Bank Of Montreal (BMO) AI Stock Analysis

• Market Cap: $98.41B
• Dividend Yield: 4.59%
• Average Volume (3M): 4.09M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.20
• Revenue Growth: 10.57%
• EPS Growth: 50.35%
• Country: CA
• Employees: 53,597
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Diversified
• EPS (TTM): 3.04
• Shares Outstanding: 728,763,550
• 10 Day Avg. Volume: 5,380,530
• 30 Day Avg. Volume: 4,089,433
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $150.27
• Price Target Upside: 10.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Bank of Montreal's stock score reflects its robust financial performance, particularly in revenue growth and dividend yield, despite high leverage. The technical indicators suggest some caution, while valuation metrics remain favorable. The earnings call provides a positive outlook, albeit with some economic uncertainties. These factors combined result in a solid, albeit moderate, overall score.

Positive Factors

Capital Management

A robust capital position and significant accretion point to further buyback activity, suggesting strong financial health and potential for increased shareholder value.

Earnings

BMO reported a significant Q1 earnings beat, combining better-than-expected credit with strong revenue growth across all its business lines.

Wealth Management

Wealth Management & Insurance exceeded expectations with a substantial increase in revenue and net income, driven by favorable market movements and strong asset growth.

Negative Factors

Credit Losses

BMO reported Q4 results with EPS below estimates due to higher provisions for credit losses, which were significantly above forecasted levels.

Investor Confidence

Need to regain investor confidence after Q4/24 results.

Bank Of Montreal Business Overview & Revenue Model

Company Description

Bank of Montreal provides diversified financial services primarily in North America. 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, specialized banking programs, treasury and payment solutions, and risk management products for small business and commercial banking customers. It also offers investment and wealth advisory services; digital investing services; financial services and solutions; and investment management, and trust and custody services. In addition, the company provides life insurance, accident and sickness insurance, and annuity products; creditor and travel insurance to bank customers; and reinsurance solutions. Further, it offers client's debt and equity capital-raising services, as well as loan origination and syndication, 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; trading solutions that include debt, foreign exchange, interest rate, credit, equity, securitization and commodities; 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. It operates through approximately 900 bank branches and 3,300 automated banking machines in Canada and the United States. Bank of Montreal was founded in 1817 and is headquartered in Montreal, Canada.

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 overall financial position with stable revenue growth and profitability. The company's effective cash conversion is notable, though high leverage and moderate EBIT margin indicate areas for improvement. Continued focus on operational efficiency and cash flow management will be crucial for sustaining growth.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
32.04B	29.02B	26.26B	26.91B	25.02B
	Gross Profit
32.04B	33.05B	26.26B	26.91B	25.02B
	EBIT
11.18B	10.30B	28.90B	10.26B	6.35B
	EBITDA
11.18B	7.71B	19.00B	11.44B	7.61B
	Net Income Common Stockholders
7.32B	4.37B	13.54B	7.75B	5.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
113.53B	114.31B	118.21B	121.97B	95.24B
	Total Assets
1.41T	1.29T	1.14T	988.17B	949.26B
	Total Debt
262.44B	248.74B	222.64B	189.81B	187.01B
	Net Debt
193.70B	166.69B	129.44B	88.24B	120.57B
	Total Liabilities
1.33T	1.22T	1.07T	930.65B	892.67B
	Stockholders Equity
84.25B	77.01B	71.04B	57.52B	56.59B
Cash Flow		Free Cash Flow
27.47B	7.91B	3.51B	43.07B	49.80B
	Operating Cash Flow
29.03B	9.59B	4.96B	44.05B	50.84B
	Investing Cash Flow
-24.53B	-21.16B	-29.47B	-299.00M	-31.97B
	Financing Cash Flow
-17.41B	268.00M	15.98B	-5.12B	-10.30B

Bank Of Montreal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 135.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 135.8 is above the 20-day moving average (MA) of 129.94, above the 50-day MA of 134.54, and above the 200-day MA of 128.28, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 91.69 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
BMO	71 Outperform	$98.41B	12.71	10.01%	4.59%	10.57%	50.35%
Sector *	64 Neutral	$12.51B	9.81	7.92%	16985.69%	12.67%	-5.98%

Bank Of Montreal Corporate Events

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.

Spark’s Take on TSE:BMO Stock

According to Spark, TipRanks’ AI Analyst, TSE:BMO is a Outperform.

Bank of Montreal’s stock score reflects its robust financial performance, particularly in revenue growth and dividend yield, despite high leverage. The technical indicators suggest some caution, while valuation metrics remain favorable. The earnings call provides a positive outlook, albeit with some economic uncertainties. These factors combined result in a solid, albeit moderate, overall score.

To see Spark’s full report on TSE:BMO stock, click here.

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.

Spark’s Take on TSE:BMO Stock

According to Spark, TipRanks’ AI Analyst, TSE:BMO is a Outperform.

Bank of Montreal’s stock score reflects its robust financial performance, particularly in revenue growth and dividend yield, despite high leverage. The technical indicators suggest some caution, while valuation metrics remain favorable. The earnings call provides a positive outlook, albeit with some economic uncertainties. These factors combined result in a solid, albeit moderate, overall score.

To see Spark’s full report on TSE:BMO stock, click here.

BMO Financial Group Reports Strong Q1 2025 Results with Increased Dividend

BMO Financial Group reported strong financial results for the first quarter of 2025, with a significant increase in net income and earnings per share compared to the previous year. The company demonstrated positive operating leverage across its operating groups, supported by broad-based revenue growth and a decline in provisions for credit losses. BMO also announced a 5% increase in its quarterly dividend and initiated a share buyback program, reflecting its solid financial position and commitment to returning value to shareholders.

BMO Declares Stable Dividends for Q2 2025

Bank of Montreal has announced that its Board of Directors declared a quarterly dividend of $1.59 per share on its common shares for the second quarter of fiscal year 2025, maintaining the same level as the previous quarter. Additionally, dividends were declared on several series of Class B Preferred Shares. These dividends are designated as ‘eligible’ for Canadian tax purposes, and shareholders have the option to reinvest their dividends through the bank’s Shareholder Dividend Reinvestment and Share Purchase Plan. This announcement reflects BMO’s stable financial performance and commitment to providing consistent returns to its shareholders.