# Bank of Montreal (BMO.TO)

Canonical: https://gigainvestors.com/s/BMO.TO

Analysis as of: 2026-10-16T07:33:38.741Z. Financial observations: FY2015–FY2026.

Listing currency: CAD. Reporting currency: CAD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CAD 235.42 per share; close as of 2026-10-15.

Estimated value: low CAD 117.69 per share, central CAD 147.12 per share, high CAD 196.16 per share. Buy at or below the central value CAD 147.12 per share. Valuation as of 2026-10-16T07:33:38.741Z; scenarios are not confidence intervals.

Expected annual return: 8.5% at the stated quote. About 8.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: pass

- Financial history: 10 years

- Profitable years in the last ten: 10

- Required profitable years: 9

- Return on common equity variation (informational): 0.40×

Chart: Net income; fiscal year observations.

- FY2016: CAD 2.5B

- FY2017: CAD 5.2B

- FY2018: CAD 5.3B

- FY2019: CAD 5.5B

- FY2020: CAD 4.9B

- FY2021: CAD 7.5B

- FY2022: CAD 13B

- FY2023: CAD 4.1B

- FY2024: CAD 6.9B

- FY2025: CAD 8.3B

### moat: fail

- Tangible common book per share

- Parent-total proxy for preferred equity

- median return on common equity below threshold

- Bank / P&C ROTE, median of available years: 11.8%

- Required median return: 12.0%

- Return uses tangible common equity: Yes

- Bank ROTE, second-lowest year: 7.4%

- Years with reported combined ratio: 0

Chart: Return on tangible common equity; fiscal year observations.

- FY2016: 4.7%

- FY2017: 8.7%

- FY2018: 14.2%

- FY2019: 13.1%

- FY2020: 10.2%

- FY2021: 15.1%

- FY2022: 20.9%

- FY2023: 7.4%

- FY2024: 11.1%

- FY2025: 12.4%

### economics: pass

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- Book value per share + reinvested dividends, annualized return: 7.1%

- Book return interval: 10 years

- Starting book value per share: CAD 82.32

- Ending book value per share: CAD 89.71

Chart: Annual book + dividend return; fiscal year observations.

- FY2017: 12.7%

- FY2018: -31.1%

- FY2019: 19.5%

- FY2020: 18.8%

- FY2021: 11.0%

- FY2022: 33.2%

- FY2023: -14.8%

- FY2024: 17.6%

- FY2025: 15.2%

- LTM to Apr 2026: 5.4%

### management: fail

- Tangible common book per share

- Parent-total proxy for preferred equity

- book per share gain below retained common earnings per share

- Diluted shares, 10-year annual growth: 1.2%

- Diluted shares, 5-year annual growth: 1.6%

- Share growth excluding flagged crisis recapitalisations: 1.2%

- Five-year share growth excluding flagged crisis recapitalisations: 1.6%

- Flagged crisis recapitalisations: 0

- Book created / earnings retained after dividends and buybacks: -0.17×

- Book value created per share: CAD -5.84

- Earnings retained per share after dividends and buybacks: CAD 34.25

Chart: Shares (first year = 100); fiscal year observations.

- FY2015: 100

- FY2016: 103

- FY2017: 105

- FY2018: 102

- FY2019: 104

- FY2020: 104

- FY2021: 104

- FY2022: 103

- FY2023: 110

- FY2024: 113

- FY2025: 112

### accounting: pass

- Financial accounting warning count: 0

- Known restatement years: 0

## Holders

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

The price assumes profits grow 7.5% a year forever · "BMO beats expectations on higher profits in wealth and capital markets, hikes dividend" (ca.finance.yahoo.com, Dec 2025) · net income +17.6%

Story as of 2026-10-16T09:59:57.032Z; price observation 2026-10-15.

The price assumes profits grow 7.5% a year forever

- 2025-05-28: Bank of Montreal (TSX:BMO) Reports Dividend Hike and Positive Earnings Growth ([finance.yahoo.com](https://finance.yahoo.com/news/bank-montreal-tsx-bmo-reports-171748899.html))

- 2025-08-28: Bank of Montreal Q3 Earnings Rise on Higher NII, Lower Provisions ([finance.yahoo.com](https://finance.yahoo.com/news/bank-montreal-q3-earnings-rise-154800385.html))

- 2026-02-25: Bank of Montreal Profit Rises With Lift in Revenue, Drop in Credit-Loss Provision ([finance.yahoo.com](https://finance.yahoo.com/m/03f104b6-9626-3060-bfac-2dd749f1238d/bank-of-montreal-profit-rises.html))

- 2026-05-27: Update: BMO Jumps Premarket After Q2 Adjusted Earnings Beat, Lower Credit Losses, Dividend Increase ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/bmo-jumps-premarket-q2-adjusted-103457378.html))

### Net income · FY2026

net income +17.6%; source https://www.sec.gov/Archives/edgar/data/927971/000119312525307982/d938207d40f.htm; observed 2025-12-04.

- FY2017: CAD 5.2B 

- FY2018: CAD 5.3B 

- FY2019: CAD 5.5B 

- FY2020: CAD 4.9B 

- FY2021: CAD 7.5B 

- FY2022: CAD 13B 

- FY2023: CAD 4.1B 

- FY2024: CAD 6.9B 

- FY2025: CAD 8.3B 

- FY2026: CAD 9.7B 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in diversified banking; annual sales are CAD 78.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/927971/000119312525307982/d938207d40f.htm (filed 2025-12-04); FY2025: revenue 78149000000.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BMO.TO: Bank of Montreal provides diversified financial services primarily in North America. It operates through Canadian Personal and Commercial Banking; U.S. Banking; Wealth Management; and Capital Markets segments. The company offers chequing accounts, savings accounts, money markets and certificates of deposits, debit cards, overdrafts, digital banking, credit cards, loans, mortgages, investment and retirement options, and other banking services; and commercial banking products and services, including financing options and treasury and payment solutions, as well as risk management products. It also offers investing, banking, and wealth management advisory; digital investing services; financial solutions for individuals, families, and businesses; offers investment management services to institutional, retail, and high net worth investors; and diversified insurance, and wealth and pension de-risking solutions. In addition, the company provides individual life, critical illness and annuity products, as well as segregated funds, and group creditor and travel insurance to customers; debt and equity capital-raising, loan origination and syndication, balance sheet management, treasury management, mergers and acquisitions advice, restructurings and recapitalizations, trade finance, and risk mitigation services, as well as a range of banking and other operating services. Further, the company offers research and access to financial markets for institutional, corporate and retail clients through an integrated suite of sales and trading solutions related to debt, foreign exchange, interest rates, credit, equities, securitization, and commodities; provides new product development and origination services, as well as risk management and advisory services for hedging strategies, including in interest rates, foreign exchange rates and commodities prices; and funding and liquidity management services. Bank of Montreal was founded in 1817 and is headquartered in Montreal, Canada.

### Why customers stay

It earns 11.8% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-04); 10-year return on tangible equity observations [[2016,0.046536677985905724],[2017,0.0869961823034562],[2018,0.1420905021304137],[2019,0.13109756097560976],[2020,0.1018565188172043],[2021,0.15056436576515167],[2022,0.2093455003146633],[2023,0.07434849723054572],[2024,0.11082156959920705],[2025,0.12441349855630414]]; median 0.1176175340777556. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CAD 3.4 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-04); Dividend observations: [[2016,3034000000],[2017,3720000000],[2018,2582000000],[2019,2752000000],[2020,2475000000],[2021,2980000000],[2022,2595000000],[2023,2703000000],[2024,3840000000],[2025,5031000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/927971/000119312525307982/d938207d40f.htm (filed 2025-12-04); FY2025: cash repurchases 3396000000 CAD.

### Are managers owners

Insiders own <0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BMO.TO SharesStats.PercentInsiders = 0.034 percentage points; cache date 2026-10-16.

### What the price says

The price assumes profits grow 7.5% a year forever.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-04); Price 235.42; FX 1; original perpetual distributable cash 5.884680106688368; discount 0.1; growth 0.07500348268333885. Same book-value model and 4× ceiling; no ten-year operating fade applies. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-10: CAD 85.36 per share

- 2016-11: CAD 88.53 per share

- 2016-12: CAD 96.57 per share

- 2017-01: CAD 98.43 per share

- 2017-02: CAD 100.79 per share

- 2017-03: CAD 99.33 per share

- 2017-04: CAD 96.66 per share

- 2017-05: CAD 90.67 per share

- 2017-06: CAD 95.22 per share

- 2017-07: CAD 94.56 per share

- 2017-08: CAD 89.61 per share

- 2017-09: CAD 94.43 per share

- 2017-10: CAD 98.83 per share

- 2017-11: CAD 99.27 per share

- 2017-12: CAD 100.59 per share

- 2018-01: CAD 101.33 per share

- 2018-02: CAD 97.44 per share

- 2018-03: CAD 97.32 per share

- 2018-04: CAD 97.51 per share

- 2018-05: CAD 100.44 per share

- 2018-06: CAD 101.62 per share

- 2018-07: CAD 103.11 per share

- 2018-08: CAD 106.97 per share

- 2018-09: CAD 106.54 per share

- 2018-10: CAD 98.43 per share

- 2018-11: CAD 99.13 per share

- 2018-12: CAD 89.19 per share

- 2019-01: CAD 96.18 per share

- 2019-02: CAD 102.62 per share

- 2019-03: CAD 99.99 per share

- 2019-04: CAD 105.82 per share

- 2019-05: CAD 98.12 per share

- 2019-06: CAD 98.92 per share

- 2019-07: CAD 98.80 per share

- 2019-08: CAD 91.26 per share

- 2019-09: CAD 97.58 per share

- 2019-10: CAD 97.50 per share

- 2019-11: CAD 102.22 per share

- 2019-12: CAD 100.64 per share

- 2020-01: CAD 100.93 per share

- 2020-02: CAD 91.21 per share

- 2020-03: CAD 71.06 per share

- 2020-04: CAD 70.77 per share

- 2020-05: CAD 67.92 per share

- 2020-06: CAD 72.26 per share

- 2020-07: CAD 73.28 per share

- 2020-08: CAD 82.78 per share

- 2020-09: CAD 77.84 per share

- 2020-10: CAD 79.33 per share

- 2020-11: CAD 93.33 per share

- 2020-12: CAD 96.78 per share

- 2021-01: CAD 95.12 per share

- 2021-02: CAD 103.98 per share

- 2021-03: CAD 112.02 per share

- 2021-04: CAD 116.01 per share

- 2021-05: CAD 126.19 per share

- 2021-06: CAD 127.06 per share

- 2021-07: CAD 123.53 per share

- 2021-08: CAD 125.56 per share

- 2021-09: CAD 126.45 per share

- 2021-10: CAD 134.37 per share

- 2021-11: CAD 133.04 per share

- 2021-12: CAD 136.19 per share

- 2022-01: CAD 143.88 per share

- 2022-02: CAD 144.73 per share

- 2022-03: CAD 147.11 per share

- 2022-04: CAD 136.21 per share

- 2022-05: CAD 137.59 per share

- 2022-06: CAD 123.78 per share

- 2022-07: CAD 127.66 per share

- 2022-08: CAD 121.25 per share

- 2022-09: CAD 121.07 per share

- 2022-10: CAD 125.49 per share

- 2022-11: CAD 131.38 per share

- 2022-12: CAD 122.66 per share

- 2023-01: CAD 133.90 per share

- 2023-02: CAD 129.32 per share

- 2023-03: CAD 120.38 per share

- 2023-04: CAD 122.13 per share

- 2023-05: CAD 113.22 per share

- 2023-06: CAD 119.64 per share

- 2023-07: CAD 122.54 per share

- 2023-08: CAD 116.37 per share

- 2023-09: CAD 114.58 per share

- 2023-10: CAD 104.79 per share

- 2023-11: CAD 111.38 per share

- 2023-12: CAD 131.11 per share

- 2024-01: CAD 126.64 per share

- 2024-02: CAD 122.84 per share

- 2024-03: CAD 132.25 per share

- 2024-04: CAD 122.97 per share

- 2024-05: CAD 121.55 per share

- 2024-06: CAD 114.83 per share

- 2024-07: CAD 116.45 per share

- 2024-08: CAD 112.71 per share

- 2024-09: CAD 122.04 per share

- 2024-10: CAD 126.88 per share

- 2024-11: CAD 133.50 per share

- 2024-12: CAD 139.55 per share

- 2025-01: CAD 143.88 per share

- 2025-02: CAD 148.76 per share

- 2025-03: CAD 137.42 per share

- 2025-04: CAD 132.09 per share

- 2025-05: CAD 147.37 per share

- 2025-06: CAD 150.91 per share

- 2025-07: CAD 152.94 per share

- 2025-08: CAD 166.19 per share

- 2025-09: CAD 181.35 per share

- 2025-10: CAD 174.23 per share

- 2025-11: CAD 176.91 per share

- 2025-12: CAD 178.25 per share

- 2026-01: CAD 185.37 per share

- 2026-02: CAD 196.31 per share

- 2026-03: CAD 188.42 per share

- 2026-04: CAD 206.84 per share

- 2026-05: CAD 223.93 per share

- 2026-06: CAD 250.67 per share

- 2026-07: CAD 251.47 per share

- 2026-08: CAD 236.24 per share

- 2026-09: CAD 237.97 per share

- 2026-10: CAD 235.18 per share

## Annual estimated value (CAD per share)

- FY2016: low CAD 125.08 per share, central CAD 153.04 per share, high CAD 197.12 per share

- FY2017: low CAD 92.01 per share, central CAD 101.21 per share, high CAD 112.46 per share

- FY2018: low CAD 59.24 per share, central CAD 65.17 per share, high CAD 72.41 per share

- FY2019: low CAD 76.97 per share, central CAD 84.66 per share, high CAD 94.07 per share

- FY2020: low CAD 77.53 per share, central CAD 85.28 per share, high CAD 94.75 per share

- FY2021: low CAD 91.88 per share, central CAD 114.85 per share, high CAD 153.13 per share

- FY2022: low CAD 117.56 per share, central CAD 146.95 per share, high CAD 195.93 per share

- FY2023: low CAD 60.66 per share, central CAD 72.86 per share, high CAD 91.20 per share

- FY2024: low CAD 89.03 per share, central CAD 109.01 per share, high CAD 140.55 per share

- FY2025: low CAD 117.65 per share, central CAD 147.06 per share, high CAD 196.08 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:24.572Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 40-F filing](https://www.sec.gov/Archives/edgar/data/927971/000119312525307982/d938207d40f.htm); period 2025-10-31, filed 2025-12-04.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Andrew Adams](https://gigainvestors.com/MPF): 6,746 BMO shares; USD 1,192,000 reported position value; 0.01% of portfolio; hold; quarter 2026 Q2.