| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 66 | 13.1x | 17.3x | Top tier | |
Growth | 45 | 63.7% | 7.1% | Around median | |
Quality | 62 | — | — | Around median | |
Safety | 10 | — | — | Bottom tier | |
Capital Return | 97 | 3.01% | 0.06% | Top tier | |
Momentum | 87 | 36.1% | -1.6% | Top tier | |
Sentiment | 68 | 8 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Bank of Montreal, listed on the NYSE under the ticker BMO, operates through personal and commercial banking in Canada and the United States, wealth management, and capital markets. It generates income from net interest on lending and funding, and from fees for investment management, transaction banking services, cards, underwriting, and trading. Its One Client strategy connects these activities to increase the products each client uses and deepen their relationship with the bank, while using its deposit base to fund loan growth.
Net revenue in quarter 3 of fiscal year 2026, ended 2026-07-31, was approximately 10.1 billion Canadian dollars, up 12.0% from the same quarter a year earlier, when it was 9.0 billion Canadian dollars. However, net income fell to 1.7 billion Canadian dollars, compared with 2.3 billion Canadian dollars in quarter 3 of fiscal year 2025, and diluted earnings per share were 2.4 Canadian dollars versus 3.14 Canadian dollars in the comparable period. The operating margin according to EL7 data was 25.1% in quarter 3 of fiscal year 2026, compared with 36.7% in quarter 2 of fiscal year 2026; therefore, the increase in net revenue does not mean reported profitability improved alongside it.
The discussion of results for quarter 3 of fiscal year 2026, ended 2026-07-31, showed that the business mix benefited from wealth management and capital markets fees, and from lending and operating deposits in Canadian and U.S. banking. Meanwhile, reported results included a charge primarily related to goodwill associated with the announced sale of the transportation finance and vendor finance businesses. The portfolio reshaping coincides with announced sales of U.S. branches and Moneris Canada, and an agreement to acquire the capital markets business of Euroz Hartleys Group, linking BMO's trajectory to reallocating resources toward relationships and activities targeting higher returns.
Q3 FY2026
When: 2026-12-02
Net revenue at the 10.1 billion Canadian dollar threshold in the expected earnings announcement
Operating margin according to EL7 data at the 25.1% threshold in the expected earnings announcement
When:
The industry-multiple value is 191 dollars, within a range of 164 dollars to 217 dollars, and measures the valuation of BMO's book value using a median multiple of 1.6 among 16 peer companies. The median analyst target is 83 dollars, within a range of 74 dollars to 580 dollars in the 2026-10-19 snapshot; this is a low-confidence indicative estimate based on two analysts and reflects their expectations for growth and profitability, with analyst targets inherently tending toward optimism. The two results do not converge, as the industry-multiple value exceeds the median target, because the former values the bank based on its book value and peer multiples, while the latter relies on analyst expectations; the target range is also much wider than the industry-method range. The average consensus target of 204.75 dollars differs from the median of 83 dollars, so the average and median do not represent a single agreed-upon estimate.
Figures in the text are as of 2026-10-20; the live price is shown at the top of the page.
BMO combines net interest income on loans and funding with fees from banking, wealth management, and capital markets in Canada and the United States. In quarter 3 of fiscal year 2026, ended 2026-07-31, net revenue was 10.1 billion Canadian dollars, up 12.0% from the same quarter a year earlier. In the U.S. business, commercial loan balances increased 4% from the previous quarter and transaction banking services fees rose 15% from the same quarter a year earlier, illustrating the role of lending and related services in the One Client strategy.
Net income was 1.7 billion Canadian dollars in quarter 3 of fiscal year 2026, ended 2026-07-31, compared with 2.3 billion Canadian dollars in quarter 3 of fiscal year 2025, despite net revenue growth of 12.0% from the same quarter a year earlier. Reported results included a charge primarily related to goodwill associated with the announced sale of the transportation finance and vendor finance businesses, as explained during the 2026-08-25 call. The operating margin according to EL7 data was 25.1% in quarter 3 of fiscal year 2026, compared with 36.7% in quarter 2 of fiscal year 2026, making it necessary to distinguish between business growth and reported profitability.
Automated analysis for informational purposes only — not investment advice.
Achieving a sustainable return on equity of 15% at fiscal year-end
A news report dated 2026-09-29 stated that BMO received the necessary approvals to repurchase and cancel up to 25 million common shares through September 2027. The diluted share count was 500.2 million shares in quarter 3 of fiscal year 2026, ended 2026-07-31, compared with 720.8 million shares in quarter 3 of fiscal year 2025, down 30.6% from the same quarter a year earlier, and this does not establish that the new program caused that previous decline. Management explained during the 2026-08-25 call that meeting clients' quality growth opportunities takes priority over repurchases in capital allocation, so execution remains tied to business needs.
In the discussion of quarter 3 of fiscal year 2026, ended 2026-07-31, management said that direct exposure to trade disruptions is below 1% of the loan portfolio. However, it distinguished this limited exposure from the potentially broader effects of trade policies on Canadian growth, employment, and investment, with consumer insolvencies remaining elevated. During the 2026-08-25 call, it expected provisions for impaired loans in quarter 4 of fiscal year 2026 to remain in line with quarter 3 of fiscal year 2026, so the sustainability of credit improvement will matter more than limited direct exposure alone.
The industry-multiple value is 191 dollars, within a range of 164 dollars to 217 dollars, because it relies on book value and a median multiple of 1.6 among 16 peer companies. The analyst target snapshot dated 2026-10-19 places the median at 83 dollars and the range between 74 dollars and 580 dollars, with low confidence because it relies on two analysts. The average consensus target is 204.75 dollars, a different measure from the median, and the wide target range limits the strength of conclusions based on a single figure. The gap between methods is explained by differences in what they measure, from book value relative to peers to expectations for growth and profitability.