Bank Of Montreal (BMO) AI Stock Analysis

• Market Cap: $108.97B
• Dividend Yield: 5.79%
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.22
• Revenue Growth: 6.98%
• EPS Growth: 32.63%
• Country: CA
• Employees: 53,597
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Diversified
• EPS (TTM): 2.62
• Shares Outstanding: 722,070,740
• 10 Day Avg. Volume: 2,118,907
• 30 Day Avg. Volume: 1,999,530
• PEG Ratio: 1.11
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.52
• 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: $154.40
• Price Target Upside: 1.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 72 Outperform
• Price Target: C$164.00 ▲(7.65%Upside)

Bank of Montreal has a solid overall position, bolstered by strong financial performance and strategic corporate events. While technical analysis is mixed, the valuation is appealing. The bank's strategic initiatives and robust earnings support a positive outlook, though economic uncertainties and credit risks require caution.

Positive Factors

Balance Sheet Optimization

Management's focus on balance sheet optimization, including the sale of a non-relationship credit card portfolio and running off higher cost deposits, is boosting net interest margins and return on equity.

Financial Performance

The stock outperformed peers after reporting stronger growth due to a narrower loss in the corporate segment and lower credit costs.

Negative Factors

Impaired Provisions

Impaired PCLs could trend up slightly, which was worse than expected but reasonable given the current climate.

Tariff Risks

Risks from tariffs could impact credit improvements, with potential rises in impaired provisions for credit losses.

Bank Of Montreal Business Overview & Revenue Model

Company Description

The Bank of Montreal (BMO) is a multinational financial services provider headquartered in Canada. It operates in several sectors including personal and commercial banking, wealth management, and capital markets. BMO offers a wide range of products and services, such as personal and business banking, investment solutions, mortgage loans, credit cards, and financial advisory services. With a strong presence in North America, BMO serves millions of customers through its extensive network of branches and ATMs, as well as digital banking platforms.

How the Company Makes Money

BMO makes money primarily through interest income and non-interest income. Interest income is generated from loans and mortgages offered to personal and commercial banking customers. The bank earns interest on the funds it lends, which is a major component of its revenue. Non-interest income comes from fees and commissions associated with various financial services, including wealth management, investment banking, and trading activities. BMO also benefits from its capital markets operations, which provide services such as underwriting, advisory, and trading solutions. Additionally, strategic partnerships and collaborations with financial technology firms and other institutions enhance its service offerings and contribute to its revenue growth.

Bank Of Montreal Financial Statement Overview

Summary

Bank of Montreal demonstrates a strong financial position with robust revenue growth and profitability. However, high leverage and a decline in free cash flow growth indicate areas for improvement.

Income Statement

The income statement shows a solid performance with a significant increase in total revenue from the previous year by 38.24% (TTM). The gross profit margin is robust, indicating efficient cost management. However, the EBIT margin is moderate at 6.96%, suggesting room for improvement in operational efficiency. The net profit margin is healthy at 18.42%, highlighting profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 3.13, which is typical for the banking industry but indicates high leverage. The equity ratio is 5.96%, suggesting a conservative level of equity financing. Return on Equity is a strong 9.32%, affirming effective use of shareholders' funds.

Cash Flow

The cash flow statement shows a decline in free cash flow growth rate compared to previous periods, indicating potential challenges in generating cash. The operating cash flow to net income ratio is 2.15, suggesting effective conversion of income to cash. However, the free cash flow to net income ratio of 1.96 indicates less cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.96B	32.04B	29.02B	26.26B	26.91B	22.23B
Gross Profit	29.56B	28.28B	29.64B	25.95B	26.91B	25.02B
EBITDA	12.65B	11.18B	7.71B	19.00B	11.44B	7.61B
Net Income	8.16B	7.32B	4.42B	13.54B	7.75B	5.10B
Balance Sheet
Total Assets	1.47T	1.41T	1.29T	1.14T	988.17B	949.26B
Cash, Cash Equivalents and Short-Term Investments	180.06B	113.53B	114.31B	118.21B	121.97B	95.24B
Total Debt	274.34B	262.44B	248.74B	222.64B	189.81B	187.01B
Total Liabilities	1.38T	1.33T	1.22T	1.07T	930.65B	892.67B
Stockholders Equity	87.56B	84.25B	77.01B	71.04B	57.52B	56.59B
Cash Flow
Free Cash Flow	16.02B	27.47B	7.91B	3.51B	43.07B	49.80B
Operating Cash Flow	17.57B	29.03B	9.59B	4.96B	44.05B	50.84B
Investing Cash Flow	-31.52B	-24.53B	-21.16B	-29.47B	-299.00M	-31.97B
Financing Cash Flow	7.31B	-17.41B	268.00M	15.98B	-5.12B	-10.30B

Bank Of Montreal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 152.35
• 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 152.35 is above the 20-day moving average (MA) of 147.20, above the 50-day MA of 142.46, and above the 200-day MA of 134.88, indicating a bullish trend. The MACD of 1.83 indicates Negative momentum. The RSI at 75.86 is Negative, neither overbought nor oversold. The STOCH value of 97.29 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
RY	81 Outperform	$250.61B	14.12	14.17%	4.52%	6.03%	15.60%
TD	79 Outperform	$174.21B	10.30	14.27%	4.19%	13.12%	61.99%
NA	78 Outperform	$55.02B	13.25	13.42%	3.36%	17.13%	14.73%
CM	77 Outperform	$89.27B	11.97	13.19%	4.01%	5.38%	21.68%
BMO	72 Outperform	$108.97B	14.01	9.88%	5.79%	6.98%	32.63%
BNS	71 Outperform	$93.62B	15.17	8.00%	7.71%	3.72%	-17.99%
Sector *	67 Neutral	$16.86B	11.64	9.71%	3.83%	11.61%	-9.60%

Bank Of Montreal Corporate Events

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.

BMO Announces Redemption of $1.25 Billion Series J Notes

Bank of Montreal (BMO) announced its intention to redeem its $1,250 million Series J Medium-Term Notes on June 17, 2025. This redemption, approved by the Office of the Superintendent of Financial Institutions, will be executed at a price equal to 100% of the principal amount plus accrued interest, ceasing further interest accrual post-redemption. This move may impact BMO’s financial strategy and stakeholder interests, aligning with its broader commitment to sustainable financial practices.

Bank of Montreal to Redeem $1.25 Billion Series J Notes

Bank of Montreal announced its intention to redeem $1,250 million of its Series J Medium-Term Notes on June 17, 2025. This move, approved by the Office of the Superintendent of Financial Institutions, will affect the company’s financial operations by ceasing interest accrual on the notes after the redemption date.