Bank of Montreal (BMO.TO) stock analysis
In our weekly check, Bank of Montreal is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 8.
About Bank of Montreal
Bank of Montreal is a Financial Services company (Banks - Diversified) based in Canada, listed on TSX as BMO.TO.
What our checks show for BMO.TO
Red flags
- The net margin fell by 17.1 points over 5 years, to 11.7%: the company keeps less of each sale as profit.
- The gross margin fell by 54.4 points, to 45.6%: costs are rising faster than prices.
- Analysts expect revenue to shrink about 22.6% a year.
- The stock has fallen as much as 66% from a peak. Would you have held through that?
- Recovering from its deepest fall took about 4.6 years.
- Return on capital (ROCE) is only 0.9%.
Warning signs
- Earnings per share fell 15% a year over the last 3 years.
- Net profit fell 12.2% a year over the last 3 years.
Strengths
- Operating cash flow is 3.52x net profit: the profit arrives as real cash.
- Analysts expect earnings per share to grow about 19% a year over the next years.
- Analysts expect the net margin to improve by 18.2 points from today's 11.7%.
- Revenue grew 43.7% a year over the last 3 years.
- Free cash flow is 38.8% of revenue: cash for dividends, buybacks or growth.
- A large company: market value $118 billion.
Next earnings report: 2026-12-02
Similar companies
BNS · CM · BBVA · UBS · SMFG · ING
Questions
What grade does Bank of Montreal (BMO.TO) have?
In our weekly check, Bank of Montreal is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 8. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of BMO.TO stock?
This week's biggest flags for Bank of Montreal: Margins falling, Gross margin falling, Weak revenue forecast. In total 10 of 25 checks show a warning or a red flag.
What does Bank of Montreal do?
Bank of Montreal is a Financial Services company (Banks - Diversified) based in Canada, listed on TSX as BMO.TO.
When does Bank of Montreal report earnings next?
The next earnings report is expected on 2026-12-02. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-24
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