Bank of Montreal
Bank of Montreal provides diversified financial services primarily in North America. The last earnings update was 288 days ago. More info.
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BMO Share Price and Events
BMO Value
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Bank of Montreal.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 12 analysts.
= Stable Book Value * Return on Equity = CA$69.47 * 1397.5% |
CA$9.71 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 10 analysts. | CA$69.47 |
| 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.
| 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 | 0.45 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.448 (1 + (1- 26.5%) (199.46%)) |
0.982 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.98 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.34% + (0.982 * 7.66%) |
9.86% |
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.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (1397.5% – 9.86%) * CA$69.47) |
CA$2.86 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= CA$2.86 / (9.86% - 2.34%) |
CA$38.01 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= CA$69.47 + CA$38.01 |
CA$107.48 |
| Calculation | Result | |
|---|---|---|
| Value per share (CAD) | From above. | CA$107.48 |
| Current discount | Discount to share price of
CA$107.42
= -1 x (CA$107.42 - CA$107.48) / CA$107.48 |
0.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- 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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-07-31) in CAD | CA$7.43 |
| TSX:BMO Share Price ** | TSX (2018-09-18) in CAD | CA$107.42 |
| Canada Banks Industry PE Ratio | Median Figure of 9 Publicly-Listed Banks Companies | 11.21x |
| Canada Market PE Ratio | Median Figure of 539 Publicly-Listed Companies | 15.99x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Bank of Montreal.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = TSX:BMO Share Price ÷ EPS (both in CAD) = 107.42 ÷ 7.43 |
14.46x |
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?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 14.46x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts |
12.6%per year |
| Canada Banks Industry PEG Ratio | Median Figure of 8 Publicly-Listed Banks Companies | 1.93x |
| Canada Market PEG Ratio | Median Figure of 271 Publicly-Listed Companies | 1.05x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 14.46x ÷ 12.6% |
1.15x |
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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-07-31) in CAD | CA$63.31 |
| TSX:BMO Share Price * | TSX (2018-09-18) in CAD | CA$107.42 |
| Canada Banks Industry PB Ratio | Median Figure of 9 Publicly-Listed Banks Companies | 1.7x |
| Canada Market PB Ratio | Median Figure of 2,330 Publicly-Listed Companies | 1.68x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = TSX:BMO Share Price ÷ Book Value per Share (both in CAD) = 107.42 ÷ 63.31 |
1.7x |
* 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 good value based on assets compared to the CA Banks industry average.
Value checks
We assess Bank of Montreal's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check) Bank of Montreal has a total score of 2/6, 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
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!
Earnings growth vs Low Risk Savings
- 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
| Data Point | Source | Value (per year) |
|---|---|---|
| TSX:BMO Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts | 12.6% |
| TSX:BMO Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts | 4.5% |
| Canada Banks Industry Earnings Growth Rate | Market Cap Weighted Average | 7.5% |
| Canada Banks Industry Revenue Growth Rate | Market Cap Weighted Average | 5.4% |
| Canada Market Earnings Growth Rate | Market Cap Weighted Average | 15.7% |
| Canada Market Revenue Growth Rate | Market Cap Weighted Average | 7.2% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 12 Analyst Estimates (S&P Global) | See Below |
| Date (Data in CAD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-10-31 | 24,082 | 4 | ||
| 2019-10-31 | 22,904 | 5,982 | 8 | |
| 2018-10-31 | 21,917 | 5,392 | 8 |
| 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.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 12 Analyst Estimates (S&P Global) | See Below |
All data from Bank of Montreal Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CAD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-10-31 | 10.62 | 10.62 | 10.62 | 1.00 |
| 2019-10-31 | 9.46 | 10.23 | 8.76 | 9.00 |
| 2018-10-31 | 7.96 | 8.43 | 7.77 | 9.00 |
| 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.
Future performance checks
We assess Bank of Montreal's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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?
- Bank of Montreal's last earnings update was 288 days ago.
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
Past Earnings growth analysis
- 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
All data from Bank of Montreal Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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 | |
| 2011-10-31 | 12,731.00 | 2,895.00 | 7,640.00 |
*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.
- Bank of Montreal has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Bank of Montreal's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Bank of Montreal has a total score of 2/6, 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
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.
Balance sheet
Assets
Liabilities and shares
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.
All data from Bank of Montreal Company Filings, last reported 1 month ago.
| 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 |
| 2011-10-31 | 27,836.00 | 139,835.00 | 187,847.00 |
BANK ANALYSIS
This company is a bank or financial institution, which is analysed accordingly below.
- 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%).
Financial health checks
We assess Bank of Montreal's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Bank of Montreal has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
CA$2,000 of
Bank of Montreal
shares you are expected to receive
CA$72
in your first year as a dividend.
Dividend Amount
- Bank of Montreal's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.79%).
- Bank of Montreal's dividend is below the markets top 25% of dividend payers in Canada (5.23%).
Upcoming dividend payment
Purchase Bank of Montreal on or before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 12 Analyst Estimates (S&P Global) | See Below |
| Canada Banks Industry Average Dividend Yield | Market Cap Weighted Average of 9 Stocks | 3.8% |
| Canada Market Average Dividend Yield | Market Cap Weighted Average of 298 Stocks | 3.3% |
| Canada Minimum Threshold Dividend Yield | 10th Percentile | 0.9% |
| Canada Bottom 25% Dividend Yield | 25th Percentile | 1.8% |
| Canada Top 25% Dividend Yield | 75th Percentile | 5.2% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in CA$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2020-10-31 | 4.47 | 4.00 |
| 2019-10-31 | 4.06 | 11.00 |
| 2018-10-31 | 3.77 | 10.00 |
| Date (Data in CA$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-08-28 | 3.840 | 3.588 |
| 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 |
| 2008-09-22 | 2.800 | 6.732 |
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).
- Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
Income/ dividend checks
We assess Bank of Montreal's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| COMPENSATION | CA$8,310,251 |
| AGE | 46 |
| TENURE AS CEO | 0.8 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 compensation appears reasonable for a company of this size and profit level.
Management Team Tenure
Average tenure and age of the Bank of Montreal management team in years:
- 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
CEO & Director
CA$8M
46
0.8 yrs
Tom Flynn
Chief Financial Officer
CA$4M
7.5 yrs
Jean-Michel Arès
Chief Technology & Operations Officer
CA$6M
Patrick Cronin
Group Head of BMO Capital Markets
CA$8M
7.4 yrs
Steve Tennyson
Executive VP & Chief Information Officer
0.7 yrs
Jill Homenuk
Head of Investor Relations
2.3 yrs
Simon Fish
General Counsel
56
10.3 yrs
Connie Stefankiewicz
Chief Marketing Officer
3.3 yrs
Richard Rudderham
Chief Human Resources Officer
Gilles Ouellette
Group Head of Asset Management & Vice-Chair of International
CA$4M
71
17.3 yrs
Board of Directors Tenure
Average tenure and age of the Bank of Montreal board of directors in years:
- The tenure for the Bank of Montreal board of directors is about average.
Board of Directors
Rob Prichard
Non-Executive Chairman
CA$574K
69
6.5 yrs
William White
CEO & Director
CA$8M
46
1.3 yrs
Dave Casper
U.S. CEO - BMO Financial Group
Ron Farmer
Director
CA$295K
68
14.8 yrs
Philip Orsino
Director
CA$280K
64
19.2 yrs
Don Wilson
Director
CA$310K
70
10.5 yrs
Christine Edwards
Director
CA$285K
66
8.1 yrs
Jan Babiak
Director
CA$245K
60
5.9 yrs
George Cope
Director
CA$230K
56
12.2 yrs
Sophie Brochu
Director
CA$215K
54
7.5 yrs
Who owns this company?
Management checks
We assess Bank of Montreal's management by checking for:- Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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
Simply Wall St News
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 - – Full articleWhy 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 - – Full articleRisk 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 - – Full articleIs 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 - – Full articleWhy 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 - – Full articleWhy 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 - – Full articleShould 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 - – Full articleBank of Montreal (TSE:BMO): What You Have To Know Before Buying For The Upcoming Dividend
View our latest analysis for Bank of Montreal Here's how I find good dividend stocks If you are a dividend investor, you should always assess these five key metrics: Is its annual yield among the top 25% of dividend-paying companies? … TSX:BMO Historical Dividend Yield Apr 26th 18 Does Bank of Montreal pass our checks? … In terms of its peers, Bank of Montreal has a yield of 3.83%, which is on the low-side for Banks stocks.
Simply Wall St - – Full articleBank of Montreal (TSE:BMO) Is Trading 4% Below Its True Value
Examining data points such as book values, in addition to the return and cost of equity, may be practical for calculating BMO’s valuation. … The returns above the cost of equity is known as excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (13.64% – 9.85%) * CA$67.54 = CA$2.56 We use this value to calculate the terminal value of the company, which is how much we expect the company to continue to earn every year, forever. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = CA$2.56 / (9.85% – 2.13%) = CA$33.14 These factors are combined to calculate the true value of BMO's stock: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = CA$67.54 + CA$33.14 = CA$100.69 Relative to the present share price of CA$96.76, BMO is , at this time, fairly priced by the market.
Simply Wall St - – Full articleWith An ROE Of 11.29%, Can Bank of Montreal (TSE:BMO) Catch Up To The Industry?
Check out our latest analysis for Bank of Montreal Breaking down ROE — the mother of all ratios Return on Equity (ROE) weighs Bank of Montreal’s profit against the level of its shareholders’ equity. … Some of Bank of Montreal’s peers may have a higher ROE but its cost of equity could exceed this return, leading to an unsustainable negative discrepancy i.e. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity TSX:BMO Last Perf Apr 3rd 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.
Simply Wall St - – Full articleBMO 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$68,741,263,949 | |
| 639,929,845 | |
| 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.PRW | PFD SER 31 CL B | The Toronto Stock Exchange | CA | CAD | 31. Jul 2014 | |
| TSX | BMO.PRY | 3.8% PFD 33 CL B | The Toronto Stock Exchange | CA | CAD | 08. Jun 2015 | |
| TSX | BMO.PRZ | PFD 35 CL B 5% | The Toronto Stock Exchange | CA | CAD | 30. Jul 2015 | |
| TSX | BMO.PRB | PFD SER 38 | The Toronto Stock Exchange | CA | CAD | 21. Oct 2016 | |
| TSX | BMO.PRC | PFD CL B SER40 | The Toronto Stock Exchange | CA | CAD | 09. Mar 2017 | |
| TSX | BMO.PRD | 4.4% PFD SER42 B | The Toronto Stock Exchange | CA | CAD | 29. Jun 2017 | |
| TSX | BMO.PRE | CL B PFD 44 | The Toronto Stock Exchange | CA | CAD | 17. Sep 2018 |
Number of employees
Current staff
Industry
| Diversified Banks | |
| Banks |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2018/09/19 21:01 |
| End of day share price update: | 2018/09/18 00:00 |
| Last estimates confirmation: | 2018/09/18 |
| Last earnings update: | 2018/07/31 |
| Last annual earnings update: | 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.
