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Bank of Montreal BMO

Morningstar Rating
$86.07 +0.23 (0.27%)
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Company Report

Bank of Montreal Earnings: Decent Fourth Quarter, With More Cost Savings on the Way

Narrow-moat-rated Bank of Montreal reported OK fiscal fourth-quarter earnings. As expected, results were quite messy with multiple one-time charges. Adjusted earnings per share came in at CAD 2.81, a decrease of 8% year over year and 1% sequentially. Management highlighted updated Bank of the West cost synergies of about $800 million from the previous $670 million. However, the fully realized pretax preprovision earnings benefit of $2 billion was unchanged, implying some of the nonexpense benefits had decreased. Management also delayed the fully realized pretax preprovision schedule by one or two quarters, into the first half of 2026. This supports our thesis that it’s more difficult to realize revenue synergies than cost savings.

Price vs Fair Value

BMO is trading at a 14% discount.
Price
$86.07
Fair Value
$539.00
Uncertainty
Low
1-Star Price
$214.00
5-Star Price
$84.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Growth and opportunities in the bank's U.S. markets will outweigh any slowdown in its native Canada as U.S. subsidiaries gain market share.

Bears

The housing market in Canada is starting to heat up again, increasing potential risks for the economy and the banking sector.

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News

Trading Information

Previous Close Price
$85.84
Day Range
$85.2986.20
52-Week Range
$73.98102.79
Bid/Ask
$84.89 / $95.50
Market Cap
$62.05 Bil
Volume/Avg
758,582 / 719,015

Key Statistics

Price/Earnings (Normalized)
9.90
Price/Sales
2.50
Dividend Yield
4.95%
Dividend Yield (Forward)
5.16%
Total Yield
4.95%

Company Profile

Bank of Montreal is a diversified financial-services provider based in North America, operating four business segments: Canadian personal and commercial banking, U.S. P&C banking, wealth management, and capital markets. The bank's operations are primarily in Canada, with a material portion also in the U.S.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
55,767

Competitors

Valuation

Metric
BMO
RY
CM
Price/Earnings (Normalized)
9.9010.588.55
Price/Book Value
1.221.601.14
Price/Sales
2.503.052.26
Price/Cash Flow
10.668.975.36
Price/Earnings
BMO
RY
CM

Financial Strength

Metric
BMO
RY
CM
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
BMO
RY
CM
Return on Assets (Normalized)
0.71%0.81%0.68%
Return on Equity (Normalized)
12.79%15.22%13.92%
Return on Invested Capital (Normalized)
Return on Assets
BMO
RY
CM

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Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
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RY
Royal Bank of CanadaBjvl$128.6 Bil
TD
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MUFG
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C
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UBS
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SAN
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