0.53%
3.90%
14.27%
24.51%
14.49%
0.77%
43.65%
AI Spotlight on BMO
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.
Market Data
| Last Price | 144.99 |
| Change Percentage | 0.53% |
| Open | 143.84 |
| Previous Close | 144.23 |
| Market Cap ( Millions) | 105794 |
| Volume | 4166119 |
| Year High | 147.54 |
| Year Low | 109.02 |
| M A 50 | 139.22 |
| M A 200 | 125.74 |
Financial Ratios
| FCF Yield | 17.40% |
| Dividend Yield | 4.28% |
| ROE | 9.04% |
| Debt / Equity | 311.50% |
| Net Debt / EBIDTA | 6638.18% |
| Price To Book | 1.25 |
| Price Earnings Ratio | 14.42 |
| Price To FCF | 5.75 |
| Price To sales | 1.96 |
| EV / EBITDA | 102.64 |
News
- Jan -30 - Market Chatter: BMO Second Canadian Bank to Launch Currency-Hedged Global Stocks
- Jan -30 - BMO Second Canadian Bank to Launch Currency-Hedged Global Stocks
- Jan -30 - BMO on The Day Ahead in Canada
- Jan -29 - BMO Decreases CDN$ Prime Lending Rate to 5.20 Per Cent
- Jan -29 - Porter Airlines, BMO and Mastercard Accelerate Canadians' Travel Rewards Journey with New Credit Card Program
- Jan -29 - BMO on The Day Ahead in Canada
- Jan -27 - BMO Managing Director Dismissed Over SEC Mortgage-Bond Probe
- Jan -27 - BMO on The Day, Week Ahead in Canada
- Jan -23 - Bank of Montreal (TSE:BMO) Is Paying Out A Larger Dividend Than Last Year
- Jan -23 - 3 Unstoppable Dividend Stocks That Can Be Pillars to Build Your Portfolio Around
- Jan -23 - BMO Announces Cash Distributions for Certain BMO ETFs and ETF Series of BMO Mutual Funds for January 2025
- Jan -23 - Coming soon: 2025 BMO Wine Market Report
- Jan -21 - BMO on The Day Ahead in Canada
- Jan -20 - BMO Investment Survey: Concerns About the Economy Emerge, Despite Rising TFSA Values
- Jan -17 - Bank of Montreal Receives Regulatory Approvals for Normal Course Issuer Bid
- Jan -17 - Market Chatter: BMO Withdraws From Banking Climate Alliance Ahead of Trump Inauguration
- Jan -17 - BMO, National Bank, TD follow U.S. banks to quit global climate alliance
- Jan -17 - BMO becomes first Canadian bank to withdraw from Net-Zero Banking Alliance
- Jan -17 - Top Canadian banks quit global climate coalition ahead of Trump inauguration
- Jan -17 - BMO Capital Markets, Rand Merchant Bank lead MEA M&A advisory in financial services for 2024
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Canadian Personal and Commercial Banking
Expected Growth : 3.5 %
What the company do ?
Canadian Personal and Commercial Banking from Bank of Montreal provides financial solutions to individuals and businesses in Canada, offering a range of products and services.
Why we expect these perspectives ?
The 3.5% growth in Canadian Personal and Commercial Banking at Bank of Montreal is driven by a strong economy, increasing consumer spending, and a growing small business sector. Additionally, the bank's digital transformation efforts, improved customer experience, and strategic partnerships have contributed to the growth. Furthermore, the bank's focus on cross-selling and upselling products has also boosted revenue.
Segment n°2 -> U.S. Personal and Commercial Banking
Expected Growth : 3.8 %
What the company do ?
U.S. Personal and Commercial Banking from Bank of Montreal provides financial solutions to individuals and businesses in the United States.
Why we expect these perspectives ?
The 3.8% growth in U.S. Personal and Commercial Banking at Bank of Montreal is driven by a strong loan growth, particularly in commercial lending, as well as solid deposit growth. Additionally, the segment has benefited from a favorable interest rate environment, leading to increased net interest income. Furthermore, the bank's digital transformation efforts have improved operational efficiency, contributing to the segment's growth.
Segment n°3 -> BMO Wealth Management
Expected Growth : 4.2 %
What the company do ?
BMO Wealth Management is a division of Bank of Montreal providing investment and wealth management services to individuals, families, and institutions.
Why we expect these perspectives ?
BMO Wealth Management's 4.2% growth driven by strong investment performance, strategic acquisitions, and expanding digital capabilities. Additionally, increasing demand for wealth management services, particularly among high-net-worth individuals, and effective cost management contribute to growth. Furthermore, BMO's diversified business model and strong brand reputation also support growth momentum.
Segment n°4 -> BMO Capital Markets
Expected Growth : 4.5 %
What the company do ?
BMO Capital Markets is the investment banking subsidiary of Bank of Montreal, providing financial advisory services and capital markets products to clients globally.
Why we expect these perspectives ?
BMO Capital Markets' 4.5% growth driven by strong investment banking performance, increased trading activity, and robust equity markets. Additionally, strategic acquisitions, cost savings initiatives, and a favorable interest rate environment contribute to growth. Diversified revenue streams, including corporate banking and markets, also support expansion.
Segment n°5 -> Corporate Services
Expected Growth : 3.2 %
What the company do ?
Corporate Services from Bank of Montreal provides cash management, trade finance, and risk management solutions to large corporations and institutions.
Why we expect these perspectives ?
The 3.2% growth in Corporate Services from Bank of Montreal is driven by increasing demand for cash management and trade finance solutions, expansion of commercial lending, and growth in treasury services. Additionally, strategic partnerships and investments in digital platforms have enhanced customer experience, contributing to the segment's growth.
Bank Of Montreal Products
| Product Range | What is it ? |
|---|---|
| Personal Banking | Bank of Montreal offers a range of personal banking services, including chequing and savings accounts, credit cards, loans, and investment products. |
| Credit Cards | Bank of Montreal offers a variety of credit cards with different features, rewards, and benefits, such as cashback, travel points, and low interest rates. |
| Mortgages | Bank of Montreal offers a range of mortgage products, including fixed-rate and variable-rate mortgages, with flexible repayment terms and competitive interest rates. |
| Investments | Bank of Montreal offers a range of investment products, including mutual funds, exchange-traded funds (ETFs), and self-directed investment accounts. |
| Business Banking | Bank of Montreal offers a range of business banking services, including business chequing and savings accounts, credit cards, loans, and cash management solutions. |
| Commercial Banking | Bank of Montreal offers a range of commercial banking services, including commercial lending, cash management, and trade finance solutions. |
| Wealth Management | Bank of Montreal offers a range of wealth management services, including investment advice, portfolio management, and estate planning. |
| Capital Markets | Bank of Montreal offers a range of capital markets services, including debt and equity underwriting, mergers and acquisitions advisory, and risk management solutions. |
Bank of Montreal's Porter Forces
Threat Of Substitutes
The threat of substitutes for Bank of Montreal is medium due to the presence of alternative financial institutions and digital payment systems. However, the bank's strong brand and customer loyalty mitigate this threat to some extent.
Bargaining Power Of Customers
The bargaining power of customers is low for Bank of Montreal due to the lack of switching options and the complexity of banking services. Customers are also loyal to the bank due to its long history and reputation.
Bargaining Power Of Suppliers
The bargaining power of suppliers is low for Bank of Montreal due to the bank's large size and negotiating power. The bank is able to negotiate favorable terms with its suppliers.
Threat Of New Entrants
The threat of new entrants is low for Bank of Montreal due to the high barriers to entry in the banking industry. New entrants would need to invest heavily in infrastructure and comply with strict regulations.
Intensity Of Rivalry
The intensity of rivalry is high for Bank of Montreal due to the presence of several large banks in Canada. The bank faces intense competition in terms of pricing, product offerings, and customer service.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 76.36% |
| Debt Cost | 9.88% |
| Equity Weight | 23.64% |
| Equity Cost | 9.88% |
| WACC | 9.88% |
| Leverage | 322.99% |
Bank of Montreal : Quality Control
Bank of Montreal passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| TD.TO | The Toronto-Dominion Bank, together with its subsidiaries, provides various financial products and services in Canada, the United States, and internationally. It operates through three segments: Canadian Retail, U.S. Retail, and … |
| JPM | JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and … |
| NA.TO | National Bank of Canada provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth … |
| C | Citigroup Inc., a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, … |
| BAC | Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. Its Consumer … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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JPMorgan Chase
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1-Year Total Return ->
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TD Bank
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1-Year Total Return ->
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NatBank
A-Score
1-Year Total Return ->
4
Citigroup
A-Score
1-Year Total Return ->
5
BMO
A-Score
1-Year Total Return ->
6
