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

COMMON STOCK | Banks—Diversified | TSX

Last Closing Price

CAD 64.14

Change

0.00 (0.00)%

Market Cap

CAD 41.03B

Volume

2.60M

Average Target Price

CAD 89.15 (+39.00%)
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: 2020-05-24 )

Largest Industry Peers for Banks—Diversified

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

N/A

CAD148.94B 2.64 N/A
RY-PE:CA Royal Bank of Canada

N/A

CAD148.83B 2.61 N/A
RY-PQ:CA Royal Bank of Canada

N/A

CAD140.30B 2.42 N/A
RY-PZ:CA Royal Bank of Canada

N/A

CAD127.59B 1.45 N/A
RY:CA Royal Bank of Canada

N/A

CAD117.15B 9.56 N/A
TD:CA The Toronto-Dominion Bank

N/A

CAD100.45B 8.63 N/A
BNS:CA The Bank of Nova Scotia

N/A

CAD61.97B 7.58 N/A
CM:CA Canadian Imperial Bank of Comm..

N/A

CAD36.63B 7.38 N/A
NA:CA National Bank of Canada

N/A

CAD17.61B 8.33 N/A
NA-PS:CA National Bank of Canada

N/A

CAD17.51B 1.90 N/A

ETFs Containing BMO:CA

Symbol Name Weight Mer Price(Change) Market Cap
HCB:CA Hamilton Canadian Bank Va.. 24.24 % 0.65 %

N/A

CAD7.98M
ZEB:CA BMO Equal Weight Banks In.. 17.01 % 0.55 %

N/A

CAD1.02B
RBNK:CA RBC Canadian Bank Yield I.. 14.90 % 0.32 %

N/A

CAD0.06B
CIC:CA CI First Asset CanBanc In.. 14.16 % 0.65 %

N/A

CAD0.14B
ZWB:CA BMO Covered Call Canadian.. 12.20 % 0.65 %

N/A

CAD1.43B
CEW:CA iShares Equal Weight Banc.. 9.57 % 0.55 %

N/A

CAD0.11B
BNC:CA Purpose Canadian Financia.. 8.86 % 0.68 %

N/A

CAD4.13M
XDIV:CA iShares Core MSCI Canadia.. 8.55 % 0.10 %

N/A

CAD0.21B
FIE:CA iShares Canadian Financia.. 7.76 % 0.65 %

N/A

CAD0.57B
XFN:CA iShares S&P/TSX Cappe.. 7.53 % 0.55 %

N/A

CAD0.85B
PDC:CA Invesco Canadian Dividend.. 7.29 % 0.50 %

N/A

CAD0.60B
HEF:CA Horizons Enhanced Income .. 7.21 % 0.65 %

N/A

CAD0.01B
XEN:CA iShares Jantzi Social Ind.. 6.86 % 0.50 %

N/A

CAD0.18B
RQL:CA RBC Target 2024 Corporate.. 6.73 % 0.28 %

N/A

CAD0.06B
XCV:CA iShares Canadian Value In.. 6.32 % 0.50 %

N/A

CAD0.05B
RQH:CA RBC Target 2020 Corporate.. 6.28 % 0.25 %

N/A

CAD0.02B
RQN:CA RBC Target 2025 Corporate.. 6.02 % 0.30 %

N/A

CAD0.07B
XDV:CA iShares Canadian Select D.. 5.61 % 0.50 %

N/A

CAD1.12B
RQJ:CA RBC Target 2022 Corporate.. 5.58 % 0.25 %

N/A

CAD0.07B
VDY:CA Vanguard FTSE Canadian Hi.. 5.52 % 0.20 %

N/A

CAD0.52B
XEI:CA iShares S&P/TSX Compo.. 4.87 % 0.20 %

N/A

CAD0.56B
RQI:CA RBC Target 2021 Corporate.. 4.29 % 0.25 %

N/A

CAD0.19B
DRMC:CA Desjardins RI Canada - Lo.. 4.04 % 0.25 %

N/A

CAD0.01B
PXC:CA Invesco FTSE RAFI Canadia.. 4.03 % 0.45 %

N/A

CAD0.19B
ZVC:CA BMO MSCI Canada Value Ind.. 4.01 % 0.35 %

N/A

CAD2.46M
DXM:CA CI First Asset Morningsta.. 3.65 % 0.60 %

N/A

CAD9.82M
XESG:CA iShares ESG MSCI Canada I.. 3.35 % 0.23 %

N/A

CAD0.02B
VCE:CA Vanguard FTSE Canada Inde.. 3.15 % 0.05 %

N/A

CAD0.62B
RPSB:CA RBC PH&N Short Term Canad.. 3.14 % 0.35 %

N/A

CAD0.04B
QCD:CA AGFiQ Canadian Equity ETF 3.09 % 0.45 %

N/A

CAD0.08B
RMBO:CA RBC 6-10 year Laddered Ca.. 3.05 % 0.25 %

N/A

CAD4.21M
FLRM:CA Franklin Liberty Risk Man.. 2.98 % 0.30 %

N/A

CAD0.01B
MCLC:CA Manulife Multifactor Cana.. 2.79 % 0.45 %

N/A

CAD0.05B
TTP:CA TD Canadian Equity Index .. 2.69 % 0.05 %

N/A

CAD0.42B
VCN:CA Vanguard FTSE Canada All .. 2.58 % 0.05 %

N/A

CAD2.24B
HAL Halliburton Company 0.00 % 0.00 %

N/A

CAD10.17B
CEW WisdomTree Emerging Curre.. 0.00 % 0.55 %

N/A

CAD0.02B
PICB Invesco International Cor.. 0.00 % 0.50 %

N/A

CAD0.11B

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 -36.27% 9% F 16% F
Dividend Return 1.05% 50% F 81% B-
Total Return -35.21% 9% F 17% F
Trailing 12 Months  
Capital Gain -38.09% 17% F 20% F
Dividend Return 3.01% 50% F 83% B
Total Return -35.08% 17% F 21% F
Trailing 5 Years  
Capital Gain -18.08% 33% F 45% F
Dividend Return 22.35% 67% D+ 80% B-
Total Return 4.27% 33% F 53% F
Average Annual (5 Year Horizon)  
Capital Gain 5.97% 60% D- 73% C
Dividend Return 3.99% 60% D- 79% C+
Total Return 9.97% 60% D- 77% C+
Risk Return Profile  
Volatility (Standard Deviation) 14.92% 40% F 57% F
Risk Adjusted Return 66.82% 60% D- 89% B+
Market Capitalization 41.03B 36% F 98% 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 7.59 36% F 77% C+
Price/Book Ratio 0.91 100% A+ 57% F
Price / Cash Flow Ratio 1.40 100% A+ 76% C
EV/EBITDA N/A N/A N/A N/A N/A
Management Effectiveness  
Return on Equity 11.74% 9% F 77% C+
Return on Invested Capital 6.14% 64% D 58% F
Return on Assets 0.69% 9% F 45% F
Debt to Equity Ratio 13.70% 9% F 79% C+
Technical Ratios  
Short Ratio 2.86 71% C- 28% F
Short Percent N/A N/A N/A N/A N/A
Beta 1.02 27% F 48% 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.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

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.