BMO:CA:TSX-Bank of Montreal (CAD)

COMMON STOCK | Banks—Diversified | TSX

Last Closing Price

CAD 97.04

Change

-0.24 (-0.25)%

Market Cap

CAD 62.53B

Volume

3.41M

Average Target Price

CAD 83.20 (-14.26%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Bank of Montreal provides diversified financial services primarily in North America. It operates through three groups: Personal and Commercial Banking, BMO Wealth Management, and BMO Capital Markets. 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, and specialized banking programs for small business and commercial banking customers. It also offers wealth management products and services, such as investment and wealth advisory services; digital investing services; financial services and solutions to high net worth and ultra-high net worth clients; and investment management, and trust and custody services to institutional, retail, and high net worth investors. In addition, the company provides life insurance, accident and sickness insurance, and annuity products to brokers and individuals; creditor and travel insurance to bank customers; and reinsurance solutions. Further, it offers investment and corporate banking services, including client's debt and equity capital-raising services, as well as loan origination and syndication, balance sheet management, 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; 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. The company was founded in 1817 and is headquartered in Montreal, Canada.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-11-25 )

Largest Industry Peers for Banks—Diversified

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
RY-PZ:CA Royal Bank of Canada

+0.09 (+0.48%)

CAD162.95B 1.45 N/A
RY:CA Royal Bank of Canada

N/A

CAD153.19B 13.41 N/A
RY-PC:CA Royal Bank of Canada

N/A

CAD149.96B 2.64 N/A
RY-PE:CA Royal Bank of Canada

N/A

CAD149.54B 2.61 N/A
RY-PQ:CA Royal Bank of Canada

+0.06 (+0.24%)

CAD147.20B 2.42 N/A
TD:CA The Toronto-Dominion Bank

-0.11 (-0.15%)

CAD128.99B 12.50 N/A
BNS:CA The Bank of Nova Scotia

+0.20 (+0.31%)

CAD78.91B 10.06 N/A
CM:CA Canadian Imperial Bank of Comm..

+0.41 (+0.37%)

CAD49.53B 12.32 N/A
NA:CA National Bank of Canada

+0.27 (+0.37%)

CAD24.62B 11.75 N/A
NA-PS:CA National Bank of Canada

+0.08 (+0.44%)

CAD22.35B 1.90 N/A

ETFs Containing BMO:CA

Symbol Name Weight Mer Price(Change) Market Cap
CEW WisdomTree Emerging Curre.. 0.00 % 0.55 %

+0.07 (+0.39%)

CAD0.01B
ZEB:CA BMO Equal Weight Banks In.. 0.00 % 0.55 %

+0.03 (+0.10%)

CAD1.27B
RQN:CA RBC Target 2025 Corporate.. 0.00 % 0.30 %

-0.03 (-0.14%)

CAD0.07B
HCB:CA Hamilton Canadian Bank Va.. 0.00 % 0.65 %

N/A

CAD0.01B
DRMC:CA Desjardins RI Canada - Lo.. 0.00 % 0.25 %

+0.03 (+0.14%)

CAD9.60M
RQL:CA RBC Target 2024 Corporate.. 0.00 % 0.28 %

N/A

CAD0.07B
RMBO:CA RBC 6-10 year Laddered Ca.. 0.00 % 0.25 %

N/A

CAD4.36M
RPSB:CA RBC PH&N Short Term Canad.. 0.00 % 0.35 %

-0.05 (-0.24%)

CAD0.05B
ZVC:CA BMO MSCI Canada Value Ind.. 0.00 % 0.35 %

+0.58 (+3.15%)

CAD2.57M
RBNK:CA RBC Canadian Bank Yield I.. 0.00 % 0.32 %

+0.01 (+0.05%)

CAD0.08B
FLRM:CA Franklin Liberty Risk Man.. 0.00 % 0.30 %

+0.09 (+0.42%)

CAD9.72M
MCLC:CA Manulife Multifactor Cana.. 0.00 % 0.45 %

-0.04 (-0.15%)

CAD0.20B
BNC:CA Purpose Canadian Financia.. 0.00 % 0.68 %

N/A

CAD2.63M
QCD:CA AGFiQ Canadian Equity ETF 0.00 % 0.45 %

-0.01 (-0.04%)

CAD0.08B
ZWB:CA BMO Covered Call Canadian.. 0.00 % 0.65 %

-0.01 (-0.06%)

CAD1.61B
XFN:CA iShares S&P/TSX Cappe.. 0.00 % 0.55 %

-0.19 (-0.49%)

CAD0.84B
CEW:CA iShares Equal Weight Banc.. 0.00 % 0.55 %

-0.07 (-0.54%)

CAD0.13B
XEN:CA iShares Jantzi Social Ind.. 0.00 % 0.50 %

N/A

CAD0.09B
XDV:CA iShares Canadian Select D.. 0.00 % 0.50 %

-0.05 (-0.20%)

CAD1.15B
XCV:CA iShares Canadian Value In.. 0.00 % 0.50 %

-0.16 (-0.65%)

CAD0.04B
VDY:CA Vanguard FTSE Canadian Hi.. 0.00 % 0.20 %

-0.03 (-0.09%)

CAD0.60B
TTP:CA TD Canadian Equity Index .. 0.00 % 0.05 %

+0.03 (+0.15%)

CAD0.79B
RQJ:CA RBC Target 2022 Corporate.. 0.00 % 0.25 %

N/A

CAD0.07B
RQI:CA RBC Target 2021 Corporate.. 0.00 % 0.25 %

N/A

CAD0.09B
RQH:CA RBC Target 2020 Corporate.. 0.00 % 0.25 %

N/A

CAD0.02B
PXC:CA Invesco FTSE RAFI Canadia.. 0.00 % 0.45 %

-0.11 (-0.42%)

CAD0.21B
PDC:CA Invesco Canadian Dividend.. 0.00 % 0.50 %

+0.07 (+0.27%)

CAD0.59B
HAL:CA Horizons Active Cdn Divid.. 0.00 % 0.55 %

+0.07 (+0.42%)

CAD0.07B
HAL Halliburton Company 0.00 % 0.00 %

-0.05 (-0.28%)

CAD15.83B
FIE:CA iShares Canadian Financia.. 0.00 % 0.65 %

-0.02 (-0.29%)

CAD0.66B
CIC:CA CI First Asset CanBanc In.. 0.00 % 0.65 %

-0.05 (-0.47%)

CAD0.14B
XESG:CA iShares ESG MSCI Canada I.. 0.00 % 0.23 %

+0.06 (+0.28%)

CAD0.03B

Market Performance

  Market Performance vs.
Industry/Classification (Banks—Diversified)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -3.58% 20% F 41% F
Dividend Return 3.16% 80% B- 80% B-
Total Return -0.42% 40% F 46% F
Trailing 12 Months  
Capital Gain -4.97% 30% F 36% F
Dividend Return 3.11% 80% B- 72% C-
Total Return -1.86% 30% F 39% F
Trailing 5 Years  
Capital Gain 26.62% 50% F 61% D-
Dividend Return 23.46% 50% F 76% C
Total Return 50.08% 67% D+ 70% C-
Average Annual (5 Year Horizon)  
Capital Gain 2.90% N/A N/A 61% D-
Dividend Return 3.88% N/A N/A 81% B-
Total Return 6.78% N/A N/A 67% D+
Risk Return Profile  
Volatility (Standard Deviation) 16.56% N/A N/A 45% F
Risk Adjusted Return 40.98% N/A N/A 60% D-
Market Capitalization 62.53B 44% F 99% A+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Banks—Diversified)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 11.69 56% F 67% D+
Price/Book Ratio 1.06 100% A+ 62% D-
Price / Cash Flow Ratio 2.13 89% B+ 72% C-
EV/EBITDA N/A N/A N/A N/A N/A
Management Effectiveness  
Return on Equity 8.95% 10% F 70% C-
Return on Invested Capital 5.06% 70% C- 53% F
Return on Assets 0.52% 10% F 45% F
Debt to Equity Ratio 57.55% 20% F 45% F
Technical Ratios  
Short Ratio 3.82 83% B 24% F
Short Percent N/A N/A N/A N/A N/A
Beta 1.05 30% F 49% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

What to not like:
Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.