Bank Of Montreal (BMO) AI Stock Analysis

• Market Cap: C$121.12B
• Dividend Yield: 4.08%
• Average Volume (3M): 2.89M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.24
• Revenue Growth: 1.78%
• EPS Growth: 32.32%
• Country: CA
• Employees: 53,597
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Diversified
• EPS (TTM): 3.23
• Shares Outstanding: 722,070,740
• 10 Day Avg. Volume: 2,342,707
• 30 Day Avg. Volume: 2,885,188
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$170.73
• Price Target Upside: 1.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 76 Outperform
• Price Target: C$178.00 ▲(6.12% Upside)

Bank of Montreal's strong financial performance, positive technical indicators, and robust earnings call results contribute to a solid stock score. The bank's strategic initiatives and attractive dividend yield further enhance its investment appeal. However, challenges in revenue growth and macroeconomic uncertainties in Canada are areas to watch.

Positive Factors

Capital Management

Management announced a new share repurchase program, indicating confidence in the bank's financial position and potential for value return to shareholders.

Financial Performance

Shares of BMO outperformed peers after reporting strong adjusted earnings per share, driven by lower credit costs in the US and stronger performance in Corporate and Wealth Management segments.

Revenue Growth

The bank's total revenues increased by 9.5% year-over-year, outpacing the growth in expenses and leading to strong pre-tax pre-provision profit growth.

Negative Factors

Analyst Rating

The analyst reiterates a Neutral rating, indicating a better relative risk/reward is seen elsewhere in the group.

Capital Markets Performance

Capital Markets' adjusted pre-tax, pre-provision earnings were below expectations, with expenses rising faster than revenues.

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 interest income from loans and mortgages, fees from various banking services, and investment management fees. The main revenue streams include interest from personal banking, commercial loans, and credit cards, which are supplemented by transaction and service fees from account management and advisory services. Additionally, BMO Capital Markets contributes to revenue through underwriting, trading, and advisory services, while its Wealth Management division earns fees from asset management and financial planning. Strategic partnerships and a strong retail presence enhance customer acquisition and retention, further driving revenue growth.

Bank Of Montreal Financial Statement Overview

Summary

Bank of Montreal maintains a strong financial foundation with solid profitability and efficient operations. However, challenges in revenue growth and a decrease in free cash flow warrant attention. The company's strategic use of leverage supports its growth, but a low equity ratio could amplify risks in adverse conditions.

Income Statement

The Bank of Montreal demonstrates a solid financial performance with a strong gross profit margin of 44.8% in TTM (Trailing-Twelve-Months), although there has been a decline in net profit margin to 12.4% due to increased expenses. Revenue growth has faced challenges, showing a decrease from the previous year, indicating potential issues with generating top-line growth. However, EBIT and EBITDA margins remain healthy, signifying operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 4.6, suggesting leverage is being used effectively. Return on equity stands at 9.6%, indicating decent profitability relative to equity. The equity ratio is relatively low at 6.0%, highlighting a reliance on debt, which may pose risks if market conditions worsen.

Cash Flow

Cash flow analysis reveals a significant decrease in free cash flow compared to the prior year, with a decline in free cash flow growth rate. Operating cash flow to net income ratio is healthy at 0.42, but the reduction in free cash flow may impact future flexibility in covering expenses or investing in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.71B	78.56B	29.02B	26.26B	26.91B	22.23B
Gross Profit	29.91B	28.28B	29.64B	25.95B	26.91B	25.02B
EBITDA	12.85B	11.18B	7.71B	19.00B	11.44B	7.61B
Net Income	8.26B	7.32B	4.42B	13.54B	7.75B	5.10B
Balance Sheet
Total Assets	1.44T	1.41T	1.29T	1.14T	988.17B	949.26B
Cash, Cash Equivalents and Short-Term Investments	174.51B	113.53B	114.31B	118.21B	121.97B	95.24B
Total Debt	394.61B	262.44B	248.74B	222.64B	189.81B	187.01B
Total Liabilities	1.35T	1.33T	1.22T	1.07T	930.65B	892.67B
Stockholders Equity	85.80B	84.25B	77.01B	71.04B	57.52B	56.59B
Cash Flow
Free Cash Flow	2.00B	27.47B	19.59B	3.51B	43.07B	49.80B
Operating Cash Flow	3.46B	29.03B	21.27B	4.96B	44.05B	50.84B
Investing Cash Flow	-10.98B	-24.53B	-21.16B	-29.47B	-299.00M	-31.97B
Financing Cash Flow	13.49B	-17.41B	268.00M	15.98B	47.12B	-10.30B

Bank Of Montreal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 167.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 167.74 is above the 20-day moving average (MA) of 158.62, above the 50-day MA of 154.58, and above the 200-day MA of 140.96, indicating a bullish trend. The MACD of 3.24 indicates Negative momentum. The RSI at 79.01 is Negative, neither overbought nor oversold. The STOCH value of 90.86 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMO	76 Outperform	C$121.12B	14.67	10.20%	4.08%	1.78%	32.32%
Sector *	68 Neutral	$17.79B	11.64	10.28%	3.76%	9.64%	1.17%
BNS	―	$77.29B	16.10	8.64%	4.94%	―	―
CM	―	$72.08B	12.97	13.40%	3.49%	―	―
RY	―	$204.14B	15.24	14.60%	2.93%	―	―
TD	―	$131.37B	9.02	17.36%	3.98%	―	―
NTIOF	―	$41.03B	14.22	13.25%	3.13%	―	―

Bank Of Montreal Corporate Events

BMO to Redeem $200 Million in Preferred Shares

Bank of Montreal announced its plan to redeem all 8,000,000 outstanding Non-Cumulative 5-Year Rate Reset Class B Preferred Shares, Series 33, for a total of $200 million on August 25, 2025. This move, approved by the Office of the Superintendent of Financial Institutions, reflects BMO’s strategic financial management and may impact shareholder returns with the final quarterly dividend to be paid separately.

The most recent analyst rating on (TSE:BMO) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on Bank Of Montreal stock, see the TSE:BMO Stock Forecast page.

BMO to Acquire Burgundy Asset Management, Enhancing Wealth Management Services

BMO has announced its acquisition of Burgundy Asset Management, a leading independent wealth manager with $27 billion in assets under management. This strategic move is expected to enhance BMO’s wealth management capabilities, particularly in the Canadian Investment Counsel space, and strengthen its position as a top provider for high-net-worth clients. The transaction, valued at approximately $625 million, is anticipated to close by the end of 2025, subject to regulatory approvals.

The most recent analyst rating on (TSE:BMO) stock is a Buy with a C$150.00 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 Strengthens Leadership with Key Executive Appointments

BMO Financial Group has announced several executive appointments aimed at enhancing client service and supporting growth ambitions in Canada and the U.S. These changes are designed to streamline decision-making, improve profitability, and foster innovation through leadership in AI, data, and cloud computing. The appointments reflect BMO’s commitment to talent development and strategic integration of its U.S. operations, with a focus on ethical performance and strong governance.

The most recent analyst rating on (TSE:BMO) stock is a Hold with a C$141.00 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 Boosts Quarterly Dividend by 3%

BMO Financial Group announced an increase in its quarterly dividend for common shares by 4 cents to $1.63 per share, marking a 3% rise from the previous quarter and a 5% increase from the prior year. This decision reflects BMO’s commitment to delivering value to its shareholders and may enhance its attractiveness to investors. The dividends for both common and preferred shares are scheduled for payment in August 2025, with the option for common shareholders to reinvest dividends through the bank’s Shareholder Dividend Reinvestment and Share Purchase Plan.

The most recent analyst rating on (TSE:BMO) stock is a Buy with a C$150.00 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 Q2 2025 Results with Increased Dividends

BMO Financial Group reported its second quarter 2025 financial results, showing an increase in both reported and adjusted net income compared to the previous year. The company achieved strong revenue and pre-tax earnings growth across its operating groups, despite a rise in provisions for credit losses. BMO’s robust capital position allowed it to increase its dividend and execute share buybacks, demonstrating resilience and commitment to shareholder returns.

The most recent analyst rating on (TSE:BMO) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on Bank Of Montreal stock, see the TSE:BMO Stock Forecast page.