(BMO) Bank of Montreal - Overview
Stock: Deposits, Lending, Cards, Wealth, Insurance, Capital
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 4.05% |
| Yield on Cost 5y | 7.52% |
| Yield CAGR 5y | 7.74% |
| Payout Consistency | 98.6% |
| Payout Ratio | 38.3% |
| Risk 5d forecast | |
|---|---|
| Volatility | 20.1% |
| Relative Tail Risk | -5.36% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.94 |
| Alpha | 39.00 |
| Character TTM | |
|---|---|
| Beta | 0.618 |
| Beta Downside | 0.706 |
| Drawdowns 3y | |
|---|---|
| Max DD | 24.07% |
| CAGR/Max DD | 0.70 |
Description: BMO Bank of Montreal January 28, 2026
Bank of Montreal (NYSE:BMO) is a diversified North-American financial services firm operating through four main segments: Canadian and U.S. Personal & Commercial Banking, BMO Wealth Management, and BMO Capital Markets. The business delivers a full suite of banking, credit, treasury, wealth-advisory, insurance, and capital-raising services to retail, institutional, and corporate clients.
Recent performance metrics (Q4 2025) show a net income of **$2.1 billion**, a **CET1 capital ratio of 13.2 %**, and **loan growth of 5 % YoY** across its banking divisions. BMO Wealth Management reported **$1.2 trillion in assets under management**, while the Capital Markets unit posted a **15 % increase in trading revenue**, driven by higher volumes in fixed-income and FX. These figures reflect the firm’s ability to capture upside from a still-elevated interest-rate environment while maintaining strong capital buffers.
Key drivers for BMO’s outlook include: (1) the Bank of Canada’s policy rate staying above 4 % through 2026, which supports net interest margin expansion; (2) U.S. mortgage-rate volatility that creates opportunities for the U.S. P&C segment’s consumer-credit and home-lending products; and (3) growing demand for wealth-management and retirement-de-risking solutions among high-net-worth clients, a trend amplified by an aging Canadian demographic and rising household wealth.
For a deeper, data-rich analysis of BMO’s valuation dynamics, consider exploring the next-generation analytics platform **ValueRay** to uncover additional insights.
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income: 8.71b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -1.21 > 1.0 |
| NWC/Revenue: -1238 % < 20% (prev -1172 %; Δ -65.44% < -1%) |
| CFO/TA 0.01 > 3% & CFO 10.24b > Net Income 8.71b |
| Net Debt (344.87b) to EBITDA (13.73b): 25.12 < 3 |
| Current Ratio: 0.14 > 1.5 & < 3 |
| Outstanding Shares: last quarter (723.3m) vs 12m ago -0.72% < -2% |
| Gross Margin: 41.56% > 18% (prev 0.36%; Δ 4120 % > 0.5%) |
| Asset Turnover: 5.41% > 50% (prev 5.57%; Δ -0.16% > 0%) |
| Interest Coverage Ratio: 0.27 > 6 (EBITDA TTM 13.73b / Interest Expense TTM 42.05b) |
Altman Z'' -4.08
| A: -0.65 (Total Current Assets 158.34b - Total Current Liabilities 1125.44b) / Total Assets 1476.80b |
| B: 0.03 (Retained Earnings 47.38b / Total Assets 1476.80b) |
| C: 0.01 (EBIT TTM 11.55b / Avg Total Assets 1443.22b) |
| D: 0.06 (Book Value of Equity 78.72b / Total Liabilities 1388.70b) |
| Altman-Z'' Score: -4.08 = D |
Beneish M -2.92
| DSRI: 1.28 (Receivables 54.18b/42.43b, Revenue 78.15b/78.56b) |
| GMI: 0.87 (GM 41.56% / 36.00%) |
| AQI: 1.00 (AQ_t 0.89 / AQ_t-1 0.88) |
| SGI: 0.99 (Revenue 78.15b / 78.56b) |
| TATA: -0.00 (NI 8.71b - CFO 10.24b) / TA 1476.80b) |
| Beneish M-Score: -2.92 (Cap -4..+1) = A |
What is the price of BMO shares?
Over the past week, the price has changed by -1.11%, over one month by +5.13%, over three months by +14.91% and over the past year by +47.81%.
Is BMO a buy, sell or hold?
- StrongBuy: 2
- Buy: 5
- Hold: 7
- Sell: 1
- StrongSell: 0
What are the forecasts/targets for the BMO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 128.7 | -8% |
| Analysts Target Price | 128.7 | -8% |
| ValueRay Target Price | 166.6 | 19.1% |
BMO Fundamental Data Overview January 31, 2026
P/E Trailing = 16.1891
P/E Forward = 14.1243
P/S = 2.9966
P/B = 1.5752
P/EG = 1.4772
Revenue TTM = 78.15b CAD
EBIT TTM = 11.55b CAD
EBITDA TTM = 13.73b CAD
Long Term Debt = 59.13b CAD (from longTermDebt, last quarter)
Short Term Debt = 248.31b CAD (from shortTermDebt, last quarter)
Debt = 415.19b CAD (from shortLongTermDebtTotal, last quarter)
Net Debt = 344.87b CAD (from netDebt column, last quarter)
Enterprise Value = 444.75b CAD (133.72b + Debt 415.19b - CCE 104.16b)
Interest Coverage Ratio = 0.27 (Ebit TTM 11.55b / Interest Expense TTM 42.05b)
EV/FCF = 52.26x (Enterprise Value 444.75b / FCF TTM 8.51b)
FCF Yield = 1.91% (FCF TTM 8.51b / Enterprise Value 444.75b)
FCF Margin = 10.89% (FCF TTM 8.51b / Revenue TTM 78.15b)
Net Margin = 11.14% (Net Income TTM 8.71b / Revenue TTM 78.15b)
Gross Margin = 41.56% ((Revenue TTM 78.15b - Cost of Revenue TTM 45.67b) / Revenue TTM)
Gross Margin QoQ = 44.10% (prev 42.45%)
Tobins Q-Ratio = 0.30 (Enterprise Value 444.75b / Total Assets 1476.80b)
Interest Expense / Debt = 2.41% (Interest Expense 10.02b / Debt 415.19b)
Taxrate = 24.26% (735.0m / 3.03b)
NOPAT = 8.75b (EBIT 11.55b * (1 - 24.26%))
Current Ratio = 0.14 (Total Current Assets 158.34b / Total Current Liabilities 1125.44b)
Debt / Equity = 4.72 (Debt 415.19b / totalStockholderEquity, last quarter 88.05b)
Debt / EBITDA = 25.12 (Net Debt 344.87b / EBITDA 13.73b)
Debt / FCF = 40.52 (Net Debt 344.87b / FCF TTM 8.51b)
Total Stockholder Equity = 87.03b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.60% (Net Income 8.71b / Total Assets 1476.80b)
RoE = 10.01% (Net Income TTM 8.71b / Total Stockholder Equity 87.03b)
RoCE = 7.90% (EBIT 11.55b / Capital Employed (Equity 87.03b + L.T.Debt 59.13b))
RoIC = 2.44% (NOPAT 8.75b / Invested Capital 358.87b)
WACC = 3.38% (E(133.72b)/V(548.91b) * Re(8.19%) + D(415.19b)/V(548.91b) * Rd(2.41%) * (1-Tc(0.24)))
Discount Rate = 8.19% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.23%
[DCF Debug] Terminal Value 80.82% ; FCFF base≈15.16b ; Y1≈9.95b ; Y5≈4.54b
Fair Price DCF = N/A (negative equity: EV 144.70b - Net Debt 344.87b = -200.17b; debt exceeds intrinsic value)
[DCF Warning] FCF declining rapidly (-40.0%), DCF may be unreliable
EPS Correlation: -33.95 | EPS CAGR: -4.45% | SUE: 0.86 | # QB: 1
Revenue Correlation: 83.62 | Revenue CAGR: 25.16% | SUE: 2.74 | # QB: 1
EPS next Quarter (2026-04-30): EPS=3.28 | Chg30d=+0.000 | Revisions Net=+5 | Analysts=12
EPS current Year (2026-10-31): EPS=13.67 | Chg30d=+0.034 | Revisions Net=+7 | Growth EPS=+12.4% | Growth Revenue=+4.2%
EPS next Year (2027-10-31): EPS=15.57 | Chg30d=+0.111 | Revisions Net=+8 | Growth EPS=+13.9% | Growth Revenue=+5.1%