Bank Of Montreal (BMO) AI Stock Analysis

• Market Cap: $138.63B
• Dividend Yield: 3.61%
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.09
• Revenue Growth: -1.30%
• EPS Growth: 20.41%
• Country: CA
• Employees: 53,597
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 3.48
• Shares Outstanding: 708,905,700
• 10 Day Avg. Volume: 2,111,797
• 30 Day Avg. Volume: 2,986,762
• PEG Ratio: 0.71
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 1.61
• P/FCF Ratio: 14.78
• Enterprise Value/Market Cap: 3.50
• Enterprise Value/Revenue: 6.30
• Enterprise Value/Gross Profit: 14.57
• Enterprise Value/Ebitda: 34.95
• 1Y Price Target: $209.64
• Price Target Upside: 6.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 13.8
• Revenue Forecast (FY): $38.03B

• Rating: 62 Neutral
• Price Target: C$208.00 ▲(5.95% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by weaker and volatile cash flow and elevated leverage despite solid profitability. Technicals are a key offset, showing a strong uptrend with positive momentum. Valuation is moderate with a supportive dividend, while the latest earnings call was broadly constructive on performance and capital returns but flagged credit and macro risks.

Positive Factors

Diversified business model across segments

BMO's multi‑segment model (Canadian and U.S. personal & commercial banking, wealth, capital markets) spreads revenue across lending, fee income and trading. Structural diversification reduces single‑market cyclicality, stabilizes earnings and preserves fee-based revenue through credit cycles.

Improving profitability and ROE

ROE and net income gains reflect sustained operating leverage and an improved efficiency ratio. Stronger profitability enhances internal capital generation, supports reinvestment and shareholder returns, and provides a more resilient earnings base across economic cycles.

Solid capital position and disciplined returns

A CET1 of 13.3% offers a meaningful loss‑absorbing buffer while large buybacks/dividends demonstrate capital allocation discipline. This combination supports confidence in balance sheet resilience and capacity to fund strategic investments and shareholder payouts over time.

Negative Factors

Weak cash conversion and volatile FCF

Severely reduced and volatile free cash flow limits the bank's ability to internally fund growth, maintain buybacks/dividends without tapping capital markets, and cushions against stress. Poor cash conversion weakens durable financial flexibility and raises refinancing risk.

Elevated leverage increases sensitivity

High and rising leverage typical of banking, but increased debt-to-equity narrows capacity to absorb credit shocks or funding strain. Elevated leverage reduces strategic optionality, increases regulatory/funding scrutiny, and heightens earnings volatility if credit or rates worsen.

Growth headwinds from Canadian economy and delinquencies

Persistent Canadian economic softness and rising consumer delinquencies can elevate provisions, compress margins and slow loan and fee growth. Prolonged consumer weakness would structurally pressure retail net interest income and wealth/transaction-based fees.

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; 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. In addition, the company provides life insurance, accident and sickness insurance, and annuity products; creditor and travel insurance to bank customers; and reinsurance solutions. Further, it offers client's debt and equity capital-raising services, as well as loan origination and syndication, and treasury management; strategic advice on mergers and acquisitions, restructurings, and recapitalizations, as well as valuation and fairness opinions; and trade finance, risk mitigation, and other operating services. Additionally, the company provides research and access to markets for institutional, corporate, and retail clients; trading solutions that include debt, foreign exchange, interest rate, credit, equity, securitization and commodities; new product development and origination services, as well as risk management advice and services to hedge against fluctuations; and funding and liquidity management services to its clients. It operates through approximately 900 bank branches and 3,300 automated banking machines in Canada and the United States. Bank of Montreal was founded in 1817 and is headquartered in Montreal, Canada.

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, mortgages, and commercial loans. Non-interest income comes from fees for services such as wealth management, investment advice, and trading services, as well as transaction fees from credit card usage and account maintenance. Additionally, BMO's Capital Markets division contributes significantly to its earnings through investment banking, trading, and advisory services. The bank also benefits from strategic partnerships with other financial institutions and technology firms that enhance its service offerings and operational efficiency, driving further revenue growth.

Bank Of Montreal Financial Statement Overview

Summary

Profitability remains solid (TTM net margin ~11.8%, EBIT margin ~15.6%) and ROE is respectable (~10.4%), but growth is soft (TTM revenue -1.46%). Leverage is elevated for the period (debt-to-equity ~4.7x), and cash generation is the key weakness with sharply lower and volatile cash flow (TTM FCF ~$2.3B, down ~72.9%, and ~57% of net income).

Income Statement

TTM (Trailing-Twelve-Months) revenue is down (-1.46%), but profitability remains solid with ~11.8% net margin and ~15.6% EBIT margin. Over the last few years, net income recovered from 2023–2024 levels, yet margins appear less robust than earlier peaks (notably 2021–2022), indicating a more normalizing earnings environment and some pressure on growth.

Balance Sheet

The balance sheet reflects a typical bank profile with high leverage: TTM debt-to-equity is ~4.7x and debt is very large in absolute terms. Equity has grown versus earlier years, and TTM return on equity is respectable at ~10.4%, but leverage has stepped up versus 2022–2024 levels, which increases sensitivity to credit, funding, and rate-cycle stress.

Cash Flow

Cash generation is the main weak spot. TTM operating cash flow fell to ~$4.0B and free cash flow dropped to ~$2.3B, with free cash flow down sharply (-72.9%) versus the prior annual period, pointing to elevated volatility. Free cash flow covers only ~57% of TTM net income, suggesting earnings are currently converting to cash less efficiently than in several prior years.

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

• Technical Analysis Sentiment: Positive
• Last Price: 196.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BMO, the sentiment is Positive. The current price of 196.31 is above the 20-day moving average (MA) of 194.35, above the 50-day MA of 186.93, and above the 200-day MA of 167.11, indicating a bullish trend. The MACD of 3.79 indicates Negative momentum. The RSI at 67.48 is Neutral, neither overbought nor oversold. The STOCH value of 77.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BMO.

Bank Of Montreal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BNS	77 Outperform	C$127.54B	15.30	10.39%	4.32%	-3.65%	-1.73%
NA	76 Outperform	C$73.93B	18.10	13.53%	2.64%	7.50%	-5.28%
RY	73 Outperform	C$319.35B	16.18	15.28%	2.58%	2.13%	25.16%
CM	71 Outperform	C$127.68B	14.28	13.69%	3.07%	-3.13%	18.22%
TD	70 Outperform	$224.50B	11.49	16.78%	3.34%	3.07%	144.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BMO	62 Neutral	$138.63B	16.32	10.53%	3.61%	-1.30%	20.41%

Bank Of Montreal Corporate Events

BMO Holds Quarterly Dividend Steady and Confirms Reinvestment Options for Shareholders

Bank of Montreal’s board has declared a quarterly dividend of $1.67 per common share for the second quarter of fiscal 2026, holding the payout steady from the previous quarter. The bank also declared dividends on several series of Class B preferred shares, with all common and preferred dividends designated as eligible for Canadian tax purposes.

The common and preferred share dividends will be paid in late May 2026 to shareholders of record at the end of April, reinforcing BMO’s ongoing capital return to investors. Shareholders may choose to reinvest cash dividends in additional common shares through the bank’s dividend reinvestment and share purchase plan, with shares currently acquired on the open market and no discount applied, offering a straightforward option for long-term investors to compound holdings.

The most recent analyst rating on (TSE:BMO) stock is a Buy with a C$223.00 price target. To see the full list of analyst forecasts on Bank Of Montreal stock, see the TSE:BMO Stock Forecast page.

BMO Kicks Off 2026 With Double-Digit Earnings Growth and Record Revenue

BMO Financial Group reported a strong start to fiscal 2026, with first-quarter net income rising 16% year over year to $2.49 billion and adjusted earnings up 11%, driven by record revenue across all operating segments and lower provisions for credit losses. Return on equity improved on both a reported and adjusted basis, even as the bank absorbed severance costs tied to efficiency initiatives and integrated its recent Burgundy Asset Management acquisition.

Management highlighted disciplined expense control and operational efficiency as creating room for strategic investments in technology and talent, supporting BMO’s goal of elevating returns and sustaining profitable growth for clients and shareholders. The bank maintained its quarterly dividend at $1.67 per common share, up 5% from a year earlier, and continued to return capital through the repurchase of 6.0 million common shares, while preserving a strong CET1 capital ratio of 13.1%.

The most recent analyst rating on (TSE:BMO) stock is a Buy with a C$223.00 price target. To see the full list of analyst forecasts on Bank Of Montreal stock, see the TSE:BMO Stock Forecast page.

BMO Financial Group Reports Strong Fiscal 2025 Results

BMO Financial Group reported strong financial results for the fourth quarter and fiscal year 2025, with significant increases in adjusted net income and earnings per share compared to the previous year. The company demonstrated robust earnings growth and improved return on equity, driven by pre-provision, pre-tax earnings expansion and positive operating leverage. BMO’s strategic focus on digital and AI-powered solutions, along with its financial strength and talent acquisition, positions it well for continued growth and shareholder value creation in 2026.

The most recent analyst rating on (TSE:BMO) stock is a Hold with a C$181.00 price target. To see the full list of analyst forecasts on Bank Of Montreal stock, see the TSE:BMO Stock Forecast page.

BMO Increases Quarterly Dividend, Enhancing Shareholder Value

Bank of Montreal announced an increase in its quarterly dividend to $1.67 per common share, marking a 2% rise from the previous quarter and a 5% increase from the prior year. This decision reflects BMO’s strong financial performance and commitment to returning value to shareholders. The dividends are designated as eligible for tax purposes, and shareholders have the option to reinvest dividends in common shares through the bank’s Dividend Reinvestment and Share Purchase Plan.

The most recent analyst rating on (TSE:BMO) stock is a Hold with a C$181.00 price target. To see the full list of analyst forecasts on Bank Of Montreal stock, see the TSE:BMO Stock Forecast page.

Bank of Montreal Boosts Quarterly Dividend for Fiscal 2026

Bank of Montreal announced an increase in its quarterly dividend by 4 cents to $1.67 per share for the first quarter of fiscal year 2026, reflecting a 2 percent rise from the previous quarter and a 5 percent increase from the prior year. This move highlights BMO’s commitment to returning value to shareholders and strengthening its market position. The dividends are designated as eligible under Canadian tax legislation, and shareholders have the option to reinvest dividends through the bank’s dividend reinvestment plan.

The most recent analyst rating on (TSE:BMO) stock is a Hold with a C$181.00 price target. To see the full list of analyst forecasts on Bank Of Montreal stock, see the TSE:BMO Stock Forecast page.