Bank of Montreal (BMO) AI Stock Analysis

Founded in 1817 and headquartered in Montreal, Canada, Bank of Montreal offers personal and commercial banking, wealth management, and investment advisory services primarily across North America. Its personal banking products include checking accounts, credit cards, mortgages, and personal loans, while commercial banking provides capital raising, treasury management, and trade finance. The bank also delivers insurance products such as life, travel, and annuities, alongside reinsurance solutions. BMO serves clients through approximately 1,300 branches, 4,700 ATMs, and digital banking platforms.

BMO achieved a 5-year revenue CAGR of 17.9% from FY2020 to FY2025. Annual revenue expanded from $32.49B in FY2021 to $78.56B in FY2024 before decreasing 0.5% to $78.15B in FY2025. Net income increased from $7.75B in FY2021 to a peak of $13.54B in FY2022, settling at $8.71B in FY2025 with an 11.1% net margin. Operating margin was 14.8% in FY2025, down from 48.0% in FY2022. For the trailing twelve months ending July 31, 2026, revenue stood at $35.67B with an operating margin of 30.5%. In the latest quarter, revenue rose 12.0% year-over-year, while quarterly earnings fell 24.2%.

As of July 31, 2026, Bank of Montreal held $415.73B in cash and short-term investments against total debt of $167.42B, resulting in net cash of $248.30B. Total assets stood at $1.54T with shareholders' equity of $86.57B, a current ratio of 0.56, and a debt-to-equity ratio of 1.93. In FY2025, operating cash flow was $10.24B and free cash flow reached $8.51B. Capital expenditures were $1.73B, while the bank returned capital via $3.40B in share buybacks and $5.03B in dividends paid.

Bank of Montreal trades at a trailing P/E of 18.9x and a forward P/E of 14.5x, both above the median of its US-listed Financial Services peers at 12.1x and 10.8x, respectively. Its price-to-sales ratio of 3.3x sits slightly above the peer median of 3.2x, while price-to-book is 2.0x. Over the past year, BMO delivered a return of 38.5%, outperforming the S&P 500 (SPY) return of 16.8%. Over a 5-year period, BMO gained 92.6% compared to 83.0% for the benchmark index.

BMO pays a forward annual dividend of $4.82 per share, representing a dividend yield of 2.88% and a payout ratio of 37.7%. The bank has paid dividends for 33 consecutive years, delivering a 5-year annualized dividend growth rate of 7.9%. Its last ex-dividend date was October 30, 2026.

Wall Street coverage comprises 2 Strong Buy, 3 Buy, 7 Hold, and 3 Sell ratings. The mean price target of $166.90 indicates a 0.1% decline compared to the last close of $167.07. For the fiscal year ending October 31, 2026, consensus estimates project EPS of $14.74, reflecting 21.2% growth, on revenue of $39.27B. BMO beat EPS estimates in each of the last 4 quarters. The next earnings date is December 3, 2026.

This page is an AI-written research summary of Bank of Montreal (BMO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: BMO income statement, BMO balance sheet, BMO analyst forecast, BMO chart. See the BMO stock overview for the latest quote and news.