| BMO Stock | | | CAD 133.50 0.20 0.15% |
Taking into consideration Bank of Montreal's profitability measurements, Bank of Montreal's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Bank of Montreal's ability to earn profits and add value for shareholders. At this time, Bank of Montreal's
Days Sales Outstanding is very stable compared to the past year. As of the 29th of November 2024,
EV To Sales is likely to grow to 7.85, while
Price To Sales Ratio is likely to drop 2.02. At this time, Bank of Montreal's
Net Income From Continuing Ops is very stable compared to the past year. As of the 29th of November 2024,
Interest Income is likely to grow to about 67.1
B, while
Accumulated Other Comprehensive Income is likely to drop about 1.5
B.
For Bank of Montreal profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Bank of Montreal to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Bank of Montreal utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Bank of Montreal's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Bank of Montreal over time as well as its relative position and ranking within its peers.
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To learn how to invest in Bank Stock, please use our
How to Invest in Bank of Montreal guide.
Please note, there is a significant difference between Bank of Montreal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bank of Montreal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank of Montreal's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Bank of Montreal Current Valuation vs. Shares Outstanding Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Bank of Montreal's current stock value. Our valuation model uses many indicators to compare Bank of Montreal value to that of its competitors to determine the firm's financial worth.
Bank of Montreal is rated
fifth in shares outstanding category among its peers. It is rated
below average in current valuation category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Bank of Montreal by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Bank of Montreal's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.
Bank Current Valuation vs. Shares Outstanding
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.
Bank of Montreal | Shares Outstanding | = | Public Shares | - | Repurchased |
| = | 729.41 M |
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Bank of Montreal | Enterprise Value | = | Market Cap + Debt | - | Cash |
| = | (77.52 B) |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Bank Current Valuation vs Competition
Bank of Montreal is rated
below average in current valuation category among its peers. After adjusting for long-term liabilities,
total market size of
Financials industry is currently estimated at about
(75.86 Billion). Bank of Montreal has negative current valuation of
(77.52 Billion) contributing less than 1% to the industry.
Bank of Montreal Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Bank of Montreal, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Bank of Montreal will eventually generate negative long term returns. The profitability progress is the general direction of Bank of Montreal's change in net profit over the period of time. It can combine
multiple indicators of Bank of Montreal, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Bank Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Bank of Montreal. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Bank of Montreal position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Bank of Montreal's important profitability drivers and their relationship over time.
Use Bank of Montreal in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Bank of Montreal position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bank of Montreal will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Bank of Montreal could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bank of Montreal when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Bank of Montreal - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Bank of Montreal to buy it.
The correlation of Bank of Montreal is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Bank of Montreal moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank of Montreal moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Bank of Montreal can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Use Investing Themes to Complement your Bank of Montreal position
In addition to having Bank of Montreal in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
Climate Change
Large and medium sized entities that are committing to fully or partially replace some traditional services or products with renewables sources of energy in order to combat global climate change. The Climate Change theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can
partner with us for reliable portfolio optimization as you plan to utilize
Climate Change Theme or any other
thematic opportunities.
When determining whether Bank of Montreal offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Bank of Montreal's
financial statements, including income statements, balance sheets, and cash flow statements, to assess its
financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Bank Of Montreal Stock.
Outlined below are crucial reports that will aid in making a well-informed decision on Bank Of Montreal Stock: To fully project Bank of Montreal's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Bank of Montreal at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Bank of Montreal's income statement, its balance sheet, and the statement of cash flows.
Potential Bank of Montreal investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Bank of Montreal investors may work on each financial statement separately, they are all related. The changes in Bank of Montreal's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Bank of Montreal's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
