# Bank of Montreal (BMO.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Financial Services / Banks. Price C$242.76, market value C$168.7 billion.

## Valuation
- **P/E (trailing): 19.8×** (5-yr avg 11.8×, 3-yr avg 14.6×). Bank of Montreal trades at 19.8× trailing earnings, well above its own five-year average of 11.8×: investors are paying up relative to the company's past. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 14.8×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.73**. A PEG of 0.73 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 2.5×**. Each dollar of revenue is priced at 2.5×.
- **Price / book: 2.0×**. The shares trade at 2.0× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 41.5%** (5-yr avg 26.6%). Free cash flow equals 41.5% of the market value, above its five-year average of 26.6%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.1%**. The inverse of the P/E: 5.1% of the price is earned each year.

## Profitability
- **Net margin: 11.1%**. 11.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.9%**. 9.9% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on assets: 0.6%**. Each dollar of assets produces 0.6% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): -0.5%** (3-yr 43.8%/yr, 5-yr 28.6%/yr). Revenue fell 0.5% over the last year, against 28.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 20.3%** (3-yr -17.0%/yr, 5-yr 8.7%/yr). Earnings per share rose 20.3%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 34.4%/yr**. Free cash flow has compounded at 34.4% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.
- **Cash and short-term investments: C$104.2 billion**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 2.82%** (C$6.68 per share, trailing). Bank of Montreal yields 2.82%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 58%** (7% of free cash flow). 58% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 8.7%/yr** (1-yr 5.2%). The dividend has grown 8.7% a year over five years.
- **Shareholder yield: 6.1%**. Dividends plus net buybacks return 6.1% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (14 analysts). 14 analysts cover Bank of Montreal; the consensus is hold, with an average price target of C$254.57 (+5% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 43.9%** (YTD 38.5%, 3-mo 5.9%). The shares are up 43.9% over twelve months including dividends.
- **From 52-week high: -6.3%** (43.7% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 0.89** (volatility 19%). Beta of 0.89 against the S&P/TSX Composite: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=BMO.TO · Page: https://foliofundamentals.com/stocks/bmo.to

Not investment advice.