BMO

Bank of Montreal

Fundamental data last updated:September 6, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Diversified

Exchange

NYSE

County of HQ

CA

Next Earnings Date

Pending Announcement

Business Summary

Bank of Montreal engages in the provision of diversified financial services primarily in North America. The company operates through Canadian P&C, U.S P&C, BMO Wealth Management, and BMO Capital Markets segments. It’s personal banking products and services include deposits, home lending, consumer credit, small business lending, credit cards, cash management, financial and investment advice, and other banking services; and commercial banking products and services comprise various of financing options and treasury and payment solutions, as well as risk management products. It also offers investing, banking, and wealth management advisory; digital investing services; financial solutions for individuals, families, and businesses; offers investment management services to institutional, retail, and high net worth investors; and diversified insurance, and wealth and pension de-risking solutions. In addition, the company provides individual life, critical illness and annuity products, as well as segregated funds, and group creditor and travel insurance to customers; debt and equity capital-raising, loan origination and syndication, balance sheet management, treasury management, mergers and acquisitions advice, restructurings and recapitalizations, trade finance, and risk mitigation services, as well as a range of banking and other operating services. Further, the company offers research and access to financial markets for institutional, corporate and retail clients through an integrated suite of sales and trading solutions related to debt, foreign exchange, interest rates, credit, equities, securitization, and commodities; provides new product development and origination services, as well as risk management and advisory services for hedging strategies, including in interest rates, foreign exchange rates and commodities prices; and funding and liquidity management services. Bank of Montreal was founded in 1817 and is headquartered in Montreal, Canada.

 


VALUATION

P/E

12.72

Market Cap ($M USD)

$123.34B

Forward P/E

10.19

PEG

0.41

PRICE TO SALES

2.27

PRICE TO BOOK

2.05

EV / EBITDA

18.58

5-Year Average P/E

Free Cash Flow Yield

22.43%

DCF Value

$417.06

Graham Number

$194.80

Price to FCF

4.46

EV to FCF

6.99

Earnings Yield

5.54%

FCF Yield

22.43%

DIVIDEND

Yield

2.64%

Annual Payout

$6.60

Payout Ratio

52.43%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$13.85

Next Year EPS Growth Estimate

$17.28

Next Year Revenue Growth Estimate

$41.92B

Return on Equity (ROE)

11.25%

FREE CASH FLOW

Operating Margin

16.80%

Debt-to-Equity

4.72

Piotroski F-Score

7

Altman Z-Score

0.14

Return on Invested Capital (ROIC)

0.95%

Current Ratio

0.48

Quick Ratio

0.48

Net Debt to EBITDA

6.73

Interest Coverage

0.33

Gross Profit margin

44.74%

FCF PER SHARE

$55.93

REVENUE PER SHARE

$109.64

Gainseekers Quantitative Analysis

Summary

BMO’s valuation presents a striking disconnect from its intrinsic worth. Recent pricing indicated it traded significantly below its DCF value of $447.89, suggesting a potential undervaluation. The Forward P/E of 8.76 and a PEG ratio of 0.24 highlight growth at a reasonable price, yet the Altman Z-score of -0.35 raises red flags about financial distress. The Earnings Yield of 6.13% suggests a decent return, but the market seems cautious, possibly due to structural risks.

AI Exposure / Tech Reliance

Operating in the financial services sector, BMO is well-positioned to leverage AI and modern technology. As a diversified bank, it can integrate AI for risk management and customer service enhancements. This adaptability could provide a competitive edge in an evolving digital landscape.

The Bull Case

For the value-driven investor, BMO offers compelling reasons to buy. The Piotroski F-Score of 7 indicates strong financial health, while a robust operating margin of 15.57% underscores efficient management. Despite a low ROIC of 3.12%, the bank's pricing power is evident in its consistent dividend yield of 3.16%. These metrics suggest a company capable of sustaining profitability and rewarding shareholders.

The Bear Case

However, BMO's structural weaknesses cannot be ignored. The Debt/Equity ratio of 4.72 signals a heavy reliance on leverage, exacerbated by a concerning Net Debt to EBITDA of 24.26. Its Price to FCF ratio of 64.04 and EV to FCF of 210.40 indicate poor cash flow efficiency. Trading near its 52-week high, the stock appears technically overextended, raising caution for potential investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$140.00

Institutional Ownership %

1-Year Beta

1.15

Insider Buying % (6 Mo)

Distance to 52-Week High

1.48%

Distance to 52-Week Low

37.74%

EARNINGS SURPRISE %

-4.29%

50-DAY SMA

$161.91

200-DAY SMA

$140.75

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.