BMO

Bank of Montreal

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Banks - Diversified

Exchange

NYSE

County of HQ

Canada

Next Earnings Date

05/27/26

Business Summary

BMO operates a diversified banking platform spanning retail banking, commercial lending, capital markets, and wealth management, monetizing spread income between deposits and loans while layering in fee-based advisory and transaction revenue. Its scale allows it to fund at competitive rates and redeploy capital across geographies and client segments, generating recurring net interest and non-interest income streams. The moat stems from entrenched client relationships, regulatory barriers to entry, and balance sheet scale that smaller institutions cannot easily replicate. Cash generation is driven by disciplined loan underwriting, cross-selling financial products, and leveraging its capital markets franchise to deepen corporate relationships.

VALUATION

P/E

16.7

Market Cap ($M USD)

$101,468

Forward P/E

8.9

PEG

1

PRICE TO SALES

3.9

PRICE TO BOOK

1.7

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

3.30%

Annual Payout

$4.88

Payout Ratio

75.50%

Consecutive Years of Dividend Growth

4

5-Year Dividend Growth Rate

9.50%

Financial Health & Profitability

Earnings Per Share

$8.63

Next Year EPS Growth Estimate

$16.14

Next Year Revenue Growth Estimate

4.30%

Return on Equity (ROE)

10.10%

Operating Margin

42.00%

Debt-to-Equity

3.2

Piotroski F-Score

5

Altman Z-Score

-

Return on Invested Capital (ROIC)

13.60%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 16.7x earnings with a Forward P/E of 8.9, BMO screens as materially cheaper on forward expectations, implying a sharp earnings ramp toward the $8.63 EPS estimate next year. A PEG Forward of 1 suggests the valuation is aligned with growth rather than stretched, and a 3.2% TTM yield compensates investors while they wait. However, the absence of an Altman Z-Score and a modest 4.30% Return on Equity temper the enthusiasm — this is not a high-efficiency compounder today, but the forward multiple compression suggests the market may be underpricing a cyclical earnings normalization rather than structural decay. Overall, the setup leans toward undervalued with improving forward optics, but not without balance sheet sensitivity.

AI Exposure / Tech Reliance

As a diversified bank within Financial Services, BMO operates in a sector aggressively integrating AI into underwriting, risk modeling, fraud detection, and customer acquisition. Banks that leverage data effectively can expand operating margin beyond the current 10.10% level through automation and credit optimization. Scale institutions listed on the NYSE with $101,468M in market cap are structurally positioned to absorb and deploy AI investments faster than regional competitors.

The Bull Case

A value-oriented GARP investor buys this because the forward valuation disconnect is obvious: a drop from 16.7x trailing to 8.9x forward earnings with a PEG of 1 signals growth at a reasonable price. ROIC at 13.60% meaningfully exceeds ROE at 4.30%, implying capital is being deployed more productively than equity returns alone suggest, and the 10.10% operating margin demonstrates core profitability resilience in a rate-sensitive industry. A Piotroski F-Score of 5 is neutral but stable — not distress territory — while the 3.2% yield and 4% five-year average dividend profile provide income support. With $101,468M in market cap and substantial institutional ownership at $152.13, this is a liquid, institutionally relevant name where multiple expansion from 8.9x forward earnings could drive asymmetric upside.

The Bear Case

The structural concerns are real. A 42.00% Debt/Equity ratio in a tightening credit environment amplifies downside if asset quality deteriorates, and the 9.50% short float signals a meaningful pocket of skepticism. Return on Equity at just 4.30% is weak for a bank, suggesting limited profitability relative to shareholder capital, while a 10.10% operating margin leaves limited buffer against credit losses. The payout ratio listed at $4.88 alongside a 3.30% dividend per share introduces ambiguity around capital allocation sustainability, and without an Altman Z-Score provided, balance sheet distress risk cannot be quantitatively dismissed.

Market Sentiment & Smart Money

Short Interest %

0.50%

Analyst Consensus

2.42

Average Analyst Price Target

$152.13

Institutional Ownership %

53.00%

1-Year Beta

0.79

Insider Buying % (6 Mo)

0.10%%

Distance to 52-Week High

96.90%%

Distance to 52-Week Low

161.20%%