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Bank Of Montreal
(NYSE:BMO)
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Rating:77Outperform
Price Target:―
Action:N/A
Date:01/13/25
BMO's overall stock score reflects a strong financial performance driven by revenue growth and cash flow strength, despite operational challenges. Technical indicators support a stable outlook, while valuation metrics are appealing for income investors. Mixed sentiment from the earnings call, particularly regarding net income decline and U.S. segment challenges, slightly offsets the positives. Overall, BMO presents a well-rounded investment but with attention to macroeconomic risks.
Positive Factors
Diversified revenue and fee growth
Growth across banking, wealth management and capital markets reduces dependence on any single earnings stream. Rising fee income and client assets can provide recurring revenue and complement interest-sensitive banking income over the medium term.
Negative Factors
Volatile leverage and debt capacity
Although TTM leverage improved, historical swings and modest operating cash flow relative to debt indicate sensitivity to funding and cash-flow conditions. This can constrain financial flexibility if credit losses rise or earnings weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue and fee growth
Growth across banking, wealth management and capital markets reduces dependence on any single earnings stream. Rising fee income and client assets can provide recurring revenue and complement interest-sensitive banking income over the medium term.
Read all positive factors
Bank Of Montreal (BMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$121.71B
Dividend Yield2.79%
Average Volume (3M)705.54K
Price to Earnings (P/E)18.3
Beta (1Y)0.70
Revenue Growth-1.07%
EPS Growth8.33%
CountryUS
Employees53,234
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)12.30
Shares Outstanding706,195,740
10 Day Avg. Volume619,914
30 Day Avg. Volume705,541
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)1.43
Price to Sales (P/S)1.61
P/FCF Ratio14.78
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$188.90Price Target Upside8.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)10.54
Revenue Forecast (FY)$28.11B
Bank Of Montreal Business Overview & Revenue Model
Company Description
Bank of Montreal engages in the provision of diversified financial services primarily in North America. The company operates through Canadian P&C, U.S P&C, BMO Wealth Management, and BMO Capital Markets segments. It’s personal banking products and...
How the Company Makes Money
BMO generates revenue primarily through net interest income and non-interest income. Net interest income is earned from the difference between the interest it collects on loans and the interest it pays on deposits. This includes personal loans, mo...
Bank Of Montreal Earnings Call Summary
Earnings Call Date:Aug 25, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call highlighted broad-based, multi-segment operating strength: double-digit revenue growth, record PPPT across all businesses, improving returns (ROE to 14%), strong capital metrics and credit improvement. Management also outlined strategic portfolio optimization (dispositions) and continued investments in technology/AI to drive future productivity. Headwinds include a significant one‑time goodwill charge related to announced disposals, some near-term NIM drag from higher liquidity and continued uncertainty from recent Canada-U.S. tariff actions; corporate services experienced a quarter of weaker performance and expenses are growing as investments continue. Overall, positive momentum, diversified fee growth and improving credit/capital profiles materially outweigh the manageable near-term challenges.Positive Updates
Adjusted EPS and Net Income Growth
Adjusted EPS of $3.96, up 22% year-over-year; adjusted net income of $2.9 billion (record).
Negative Updates
Reported Results Impacted by One-Time Charge
Reported EPS was $2.38 and reported net income $1.8 billion; quarter included a $973 million charge largely related to goodwill on the announced sale of transportation finance and vendor finance businesses, reducing reported results.
Read all updates
Q3-2026 Updates
Positive
Negative
Adjusted EPS and Net Income Growth
Adjusted EPS of $3.96, up 22% year-over-year; adjusted net income of $2.9 billion (record).
Read all positive updates
Company Guidance
Management reiterated a clear set of forward-looking targets: they continue to target a sustainable 15% ROE exiting fiscal 2027 (adjusted ROE was 14% this quarter) and said there is no change to 2026 guidance, with fourth‑quarter impaired PCL expected to be in line with Q3 ($722M); credit metrics remain strong (gross impaired loans $6.8B / 97 bps, performing allowance $4.8B / 69 bps). On capital and capital actions, CET1 is 13% today, announced dispositions are expected to add ~50 bps of CET1 on closing, organic capital generation net of dividends was ~33 bps, and a new NCIB for up to 25M shares (~3.6% of shares outstanding) was approved. On the operating front they reaffirmed mid‑single‑digit core expense growth and positive operating leverage for the full year (current operating leverage 1.6%, efficiency ratio 54.9%), expect to grow NII while maintaining NIM stability (NII ex‑Markets +5% YoY; NIM ex‑Markets 226 bps, +5 bps YoY), and see resilient core margin trends as average loans (+3% YoY) and core operating deposits (+8% YoY) continue to expand.Bank Of Montreal Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 77.92B | 78.15B | 78.56B | 29.02B | 26.26B | 26.91B |
| Gross Profit | 35.45B | 32.48B | 28.28B | 29.64B | 25.69B | 26.91B |
| EBITDA | 13.61B | 12.39B | 11.18B | 7.71B | 19.09B | 11.44B |
| Net Income | 9.15B | 8.71B | 7.32B | 4.42B | 13.54B | 7.75B |
Balance Sheet | ||||||
| Total Assets | 1.54T | 1.48T | 1.41T | 1.29T | 1.14T | 988.17B |
| Cash, Cash Equivalents and Short-Term Investments | 74.09B | 104.16B | 113.53B | 114.31B | 118.21B | 121.97B |
| Total Debt | 131.22B | 415.19B | 262.44B | 248.74B | 222.64B | 189.81B |
| Total Liabilities | 1.45T | 1.39T | 1.33T | 1.22T | 1.07T | 930.65B |
| Stockholders Equity | 86.52B | 88.05B | 84.25B | 77.01B | 71.04B | 57.52B |
Cash Flow | ||||||
| Free Cash Flow | 30.27B | 8.51B | 27.47B | 19.59B | 3.51B | 43.07B |
| Operating Cash Flow | 32.20B | 10.24B | 29.03B | 21.27B | 4.96B | 44.05B |
| Investing Cash Flow | -41.41B | 605.00M | -24.53B | -21.16B | -29.47B | -299.00M |
| Financing Cash Flow | 24.41B | -8.67B | -17.41B | 268.00M | 15.98B | 47.12B |
Bank Of Montreal Technical Analysis
Neutral
173.46
Price Trends
176.91
Negative
164.79
Positive
148.22
Positive
Market Momentum
-0.49
Positive
40.78
Neutral
14.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BMO, the sentiment is Neutral. The current price of 173.46 is below the 20-day moving average (MA) of 179.42, below the 50-day MA of 176.91, and above the 200-day MA of 148.22, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 40.78 is Neutral, neither overbought nor oversold. The STOCH value of 14.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BMO.
Bank Of Montreal Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | C$391.88B | 18.59 | 15.95% | 2.16% | 1.99% | 22.50% | |
77 Outperform | $121.71B | 18.27 | 11.25% | 2.70% | -1.07% | 8.33% | |
70 Outperform | C$147.57B | 15.68 | 15.24% | 2.52% | -3.32% | 27.25% | |
68 Neutral | C$148.26B | 16.50 | 11.06% | 3.62% | -3.29% | 43.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | C$84.06B | 18.99 | 13.77% | 2.19% | 6.36% | 7.80% | |
65 Neutral | C$272.72B | 18.99 | 11.85% | 2.56% | -11.69% | -11.99% |
* Financial Sector Average
BMO
Bank Of Montreal
173.46
58.23
50.53%
TSE:BNS
Bank Of Nova Scotia
128.73
47.22
57.94%
TSE:CM
Canadian Bank of Commerce
163.72
63.18
62.85%
TSE:RY
Royal Bank Of Canada
286.63
91.96
47.24%
TSE:TD
Toronto Dominion Bank
164.75
63.07
62.03%
TSE:NA
National Bank of Canada
222.53
81.80
58.13%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.