BMO Bank of Montreal - Fundamental Analysis
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BMO Stock | Fundamental Analysis & Investment Insights
NYSE
Financial Services
Banks - Diversified
Current Price
Live
$137.69
Analyst Target
$127.91
-7.1%
Downside
52W High
$138.95
52W Low
$85.4
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 24, 2026
Market cap
$98.97B
P/E
16.77
ROE
10.1%
Profit margin
26.7%
Debt/Equity
N/A
Dividend yield
3.45%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
The Advanced Deterministic Scorecard shows a weak Piotroski F-Score of 4/9, indicating marginal financial health, and the absence of an Altman Z-Score prevents a full solvency risk assessment. Despite solid profitability metrics like a 38.67% operating margin and strong revenue growth of 15.50%, earnings growth is inconsistent, with recent Q/Q declines and volatile quarterly surprises. The stock trades above its Graham defensive value of $127.87 at $137.69, yet below the analyst target of $127.91, while offering a solid 3.45% dividend yield with a sustainable 56.29% payout ratio. Technical trend sentiment is weak at 10/100, offsetting positive insider sentiment, resulting in a neutral overall stance.
Key Strengths
Strong operating margin of 38.67% indicates efficient cost management
Revenue growth of 15.50% YoY outpaces sector average of 34.80% despite macro headwinds
Dividend yield of 3.45% is attractive with a reasonable payout ratio of 56.29%
Historical price performance shows strong 5Y return of +120.0%, reflecting long-term investor confidence
Analyst recommendation consensus is 'hold' with limited downside implied by target price
Key Risks
Low Piotroski F-Score of 4/9 signals weak financial health and potential balance sheet inefficiencies
Missing Altman Z-Score creates uncertainty around bankruptcy risk and capital structure stability
Earnings growth is inconsistent, with YoY growth at +56.3% but Q/Q EPS down -8.0% and recent negative surprises
Technical trend score of 10/100 suggests strong near-term bearish momentum
Valuation metrics like P/E of 16.77 are below sector average of 30.22, but forward P/E of 12.28 may reflect deteriorating expectations
AI Fair Value Estimate
Based on comprehensive analysis
$127.87
-7.1% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
57
Moderate
52
56
64
45
70
AI Verdict
Neutral with moderate upside risk due to valuation and technical pressures
Key drivers: Piotroski F-Score of 4, Graham Number vs current price, Strong revenue growth but weak earnings consistency, High insider sentiment despite zero transactions, Bearish technical trend
Confidence
75%
Value
52/100
Ref P/E, PEG, Graham Number
Positives
- Graham Number of $127.87 provides conservative floor
- Forward P/E of 12.28 suggests potential undervaluation
Watchpoints
- Current price of $137.69 exceeds Graham defensive value
- PEG Ratio unavailable limits growth-adjusted valuation
Future
56/100
Ref Growth rates
Positives
- Revenue growth of 15.50% YoY indicates demand strength
- Forward P/E of 12.28 implies improving earnings outlook
Watchpoints
- Q/Q earnings growth of -0.60% and -8.0% Q/Q EPS decline signal near-term weakness
- Earnings surprise volatility has increased recently
Past
64/100
Ref Historical trends
Positives
- 5Y price return of +120.0% shows strong historical performance
- Long-term earnings trend includes multiple large positive surprises
Watchpoints
- Recent quarters show declining earnings relative to estimates
- Q/Q revenue growth not available, limiting trend analysis
Health
45/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- ROE of 10.12% is positive and above cost of equity in many models
Watchpoints
- Piotroski F-Score of 4/9 indicates weak financial health
- Missing Altman Z-Score, Debt/Equity, and cash/debt data limits solvency assessment
Dividend
70/100
Ref Yield, Payout
Positives
- Dividend yield of 3.45% is above market average
- Payout ratio of 56.29% is sustainable for a financial institution
Watchpoints
- Dividend Strength score of 50/100 suggests moderate reliability
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$137.69
Analyst Target
$127.91
Upside/Downside
-7.1%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for BMO and closest competitors.
Updated 2026-01-23
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
BMO
Bank of Montreal
Primary
|
+120.0% | +57.5% | +42.1% | +21.6% | +5.5% | +0.9% |
|
HOOD
Robinhood Markets, Inc.
Peer
|
+212.3% | +1042.2% | +136.0% | -0.9% | -6.1% | -5.7% |
|
CME
CME Group Inc.
Peer
|
+107.0% | +88.5% | +33.3% | +4.1% | +6.3% | +3.1% |
|
BNS
The Bank of Nova Scotia
Peer
|
+76.6% | +68.7% | +49.2% | +32.2% | +1.1% | +1.9% |
|
BN
Brookfield Corporation
Peer
|
+139.4% | +96.9% | +19.5% | +4.9% | +1.2% | -0.4% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
16.77
Forward P/E
12.28
PEG Ratio
N/A
P/B Ratio
1.56
P/S Ratio
3.03
EV/Revenue
-0.77
EV/EBITDA
N/A
Market Cap
$98.97B
Profitability
Profit margins and return metrics
Profit Margin
26.67%
Operating Margin
38.67%
Gross Margin
N/A
ROE
10.12%
ROA
0.6%
Growth
Revenue and earnings growth rates
Revenue Growth
+15.5%
Earnings Growth
+1.1%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
-0.6%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
N/A
Current Ratio
N/A
Quick Ratio
N/A
Cash/Share
$633.5
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-24
$N/A
2025-12-04
$2.97
+2.8% surprise
2025-08-26
$3.23
+9.2% surprise
2025-05-28
$2.5
+4.5% surprise
Financial Services Sector Comparison
Comparing BMO against 208 companies in the Financial Services sector
(6 bullish, 111 neutral, 91 bearish)
P/E Ratio
16.77
This Stock
vs
30.41
Sector Avg
-44.9%
(Discount)
Return on Equity (ROE)
10.12%
This Stock
vs
-7.57%
Sector Avg
-233.7%
(Below Avg)
Profit Margin
26.67%
This Stock
vs
82.83%
Sector Avg
-67.8%
(Weaker)
Revenue Growth
15.5%
This Stock
vs
28.13%
Sector Avg
-44.9%
(Slower)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
BMO
Bank of Montreal
|
NEUTRAL | $98.97B | 16.77 | 10.1% | 26.7% | $137.69 | |
|
HOOD
Robinhood Markets, Inc.
|
NEUTRAL | $97.78B | 45.5 | 27.8% | 52.2% | $108.74 | |
|
CME
CME Group Inc.
|
NEUTRAL | $102.78B | 27.62 | 13.3% | 58.9% | $285.04 | |
|
BNS
The Bank of Nova Scotia
|
NEUTRAL | $93.29B | 18.17 | 9.0% | 24.6% | $74.87 | |
|
BN
Brookfield Corporation
|
NEUTRAL | $106.0B | 131.03 | 1.0% | 1.3% | $47.17 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-01-05 | Claxton (Hazel Cynthia) | Director of Issuer | Acquisition in the public market at price 134.16 p | 325 | $43,600 |
| 2026-01-01 | Dufaux (Caroline) | Senior Officer of Issuer | Stock Award | - | - |
| 2026-01-01 | Dufaux (Caroline) | Senior Officer of Issuer | Stock Award | - | - |
| 2025-12-16 | Bank Of Montreal | Issuer | Stock Award | 175,000 | - |
| 2025-12-15 | Bank Of Montreal | Issuer | Stock Award | 175,000 | - |
| 2025-12-15 | Bank Of Montreal | Issuer | Purchase | 175,000 | $23,129,750 |
| 2025-12-15 | Tannenbaum (Alan) | Senior Officer of Issuer | Option Exercise | 11,447 | $1,017,134 |
| 2025-12-15 | Tannenbaum (Alan) | Senior Officer of Issuer | Disposition in the public market at price 132.29 p | 11,447 | $1,514,369 |
| 2025-12-12 | Bank Of Montreal | Issuer | Stock Award | 175,000 | - |
| 2025-12-12 | Bank Of Montreal | Issuer | Purchase | 175,000 | $23,129,050 |
| 2025-12-11 | Bank Of Montreal | Issuer | Stock Award | 175,000 | - |
| 2025-12-11 | Bank Of Montreal | Issuer | Purchase | 175,000 | $23,035,775 |
| 2025-12-10 | Bank Of Montreal | Issuer | Stock Award | 175,000 | - |
| 2025-12-10 | Bank Of Montreal | Issuer | Purchase | 175,000 | $22,496,075 |
| 2025-12-09 | Bank Of Montreal | Issuer | Stock Award | 175,000 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
3 analysts
RBC Capital
2025-10-03
Outperform
Sector Perform
RBC Capital
2025-08-27
Outperform
Outperform
Past News Coverage
Recent headlines mentioning BMO from our newsroom.
Newest → oldest
No matching news yet.