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BMO

Bank of MontrealTSX:BMO Stock Report

Market Cap

CA$89.3b

7D

0.03%

1Y

42.5%

Updated

28 Nov, 2021

Data

Company Financials +
BMO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends5/6

BMO Stock Overview

Bank of Montreal provides diversified financial services primarily in North America.

Rewards

Trading at 38% below our estimate of its fair value

Earnings grew by 55.7% over the past year

Pays a reliable dividend of 3.07%

Risk Analysis

No risks detected for BMO from our risk checks.

Bank of Montreal Competitors

Canadian Imperial Bank of Commerce

TSX:CM

CA$66.1b

National Bank of Canada

TSX:NA

CA$34.6b

PayPal Holdings

NasdaqGS:PYPL

US$220.6b

American Express

NYSE:AXP

US$121.5b

Price History & Performance

Summary of all time highs, changes and price drops for Bank of Montreal
Historical stock prices
Current Share PriceCA$137.93
52 Week HighCA$141.00
52 Week LowCA$93.33
Beta1.18
1 Month Change2.65%
3 Month Change9.55%
1 Year Change42.53%
3 Year Change39.14%
5 Year Change54.98%
Change since IPO1,597.60%

Recent News & Updates

Oct 18
Bank of Montreal (TSE:BMO) Has Re-Affirmed Its Dividend Of CA$1.06

Bank of Montreal (TSE:BMO) Has Re-Affirmed Its Dividend Of CA$1.06

The board of Bank of Montreal ( TSE:BMO ) has announced that it will pay a dividend on the 26th of November, with...

Sep 24
Bank of Montreal (TSE:BMO) Will Pay A Dividend Of CA$1.06

Bank of Montreal (TSE:BMO) Will Pay A Dividend Of CA$1.06

Bank of Montreal ( TSE:BMO ) has announced that it will pay a dividend of CA$1.06 per share on the 26th of November...

Sep 10
Bank of Montreal's (TSE:BMO) Dividend Will Be CA$1.06

Bank of Montreal's (TSE:BMO) Dividend Will Be CA$1.06

The board of Bank of Montreal ( TSE:BMO ) has announced that it will pay a dividend on the 26th of November, with...

Shareholder Returns

BMOCA BanksCA Market
7D0.03%0.1%-1.7%
1Y42.5%29.6%21.9%

Return vs Industry: BMO exceeded the Canadian Banks industry which returned 29.6% over the past year.

Return vs Market: BMO exceeded the Canadian Market which returned 21.9% over the past year.

Price Volatility

Is BMO's price volatile compared to industry and market?
BMO volatility
BMO Average Weekly Movement2.0%
Banks Industry Average Movement1.7%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.2%
10% least volatile stocks in CA Market3.5%

Stable Share Price: BMO is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: BMO's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
181743,360William Whitehttps://www.bmo.com

Bank of Montreal provides diversified financial services primarily in North America. 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, specialized banking programs, treasury and payment solutions, and risk management products for small business and commercial banking customers. It also offers investment and wealth advisory services; digital investing services; financial services and solutions; and investment management, and trust and custody services to institutional, retail, and high net worth investors.

Bank of Montreal Fundamentals Summary

How do Bank of Montreal's earnings and revenue compare to its market cap?
BMO fundamental statistics
Market CapCA$89.31b
Earnings (TTM)CA$6.94b
Revenue (TTM)CA$25.94b

12.9x

P/E Ratio

1.7x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BMO income statement (TTM)
RevenueCA$25.94b
Cost of RevenueCA$0
Gross ProfitCA$25.94b
ExpensesCA$19.00b
EarningsCA$6.94b

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

Dec 03, 2021

Earnings per share (EPS)10.72
Gross Margin100.00%
Net Profit Margin26.76%
Debt/Equity Ratio265.3%

How did BMO perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

39%

Payout Ratio

Valuation

Is Bank of Montreal undervalued compared to its fair value and its price relative to the market?

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BMO (CA$137.93) is trading below our estimate of fair value (CA$222.56)

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 (12.9x) compared to the Canadian Banks industry average (11.4x).

PE vs Market: BMO is poor value based on its PE Ratio (12.9x) compared to the Canadian market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: BMO is poor value based on its PEG Ratio (118.4x)


Price to Book Ratio

PB vs Industry: BMO's PB Ratio (1.7x) is in line with the CA Banks industry average.


Future Growth

How is Bank of Montreal forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

0.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BMO's forecast earnings growth (0.1% per year) is below the savings rate (1.6%).

Earnings vs Market: BMO's earnings (0.1% per year) are forecast to grow slower than the Canadian market (10.6% per year).

High Growth Earnings: BMO's earnings are forecast to grow, but not significantly.

Revenue vs Market: BMO's revenue (2.1% per year) is forecast to grow slower than the Canadian market (5.6% per year).

High Growth Revenue: BMO's revenue (2.1% 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 (15%).


Past Performance

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

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BMO has high quality earnings.

Growing Profit Margin: BMO's current net profit margins (26.8%) are higher than last year (19.8%).


Past Earnings Growth Analysis

Earnings Trend: BMO's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: BMO's earnings growth over the past year (55.7%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: BMO earnings growth over the past year (55.7%) exceeded the Banks industry 36.4%.


Return on Equity

High ROE: BMO's Return on Equity (12.4%) is considered low.


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 Assets to Equity ratio (16.8x) is moderate.

Allowance for Bad Loans: BMO has a sufficient allowance for bad loans (116%).

Low Risk Liabilities: 74% of BMO's liabilities are made up of primarily low risk sources of funding.

Loan Level: BMO has an appropriate level of Loans to Assets ratio (47%).

Low Risk Deposits: BMO's Loans to Deposits ratio (67%) is appropriate.

Level of Bad Loans: BMO has an appropriate level of bad loans (0.5%).


Dividend

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

3.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BMO's dividend (3.07%) is higher than the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: BMO's dividend (3.07%) is low compared to the top 25% of dividend payers in the Canadian market (4.6%).


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 (39.5%), 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 (42% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

William White (49 yo)

4yrs

Tenure

CA$11,086,920

Compensation

Mr. William Darryl White is Chief Executive Officer of Bank of Montreal in November 1, 2017. He serves as a Director of Bank of Montreal since May 24, 2017, as well as its U.S. subsidiary, BMO Financial Co...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD8.67M) is above average for companies of similar size in the Canadian market ($USD5.54M).

Compensation vs Earnings: William's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BMO's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: BMO's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Bank of Montreal's 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$89.306b
  • Shares outstanding: 647.47m
  • Website: https://www.bmo.com

Number of Employees


Location

  • Bank of Montreal
  • 129 rue Saint Jacques
  • Montreal
  • Quebec
  • H2Y 1L6
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/28 23:04
End of Day Share Price2021/11/26 00:00
Earnings2021/07/31
Annual Earnings2020/10/31


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.