Bank Of Montreal (BMO)
NYSE:BMO
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Positive Factors
Strong capital buffer (CET1)
A CET1 ratio of ~13.1% above the ~12.5% target provides durable loss-absorbing capacity and regulatory headroom. This supports continued capital returns and buybacks while insulating the bank through credit cycles and funding stress, preserving franchise stability over months.
Negative Factors
Weak cash conversion
A large decline in free cash flow and sub-100% cash conversion of earnings reduce financial flexibility. Over the medium term this constrains the bank's ability to sustainably fund buybacks, dividends, or cushion volatility, making capital actions more dependent on future cash recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong capital buffer (CET1)
A CET1 ratio of ~13.1% above the ~12.5% target provides durable loss-absorbing capacity and regulatory headroom. This supports continued capital returns and buybacks while insulating the bank through credit cycles and funding stress, preserving franchise stability over months.
Read all positive factors
Bank Of Montreal (BMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$99.44B
Dividend Yield3.61%
Average Volume (3M)814.65K
Price to Earnings (P/E)13.2
Beta (1Y)0.71
Revenue Growth15.63%
EPS Growth66.95%
CountryUS
Employees53,597
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)2.51
Shares Outstanding706,195,740
10 Day Avg. Volume843,470
30 Day Avg. Volume814,649
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)1.43
Price to Sales (P/S)1.61
P/FCF Ratio14.78
Enterprise Value/Market Cap4.79
Enterprise Value/Revenue6.18
Enterprise Value/Gross Profit14.30
Enterprise Value/Ebitda34.28
Forecast
1Y Price Target
$150.64Price Target Upside6.84% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)10.23
Revenue Forecast (FY)$27.83B
Bank Of Montreal Business Overview & Revenue Model
Company Description
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;...
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:Feb 25, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Positive
The call showcases clear and broad-based operational momentum with record PPPT, double-digit EPS and ROE improvement, strong Capital Markets and Wealth performance, successful integration of acquisitions, disciplined cost actions and continued capital returns. Offsetting this are one-time severance costs, elevated expenses in the near term, pockets of consumer credit stress in Canada (higher delinquencies and elevated unsecured loss rates), muted loan growth due to optimization (especially in the U.S.) and macro/trade uncertainty affecting Canadian outlook. On balance, the positives—sizable earnings and ROE progression, margin improvement, strong fee growth and a path to further loan/deposit expansion as optimization completes—materially outweigh the transitory and localized headwinds.Positive Updates
Record Pre-Provision Pre-Tax Earnings and Revenue
PPPT reached a record $4.1 billion. Management reported record revenue across each operating segment, with total revenue up 6% year-over-year (8% on a constant currency basis).
Negative Updates
One-Time Severance Charge and Near-Term EPS Impact
A previously announced severance charge of $202 million (pre-tax) reduced EPS by $0.21 (approximately $147 million after tax). The charge increased reported expenses this quarter and was recorded across operating segments.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Pre-Provision Pre-Tax Earnings and Revenue
PPPT reached a record $4.1 billion. Management reported record revenue across each operating segment, with total revenue up 6% year-over-year (8% on a constant currency basis).
Read all positive updates
Company Guidance
Management reiterated it is on track to hit its 15% ROE goal by year‑end 2027 while maintaining a strong CET1 buffer (Q1 CET1 13.1% vs a 12.5% target) and continuing buybacks (6 million shares repurchased this quarter); Q1 results included record PPPT $4.1B, adjusted EPS $3.48 (+15% YoY), net income $2.6B (+11%), revenue +6% (+8% CC), NII ex‑Markets +5% (+7% CC) and NIM ex‑Markets 233 bps (+20 bps YoY, +3 bps q/q) with NIM expected to be relatively stable as ladder reinvestments and deposit‑mix tailwinds offset competitive pressures. They said U.S. balance‑sheet optimization is ~90% complete and should be effectively finished by end‑Q2, supporting positive commercial loan growth in H2 and mid‑single‑digit loan growth overall; credit guidance is for impaired provisions to remain in the mid‑40 bps range (Q1 PCL $746M or 44 bps), gross impaired loans $6.9B (102 bps) and a performing allowance of $4.6B (69 bps). The quarter included a $202M severance charge ($147M after tax) that reduced EPS by $0.21 but will yield ~$250M of annualized savings (half in 2026, half in 2027), underpinning expected positive operating leverage (1.1% ex‑charge) and an improved efficiency ratio of 55.8%.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 | 77.01B | 78.15B | 78.56B | 29.02B | 26.26B | 26.91B |
| Gross Profit | 33.31B | 32.48B | 28.28B | 29.64B | 25.95B | 26.91B |
| EBITDA | 13.89B | 12.39B | 11.18B | 7.71B | 19.09B | 11.44B |
| Net Income | 9.06B | 8.71B | 7.32B | 4.42B | 13.54B | 7.75B |
Balance Sheet | ||||||
| Total Assets | 1.46T | 1.48T | 1.41T | 1.29T | 1.14T | 988.17B |
| Cash, Cash Equivalents and Short-Term Investments | 373.05B | 104.16B | 113.53B | 114.31B | 118.21B | 121.97B |
| Total Debt | 407.31B | 415.19B | 262.44B | 248.74B | 222.64B | 189.81B |
| Total Liabilities | 1.37T | 1.39T | 1.33T | 1.22T | 1.07T | 930.65B |
| Stockholders Equity | 85.70B | 88.05B | 84.25B | 77.01B | 71.04B | 57.52B |
Cash Flow | ||||||
| Free Cash Flow | 2.30B | 8.51B | 27.47B | 19.59B | 3.51B | 43.07B |
| Operating Cash Flow | 4.03B | 10.24B | 29.03B | 21.27B | 4.96B | 44.05B |
| Investing Cash Flow | 1.75B | 605.00M | -24.53B | -21.16B | -29.47B | -299.00M |
| Financing Cash Flow | -11.57B | -8.67B | -17.41B | 268.00M | 15.98B | 47.12B |
Bank Of Montreal Technical Analysis
Positive
141.00
Price Trends
140.20
Positive
134.25
Positive
126.00
Positive
Market Momentum
-0.72
Negative
56.40
Neutral
91.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BMO, the sentiment is Positive. The current price of 141 is above the 20-day moving average (MA) of 136.81, above the 50-day MA of 140.20, and above the 200-day MA of 126.00, indicating a bullish trend. The MACD of -0.72 indicates Negative momentum. The RSI at 56.40 is Neutral, neither overbought nor oversold. The STOCH value of 91.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
| ― | $99.44B | 13.18 | 10.47% | 3.61% | 15.63% | 66.95% | |
69 Neutral | C$129.40B | 9.41 | 14.76% | 3.07% | -3.13% | 18.22% | |
66 Neutral | C$327.20B | 13.71 | 15.37% | 2.58% | 2.13% | 25.16% | |
66 Neutral | C$73.68B | 12.62 | 12.83% | 2.64% | 7.50% | -5.28% | |
64 Neutral | C$231.88B | 13.22 | 17.26% | 3.34% | 3.07% | 144.41% | |
62 Neutral | C$121.55B | 14.70 | 10.41% | 4.32% | -3.65% | -1.73% |
* Financial Sector Average
BMO
Bank Of Montreal
141.00
55.56
65.02%
TSE:BNS
Bank Of Nova Scotia
98.62
38.02
62.74%
TSE:CM
Canadian Bank of Commerce
139.65
63.51
83.42%
TSE:RY
Royal Bank Of Canada
234.28
85.54
57.50%
TSE:TD
Toronto Dominion Bank
137.25
60.24
78.23%
TSE:NA
National Bank of Canada
190.27
83.36
77.98%
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.Date of analysis: ―