Bank Of Montreal (TSE:BMO)
NYSE:BMO
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Bank Of Montreal
(NYSE:BMO)
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Rating:72Outperform
Price Target:
C$250.00
â–²(20.11% Upside)
Action:Upgraded
Date:05/28/26
Overall score is driven primarily by above-average financial performance with improving TTM profitability and cash generation, plus a constructive earnings-call outlook (ROE trajectory, strong capital position, and cost-savings plan). Technicals add support via a strong uptrend, tempered by overbought readings. Valuation is supportive with a moderate P/E and solid dividend yield, while balance-sheet leverage and some credit/expense risks keep the score from being higher.
Positive Factors
Strong Capital Position
A CET1 ratio near 13% gives BMO durable loss-absorbing capacity and capital flexibility for buybacks, dividends and selective growth. Maintaining capital above target supports regulatory resilience and funds strategic investments without forcing asset sales or dilutive capital raises over the medium term.
Negative Factors
Elevated Leverage
A high debt-to-equity ratio signals capital-structure sensitivity: leverage amplifies earnings volatility and constrains regulatory and strategic flexibility. In stressed market conditions or through underwriting losses, elevated leverage can force tighter capital management or slower growth to preserve CET1 buffers.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Capital Position
A CET1 ratio near 13% gives BMO durable loss-absorbing capacity and capital flexibility for buybacks, dividends and selective growth. Maintaining capital above target supports regulatory resilience and funds strategic investments without forcing asset sales or dilutive capital raises over the medium term.
Read all positive factors
Bank Of Montreal (BMO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$159.27B
Dividend Yield3.61%
Average Volume (3M)2.95M
Price to Earnings (P/E)16.1
Beta (1Y)1.04
Revenue Growth-4.35%
EPS Growth21.22%
CountryCA
Employees53,597
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)13.06
Shares Outstanding706,195,740
10 Day Avg. Volume2,546,141
30 Day Avg. Volume2,954,880
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$226.50Price Target Upside8.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)14.43
Revenue Forecast (FY)C$38.78B
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 mainly from (1) net interest income, (2) non-interest (fee-based) income, and (3) trading/investment-related income, with results influenced by credit performance and market conditions.
1) Net interest income (core banking s...
Bank Of Montreal Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 25, 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
74
Positive
Balance Sheet
63
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 77.04B | 78.15B | 78.56B | 29.02B | 26.26B | 26.91B |
| Gross Profit | 34.47B | 32.48B | 28.28B | 29.64B | 25.95B | 26.91B |
| EBITDA | 14.20B | 12.39B | 11.18B | 7.71B | 19.09B | 11.44B |
| Net Income | 9.73B | 8.71B | 7.32B | 4.42B | 13.54B | 7.75B |
Balance Sheet | ||||||
| Total Assets | 1.50T | 1.48T | 1.41T | 1.29T | 1.14T | 988.17B |
| Cash, Cash Equivalents and Short-Term Investments | 63.82B | 104.16B | 113.53B | 114.31B | 118.21B | 121.97B |
| Total Debt | 132.21B | 415.19B | 262.44B | 248.74B | 222.64B | 189.81B |
| Total Liabilities | 1.41T | 1.39T | 1.33T | 1.22T | 1.07T | 930.65B |
| Stockholders Equity | 85.57B | 88.05B | 84.25B | 77.01B | 71.04B | 57.52B |
Cash Flow | ||||||
| Free Cash Flow | 39.30B | 8.51B | 27.47B | 19.59B | 3.51B | 43.07B |
| Operating Cash Flow | 41.06B | 10.24B | 29.03B | 21.27B | 4.96B | 44.05B |
| Investing Cash Flow | -38.62B | 605.00M | -24.53B | -21.16B | -29.47B | -299.00M |
| Financing Cash Flow | -2.93B | -8.67B | -17.41B | 268.00M | 15.98B | 47.12B |
Bank Of Montreal Technical Analysis
Positive
208.15
Price Trends
201.75
Positive
195.55
Positive
182.89
Positive
Market Momentum
5.95
Negative
75.60
Negative
94.02
Negative
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 208.15 is below the 20-day moving average (MA) of 212.26, above the 50-day MA of 201.75, and above the 200-day MA of 182.89, indicating a bullish trend. The MACD of 5.95 indicates Negative momentum. The RSI at 75.60 is Negative, neither overbought nor oversold. The STOCH value of 94.02 is Negative, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$159.27B | 16.11 | 11.25% | 3.61% | -4.35% | 21.22% | |
72 Outperform | C$365.41B | 17.34 | 15.37% | 2.58% | 1.99% | 22.50% | |
71 Outperform | C$78.96B | 17.00 | 12.83% | 2.64% | 6.36% | 7.80% | |
70 Outperform | C$147.83B | 14.91 | 14.75% | 3.07% | -3.32% | 27.25% | |
68 Neutral | C$137.51B | 14.18 | 11.06% | 4.32% | -5.52% | 47.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | C$262.09B | 12.04 | 17.26% | 3.34% | -11.69% | -11.99% |
* Financial Sector Average
TSE:BMO
Bank Of Montreal
223.12
81.06
57.06%
TSE:BNS
Bank Of Nova Scotia
110.07
40.15
57.42%
TSE:CM
Canadian Bank of Commerce
150.96
60.79
67.42%
TSE:RY
Royal Bank Of Canada
260.54
91.72
54.33%
TSE:TD
Toronto Dominion Bank
156.18
64.76
70.84%
TSE:NA
National Bank of Canada
202.84
71.82
54.81%
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.