Fact based stock research
Bank of Montreal (TSX:BMO)

CA0636711016

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Bank of Montreal stock research in summary

bmo.com

ANALYSIS: With an Obermatt Combined Rank of 27 (worse than 73% compared with investment alternatives), Bank of Montreal (Diversified Banks, Canada) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Bank of Montreal are low in value (priced high) with a consolidated Value Rank of 33 (worse than 67% of alternatives), show below-average growth (Growth Rank of 38), and are riskily financed (Safety Rank of 47), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 27, is a hold recommendation based on Bank of Montreal's financial characteristics. As the company Bank of Montreal's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 33), low growth (Obermatt Growth Rank of 38), and risky financing practices (Obermatt Safety Rank of 47), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	33
Growth Rank	38
Safety Rank	47
Combined Rank	27

Country	Canada
Industry	Diversified Banks
Index	Human Rights, TSX Composite
Size class	Medium

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Bank of Montreal

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	91	71	69	33
GROWTH
GROWTH	83	76	7	38
SAFETY
SAFETY	55	33	48	47
SENTIMENT
SENTIMENT	76	35	23	^new
360° VIEW
360° VIEW	100	63	22	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 30-Apr-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Bank of Montreal is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	91	71	69	33
GROWTH
GROWTH	83	76	7	38
SAFETY
SAFETY	55	33	48	47
COMBINED
COMBINED	100	71	36	27

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Bank of Montreal the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 33 (worse than 67% compared with alternatives), Bank of Montreal shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Bank of Montreal. Price-to-Sales (P/S) is 57, which means that the stock price compared with what market professionals expect for future sales is lower than for 57% of comparable companies, indicating a good value concerning Bank of Montreal's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 81, which means that dividends are expected to be higher than for 81% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 82% of alternatives (only 18% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 76% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 33, is a hold recommendation based on Bank of Montreal's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	77	67	73	57
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	85	71	49	24
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	30	38	32	18
DIVIDEND YIELD
DIVIDEND YIELD	95	87	94	81
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	91	71	69	33

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Bank of Montreal; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 38 (better than 38% compared with alternatives), Bank of Montreal shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Bank of Montreal. Profit Growth has a rank of 52, which means that currently professionals expect the company to grow its profits more than 52% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 93 (above 93% of alternative investments). But Sales Growth has a below the median rank of 8, which means that, currently, professionals expect the company to grow less than 92% of its competitors, and Capital Growth also has a lower rank of 5. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 38, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Bank of Montreal. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	70	78	34	8
PROFIT GROWTH
PROFIT GROWTH	16	66	43	52
CAPITAL GROWTH
CAPITAL GROWTH	73	58	18	5
STOCK RETURNS
STOCK RETURNS	87	67	13	93
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	83	76	7	38

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Bank of Montreal.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 47 (better than 47% compared with alternatives), the company Bank of Montreal has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Bank of Montreal is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Bank of Montreal. Refinancing is at 66, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 66% of its competitors. Liquidity is also good at 71, meaning the company generates more profit to service its debt than 71% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 2, which means the company has an above-average debt-to-equity ratio. It has more debt than 98% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 47 (worse than 53% compared with alternatives), Bank of Montreal has a financing structure that is riskier than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Bank of Montreal could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Bank of Montreal and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	12	12	9	2
REFINANCING
REFINANCING	53	62	64	66
LIQUIDITY
LIQUIDITY	92	56	70	71
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	55	33	48	47

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Bank of Montreal and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	67	35	^new
OPINIONS CHANGE
OPINIONS CHANGE	16	4	26	^new
PRO HOLDINGS
PRO HOLDINGS	70	21	59	^new
MARKET PULSE
MARKET PULSE	86	60	40	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	76	35	23	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Bank of Montreal.
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