Want to see TSE:BMO full AI Analyst Report?
Top Page
Bank Of Montreal
(TSX:BMO)
Select Model
Select Model
Rating:64Neutral
Price Target:
C$257.00
â–²(7.11% Upside)
Action:Reiterated
Date:08/26/26
The score is driven primarily by mid-quality fundamentals (improving profitability and strong current cash generation, but leverage/cash-flow-to-debt volatility) and weak near-term technical momentum (below key moving averages with negative MACD). These are partially offset by a positive earnings call with reiterated guidance, strong capital position and buyback authorization, plus a reasonable P/E and moderate dividend yield.
Positive Factors
Diversified revenue and fee growth
Growth across banking, wealth management and capital markets reduces dependence on any single earnings stream. Rising fee income and client assets can provide recurring revenue and complement interest-sensitive banking income over the medium term.
Negative Factors
Volatile leverage and debt capacity
Although TTM leverage improved, historical swings and modest operating cash flow relative to debt indicate sensitivity to funding and cash-flow conditions. This can constrain financial flexibility if credit losses rise or earnings weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue and fee growth
Growth across banking, wealth management and capital markets reduces dependence on any single earnings stream. Rising fee income and client assets can provide recurring revenue and complement interest-sensitive banking income over the medium term.
Read all positive factors
Bank Of Montreal (BMO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$169.47B
Dividend Yield2.8%
Average Volume (3M)1.87M
Price to Earnings (P/E)19.4
Beta (1Y)0.91
Revenue Growth-1.74%
EPS Growth7.63%
CountryCA
Employees53,234
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)12.30
Shares Outstanding706,195,740
10 Day Avg. Volume1,778,846
30 Day Avg. Volume1,874,424
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)1.43
Price to Sales (P/S)1.61
P/FCF Ratio14.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$261.73Price Target Upside9.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)14.59
Revenue Forecast (FY)C$38.93B
Bank Of Montreal Business Overview & Revenue Model
Company Description
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...
How the Company Makes Money
BMO generates revenue primarily through a mix of net interest income and non-interest income across its operating segments. (1) Net interest income (spread-based banking): A core earnings driver is the spread between interest earned on interest-be...
Bank Of Montreal Earnings Call Summary
Earnings Call Date:Aug 25, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call highlighted broad-based, multi-segment operating strength: double-digit revenue growth, record PPPT across all businesses, improving returns (ROE to 14%), strong capital metrics and credit improvement. Management also outlined strategic portfolio optimization (dispositions) and continued investments in technology/AI to drive future productivity. Headwinds include a significant one‑time goodwill charge related to announced disposals, some near-term NIM drag from higher liquidity and continued uncertainty from recent Canada-U.S. tariff actions; corporate services experienced a quarter of weaker performance and expenses are growing as investments continue. Overall, positive momentum, diversified fee growth and improving credit/capital profiles materially outweigh the manageable near-term challenges.Positive Updates
Adjusted EPS and Net Income Growth
Adjusted EPS of $3.96, up 22% year-over-year; adjusted net income of $2.9 billion (record).
Negative Updates
Reported Results Impacted by One-Time Charge
Reported EPS was $2.38 and reported net income $1.8 billion; quarter included a $973 million charge largely related to goodwill on the announced sale of transportation finance and vendor finance businesses, reducing reported results.
Read all updates
Q3-2026 Updates
Positive
Negative
Adjusted EPS and Net Income Growth
Adjusted EPS of $3.96, up 22% year-over-year; adjusted net income of $2.9 billion (record).
Read all positive updates
Company Guidance
Management reiterated a clear set of forward-looking targets: they continue to target a sustainable 15% ROE exiting fiscal 2027 (adjusted ROE was 14% this quarter) and said there is no change to 2026 guidance, with fourth‑quarter impaired PCL expected to be in line with Q3 ($722M); credit metrics remain strong (gross impaired loans $6.8B / 97 bps, performing allowance $4.8B / 69 bps). On capital and capital actions, CET1 is 13% today, announced dispositions are expected to add ~50 bps of CET1 on closing, organic capital generation net of dividends was ~33 bps, and a new NCIB for up to 25M shares (~3.6% of shares outstanding) was approved. On the operating front they reaffirmed mid‑single‑digit core expense growth and positive operating leverage for the full year (current operating leverage 1.6%, efficiency ratio 54.9%), expect to grow NII while maintaining NIM stability (NII ex‑Markets +5% YoY; NIM ex‑Markets 226 bps, +5 bps YoY), and see resilient core margin trends as average loans (+3% YoY) and core operating deposits (+8% YoY) continue to expand.Bank Of Montreal Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 77.92B | 78.15B | 78.56B | 29.02B | 26.26B | 26.91B |
| Gross Profit | 35.45B | 32.48B | 28.28B | 29.64B | 25.69B | 26.91B |
| EBITDA | 13.61B | 12.39B | 11.18B | 7.71B | 19.09B | 11.44B |
| Net Income | 9.15B | 8.71B | 7.32B | 4.42B | 13.54B | 7.75B |
Balance Sheet | ||||||
| Total Assets | 1.54T | 1.48T | 1.41T | 1.29T | 1.14T | 988.17B |
| Cash, Cash Equivalents and Short-Term Investments | 74.09B | 104.16B | 113.53B | 114.31B | 118.21B | 121.97B |
| Total Debt | 131.22B | 415.19B | 262.44B | 248.74B | 222.64B | 189.81B |
| Total Liabilities | 1.45T | 1.39T | 1.33T | 1.22T | 1.07T | 930.65B |
| Stockholders Equity | 86.52B | 88.05B | 84.25B | 77.01B | 71.04B | 57.52B |
Cash Flow | ||||||
| Free Cash Flow | 30.27B | 8.51B | 27.47B | 19.59B | 3.51B | 43.07B |
| Operating Cash Flow | 32.20B | 10.24B | 29.03B | 21.27B | 4.96B | 44.05B |
| Investing Cash Flow | -41.41B | 605.00M | -24.53B | -21.16B | -29.47B | -299.00M |
| Financing Cash Flow | 24.41B | -8.67B | -17.41B | 268.00M | 15.98B | 47.12B |
Bank Of Montreal Technical Analysis
Neutral
239.94
Price Trends
248.41
Negative
230.43
Positive
206.18
Positive
Market Momentum
-2.48
Positive
35.91
Neutral
18.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BMO, the sentiment is Neutral. The current price of 239.94 is below the 20-day moving average (MA) of 249.04, below the 50-day MA of 248.41, and above the 200-day MA of 206.18, indicating a neutral trend. The MACD of -2.48 indicates Positive momentum. The RSI at 35.91 is Neutral, neither overbought nor oversold. The STOCH value of 18.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BMO.
Bank Of Montreal Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$151.80B | 15.67 | 15.24% | 2.52% | 0.14% | 26.17% | |
70 Outperform | C$399.49B | 18.38 | 15.95% | 2.16% | 4.67% | 19.97% | |
68 Neutral | C$160.00B | 16.69 | 11.06% | 3.62% | -3.29% | 43.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | C$82.56B | 18.63 | 13.77% | 2.19% | 7.97% | 17.60% | |
64 Neutral | C$169.47B | 19.41 | 10.58% | 2.63% | -1.74% | 7.63% | |
61 Neutral | C$280.24B | 19.75 | 11.85% | 2.56% | -10.53% | -20.00% |
* Financial Sector Average
TSE:BMO
Bank Of Montreal
238.69
80.01
50.42%
TSE:BNS
Bank Of Nova Scotia
128.84
46.67
56.80%
TSE:CM
Canadian Bank of Commerce
159.16
56.59
55.17%
TSE:RY
Royal Bank Of Canada
283.47
88.12
45.11%
TSE:TD
Toronto Dominion Bank
167.84
70.75
72.87%
TSE:NA
National Bank of Canada
212.93
73.47
52.68%
Bank Of Montreal Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
BMO and RBC to Sell Moneris to Francisco Partners in $2 Billion Deal
Positive
Aug 10, 2026
BMO Financial Group and Royal Bank of Canada have agreed to sell their jointly owned payments processor Moneris Solutions Corporation, a major Canadian commerce solutions provider, to technology investment firm Francisco Partners for about $2.0 bi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.