | 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.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, BMO Wealth Management, and BMO Capital Markets. The company’s personal banking products and services include checking and savings accounts, credit cards, mortgages, 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 wealth management products and services, such as investment and wealth advisory services; digital investing services; financial services and solutions to high net worth and ultra-high net worth clients; and investment management, and trust and custody services to institutional, retail, and high net worth investors. In addition, the company provides life insurance, accident and sickness insurance, and annuity products to brokers and individuals; creditor and travel insurance to bank customers; and reinsurance solutions. Further, it offers investment and corporate banking services, including client’s debt and equity capital-raising services, as well as loan origination and syndication, balance sheet management, and treasury management; strategic advice on mergers and acquisitions, restructurings, and recapitalizations, as well as valuation and fairness opinions; and trade finance, risk mitigation, and other operating services. Additionally, the company provides research and access to markets for institutional, corporate, and retail clients; new product development and origination services, as well as risk management advice and services to hedge against fluctuations; and funding and liquidity management services to its clients. The company was founded in 1817 and is headquartered in Montreal, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/07 23:38 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2020/01/31 |
| Annual Earnings | 2019/10/31 |
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.