NYSE:BMO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

6 star dividend payer with excellent balance sheet.


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

-1.3%

NYSE:BMO

-1.8%

US Banks

-1.6%

US Market


1 Year Return

-15.0%

NYSE:BMO

-16.1%

US Banks

-3.0%

US Market

BMO underperformed the Banks industry which returned -13.8% over the past year.

BMO underperformed the Market in United States of America which returned -0% over the past year.


Share holder returns

BMOIndustryMarket
7 Day-1.3%-1.8%-1.6%
30 Day-8.8%-10.6%-5.8%
90 Day-10.2%-5.0%0.2%
1 Year-11.5%-15.0%-13.7%-16.1%-0.8%-3.0%
3 Year16.2%3.7%37.9%28.5%38.0%29.1%
5 Year9.6%-10.0%49.4%33.2%50.8%34.1%

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

Valuation

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

20%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Bank of Montreal's share price is below the future cash flow value, and 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 Based on Earnings

Bank of Montreal is good value based on earnings compared to the US Banks industry average.

Bank of Montreal is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Bank of Montreal is poor value based on expected growth next year.


Price Based on Value of Assets

Bank of Montreal is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Bank of Montreal expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bank of Montreal's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).

Bank of Montreal's earnings are expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).

Bank of Montreal's revenue growth is positive but not above the United States of America market average.

Bank of Montreal's earnings growth is positive but not above the United States of America market average.

Bank of Montreal's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Bank of Montreal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

7.0%

Historical annual earnings growth


Earnings and Revenue History


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 exceeds its 5-year average (30.1% vs 7%)

Bank of Montreal's earnings growth has not exceeded the US Banks industry average in the past year (30.1% vs 33.1%).


Return on Equity

Bank of Montreal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Bank of Montreal used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

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.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Bank of Montreal has an acceptable proportion of non-loan assets held.

Bank of Montreal has a low allowance for bad loans.

Bank of Montreal's liabilities are made up of primarily low risk sources of funding.

Bank of Montreal's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Bank of Montreal are broadly funded by customer deposits.

Bank of Montreal has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

4.58%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Bank of Montreal's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Bank of Montreal's dividend is above the markets top 25% of dividend payers in United States of America (3.82%).

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

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


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?

8.3yrs

Average management tenure


CEO

William White (47yo)

1.8yrs

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

William's remuneration is lower than average for companies of similar size in United States of America.

William's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.3yrs

Average Tenure

57yo

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.


Board Age and Tenure

8.7yrs

Average Tenure

63yo

Average Age

The tenure for the Bank of Montreal board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCA$64,86021 Dec 18
Ronald Farmer
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceCA$64.86
BuyCA$66,75914 Dec 18
Ronald Farmer
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceCA$66.76
BuyCA$1,116,39612 Dec 18
George Cope
EntityIndividual
Role
Member of the Board of Directors
Director
Shares16,000
Max PriceCA$69.77
BuyCA$692,96412 Dec 18
Philip Orsino
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceCA$69.30
BuyCA$341,97612 Dec 18
Craig Broderick
EntityIndividual
Shares5,000
Max PriceCA$68.45
SellCA$1,966,89507 Sep 18
Richard Rudderham
EntityIndividual
Shares24,359
Max PriceCA$80.75

Ownership Breakdown


Management Team

  • Tom Flynn

    Chief Financial Officer

    • Tenure: 8.4yrs
    • Compensation: CA$3.69m
  • Simon Fish (57yo)

    General Counsel

    • Tenure: 11.3yrs
  • William White (47yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: CA$10.12m
  • Pat Cronin

    Chief Risk Officer

    • Tenure: 8.3yrs
    • Compensation: CA$7.51m
  • Cam Fowler

    President of North American Personal & Business Banking

    • Tenure: 10.6yrs
    • Compensation: CA$5.06m
  • Jan Babiak (61yo)

    • Tenure: 6.8yrs
    • Compensation: CA$276.06k
  • Jill Homenuk

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Catherine Roche

    Head of Marketing & Strategy

    • Tenure: 0.0yrs
  • Steve Tennyson

    Chief Technology & Operations Officer

    • Tenure: 0.8yrs
  • Mona Malone

    Chief Human Resources Officer and Head of People & Culture

    • Tenure: 0.3yrs

Board Members

  • George Cope (57yo)

    Director

    • Tenure: 13.1yrs
    • Compensation: CA$230.00k
  • Christine Edwards (67yo)

    Director

    • Tenure: 9.0yrs
    • Compensation: CA$292.50k
  • Philip Orsino (65yo)

    Director

    • Tenure: 20.1yrs
    • Compensation: CA$251.13k
  • Rob Prichard (70yo)

    Non-Executive Chairman

    • Tenure: 7.4yrs
    • Compensation: CA$412.50k
  • Don Wilson (71yo)

    Director

    • Tenure: 11.4yrs
    • Compensation: CA$312.50k
  • Eric La Flèche (57yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: CA$215.00k
  • Sophie Brochu (55yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: CA$215.00k
  • Ron Farmer (69yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: CA$295.00k
  • William White (47yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: CA$10.12m
  • Jan Babiak (61yo)

    • Tenure: 6.8yrs
    • 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: NYSE
  • Founded: 1817
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CA$58.782b
  • Listing Market Cap: CA$44.190b
  • Shares outstanding: 638.94m
  • Website: https://www.bmo.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BMOTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
0UKHLSE (London Stock Exchange)YesCommon SharesGBCADDec 1972
BZZDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
BMONYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
BMO.PRWTSX (The Toronto Stock Exchange)PFD SER 31 CL BCACADJul 2014
BMO.PRYTSX (The Toronto Stock Exchange)3.8% PFD 33 CL BCACADJun 2015
BMO.PRZTSX (The Toronto Stock Exchange)PFD 35 CL B 5%CACADJul 2015
BMO.PRBTSX (The Toronto Stock Exchange)PFD SER 38CACADOct 2016
BMO.PRCTSX (The Toronto Stock Exchange)PFD CL B SER40CACADMar 2017
BMO.PRDTSX (The Toronto Stock Exchange)4.4% PFD SER42 BCACADJun 2017
BMO.PRETSX (The Toronto Stock Exchange)CL B PFD 44CACADSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 23:32
End of Day Share Price2019/08/23 00:00
Earnings2019/04/30
Annual Earnings2018/10/31


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.