Bank of Montreal

BMO

NYSE · Large & Global Banks

$171.13

At close - USD

Market Cap$119.86B

P/E21.0x

52W High$187.22

Volume296.87K

VCP Research Verdict2026Q3

Acquisition Synergy Fade Exposes Margin Pressure and Credit Risk

Bank of Montreal's growth trajectory appears to be decelerating as the earnings benefits from the Bank of the West acquisition cycle through, evidenced by a Net Interest Income growth rate falling to just 1.3% in 2026Q3.

GrowthDecelerating

ProfitabilityStrained

ValuationAttractive

TechnicalsHealthy

Explore valuation models

MARKET ACTION

BMO price & volume

Price trend, volume and key moving averages

Launch Terminal

Loading chart...

Build the investment case

Start with the evidence for owning the stock and the risks that can break the thesis.

EXECUTIVE THESIS

The Investment Case

Full Analysis

Fundamental Trajectory

Revenue growth is stalling as a stagnant 0.4% Net Interest Margin and a sharply deteriorating efficiency ratio of 67.1% in 2026Q3 indicate the bank is losing operating leverage.

Analyst Consensus+114.7% target

Buy(18 analysts)

8 Buy8 Hold2 Sell

The Bull Case

Upside Catalysts

Diversified Business Model

BMO operates across personal and commercial banking, reducing exposure to economic swings. The multi-segment structure supports steady revenue streams across varying market conditions.

Digital Innovation & AI

The bank invests in tokenized cash settlement and AI-powered customer engagement tools. Initiatives include the DollarGPS financial planning app and the Institute for Applied Artificial Intelligence & Quantum, positioning BMO at the forefront of fintech.

US Growth Potential

BMO seeks to expand its California footprint and improve results in U.S. operations. The bank targets growth in its U.S. markets, leveraging its North American franchise to capture new customer segments.

The Bear Case

Key Downside Risks

Market performance

Price History →

Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return

BMO+33.15%

S&P 500 (^GSPC)+7.63%

1-Year Return

BMO+43.20%

S&P 500 (^GSPC)+9.69%

3-Year Return

BMO+133.43%

S&P 500 (^GSPC)+67.43%

5-Year Return

BMO+73.25%

S&P 500 (^GSPC)+55.72%

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis

Trailing P/E5Y High

13.2x

Forward P/EExpansion

11.5x

EV/EBITDA80th %ile

35.2x

FCF YieldCash Flow

5.1%

Valuation vs 5-Year History

Multiple Range

Metric

Current

5Y Median

Historical Range

Percentile

P/E

13.2x

9.6x

100th· High

EV/EBITDA

35.2x

31.7x

80th· High

Price/FCF

19.5x

6.8x

100th· High

Current Multiple

5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection

Bear$83.14-51.4%

Base (Fair)$146.01-14.7%

Bull$224.81+31.4%

$83.14 Bear$146.01 Base$224.81 Bull

Current Market Price: $171.13

Trades at a 17.2% premium to Base DCF ($146.01)

Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend

Revenue FY25

$36.1B+12.7% YoY

Net income FY25

$8.71B+19.0% YoY

Free cash flow FY25

$8.51B-69.0% YoY

Operating margin FY25

32%+2.2 pts YoY

ROIC (FY25)1.8%

Avg ROIC 5Y-

ROE (FY25)10.1%

Piotroski Score7 / 9

Financial Statements →

Monitor what changed

Recent results and news deserve attention only when they alter the forward view.

OPERATING RESULTS

Recent Earnings

Earnings History

EPS Beat Rate6/12 (50%)

Revenue Beat Rate11/12 (92%)

Quarter	EPS (Act vs Est)	Revenue (Act vs Est)
Q3 2026Latest Aug 25, 2026	$2.84+4.8% vs $2.71	$7.1B+2.4% vs $6.9B
Q2 2026 May 27, 2026	$2.68+5.5% vs $2.54	$7.0B+0.9% vs $7.0B
Q1 2026 Feb 25, 2026	$2.51+6.8% vs $2.35	$7.2B+3.2% vs $7.0B
Q4 2025 Dec 4, 2025	$2.36+9.3% vs $2.16	$6.7B+3.4% vs $6.4B

Historical baseline: 12 quarters analyzedGAAP / Adjusted

MARKET COVERAGE

Latest News

4 Stories

PRNewsWire·3d ago

Cognizant to Present at the BMO Technology and Innovation Leaders Conference

TEANECK, N.J., Nov. 4, 2026 /PRNewswire/ -- Cognizant (Nasdaq: CTSH), a leading AI builder and technology services provider, today announced its participation at the following investor conference: BMO Technology and Innovation Leaders Conference Presenter: Jatin Dalal, Chief Financial Officer Date: Thursday, November 12, 2026 Time: 10:45AM ET A live audio webcast of the presentation will be available at Cognizant's website: http://investors.cognizant.com A replay of the webcasts will remain available on the company's website for 90 days.

Business Wire·4d ago

Ameriprise Financial Chief Financial Officer to Present at the 2026 BMO Financials Conference

MINNEAPOLIS--(BUSINESS WIRE)--Ameriprise Financial, Inc. (NYSE: AMP) today announced that Walter S. Berman, executive vice president and chief financial officer, is scheduled to speak about the company's business and strategy at the 2026 BMO Financials Conference on Tuesday, November 10, 2026 at approximately 11:00 am ET. A live webcast of the fireside chat will be available at the event website at https://app.webinar.net/LWXnqkXodjA or via the Ameriprise Financial Investor Relations website at.

Business Wire·Oct 29, 2026

Stonepeak Completes Acquisition of BMO's Transportation and Vendor Finance Businesses and Launches Longview Capital Solutions

NEW YORK & DALLAS--(BUSINESS WIRE)--Stonepeak, a leading alternative investment firm specializing in infrastructure, today announced the completion of its acquisition of BMO Financial Group's (TSX: BMO) (NYSE: BMO) Transportation Finance and Vendor Finance businesses in the United States and Canada, and the launch of the independent company as Longview Capital Solutions (“Longview” or the “Company”).Longview is a leading commercial equipment finance platform serving customers across North Americ.

PRNewsWire·Oct 29, 2026

BMO Closes Sale of Transportation and Vendor Finance Businesses

TORONTO and CHICAGO, Oct. 29, 2026 /PRNewswire/ -- BMO Financial Group (TSX: BMO) (NYSE: BMO) today announced it has closed the previously announced sale of its Transportation Finance and Vendor Finance businesses to Stonepeak. At closing, BMO transferred approximately 75% (C$11 billion) of the estimated C$14.5 billion total combined loan and lease portfolio to Stonepeak, with the remaining balances expected to transfer in the first quarter of fiscal 2027, subject to customary conditions.

Filtered for Bank of MontrealMore Headlines

Compare before deciding

Benchmark BMO against direct peers instead of judging its metrics in isolation.

Peers Comparison

Key metrics vs top competitors for Bank of Montreal (BMO)

Full Screener →

Company	Price	Market Cap	P/E Ratio	Rev Growth (1Y)	Net Margin	ROE	Div Yield
BMOBank of MontrealCurrent	$171.13	$119.86B	21.03	12.67%	24.13%	10.1%	2.89%
TDThe Toronto-Dominion Bank	$122.40	$206.79B	14.89	8.93%	24.95%	12.83%	2.59%
RYRoyal Bank of Canada	$201.16	$280.94B	20.07	15.73%	31.01%	16.1%	2.21%
BNSThe Bank of Nova Scotia	$91.69	$112.42B	22.65	387.04%	25.41%	11.22%	3.35%
CMCanadian Imperial Bank of Commerce	$115.18	$106.73B	18.90	13.66%	31.47%	15.37%	2.62%
MFCManulife Financial Corporation	$43.24	$72.16B	19.80	827.41%	11.61%	12.61%	3.18%

Compare BMO vs Peers

Bank of Montreal (BMO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs TD

Most directly comparable listed peer for BMO.

Scale Benchmark

vs JPM

Larger-name benchmark to compare BMO against a more recognizable public peer.

Peer Set

Compare Top 5

vs TD, RY, BNS, CM

Get notified when BMO posts new earnings or crosses analyst targets

Free. No account needed. Unsubscribe any time.

BMO Frequently Asked Questions

Bank of Montreal (BMO) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials

How fast is Bank of Montreal growing?

Bank of Montreal (BMO) grew revenue by 12.7% in fiscal year 2025, compared with the prior fiscal year.

Is BMO profitable?

Yes. Bank of Montreal (BMO) earned $9.15B in net income over the trailing twelve months (a 23.7% net margin).

Dividend & Returns

Does BMO pay dividends?

Yes. Bank of Montreal (BMO) pays a dividend that yields 2.89% at the current price, a moderate yield.

What is BMO's return on equity?

Bank of Montreal (BMO) had a return on equity (ROE) of 10.1% in fiscal year 2025. That is in line with the market's typical 10-15%.

Industry Metrics

What is Bank of Montreal's net interest margin?

Bank of Montreal (BMO) has a net interest margin (NIM) of 1.5%. NIM has been under pressure due to interest rate environment.

What is Bank of Montreal's efficiency ratio?

Bank of Montreal (BMO) has an efficiency ratio of 58.0%. This is reasonable for a bank.

What if you invested $1,000 in BMO back in 1996?

Total return calculator · dividends reinvested · 30+ years of data

See returns →

Quarter

EPS (Act vs Est)

Revenue (Act vs Est)

Q3 2026Latest

Aug 25, 2026

$2.84+4.8%

vs $2.71

$7.1B+2.4%

vs $6.9B

Q2 2026

May 27, 2026

$2.68+5.5%

vs $2.54

$7.0B+0.9%

vs $7.0B

Q1 2026

Feb 25, 2026

$2.51+6.8%

vs $2.35

$7.2B+3.2%

vs $7.0B

Q4 2025

Dec 4, 2025

$2.36+9.3%

vs $2.16

$6.7B+3.4%

vs $6.4B

Company

Price

Market Cap

P/E Ratio

Rev Growth (1Y)

Net Margin

ROE

Div Yield

BMOBank of MontrealCurrent

$171.13

$119.86B

21.03

12.67%

24.13%

10.1%

2.89%

TDThe Toronto-Dominion Bank

$122.40

$206.79B

14.89

8.93%

24.95%

12.83%

2.59%

RYRoyal Bank of Canada

$201.16

$280.94B

20.07

15.73%

31.01%

16.1%

2.21%

BNSThe Bank of Nova Scotia

$91.69

$112.42B

22.65

387.04%

25.41%

11.22%

3.35%

CMCanadian Imperial Bank of Commerce

$115.18

$106.73B

18.90

13.66%

31.47%

15.37%

2.62%

MFCManulife Financial Corporation

$43.24

$72.16B

19.80

827.41%

11.61%

12.61%

3.18%