EPS growth is an important number as it indicates the future prospects of Bank Of Montreal. The EPS growth rate, as it is usually called, is typically displayed as a percentage, which at this time is hard to estimate, but revenue growth has been 3.50 % over the last twelve months. The higher the EPS growth rate, the higher the value that is added to shareholders and a good reflection on the performance of the management at Bank Of Montreal.

Bank Of Montreal trades as part of the financial services sector and is in the banking industry. The company CEO is Darryl White. Bank of Montreal provides diversified financial services primarily in North America. The company offers broad range of personal and commercial banking, wealth management and investment banking products and services.

Previous Intraday Performance:

The BMO shares had a previous change of -0.35% which opened at 74.57 and closed at 74.50. It moved to an intraday high of 74.61 and a low of 73.86.

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Historical Performance:

Over the last five trading days, BMO shares returned 1.35% and in the past 30 trading days it returned -4.82%. Over three months, it changed -8.23%. In one year it has changed -0.07% and within that year its 52-week high was 84.71 and its 52-week low was 72.53. BMO stock is 2.72% above its 52 Week Low.

Our calculations result in a 200 day moving average of 76.68 and a 50 day moving average of 77.54. Right now, BMO stock is trading -2.84% below its 200 day moving average and may be a great opportunity to buy, but should check other technical indicators to confirm a buy signal.

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The company has a market cap of $47.6b with 639.3m shares outstanding and a float of 639.3m shares. Trading volume was 570,821 shares and has experienced an average volume of 742,038 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.


The last annual reported EPS for Bank Of Montreal was 6.17 which ended on 31st of October 2017, which according to the previous close, that is a PE of 12.07. Based on 4 analyst estimates, the consensus EPS for the next quarter is 1.75. The trailing twelve month EPS is 6.79, which comes to a trailing twelve month PE of 10.97. Historically, the PE high was 15.20 and the PE low was 8.40. If the stock reached its PE low, that would represent a price of 57.05, which is a decrease of -23.43%.

Below was the last reported quarterly earnings per share:
07-31-2018:  1.82
04-30-2018:  1.74
01-31-2018:  1.68
10-31-2017:  1.55

The dividend per share is currently 2.92, which is a dividend yield of 3.92%. Also, the payout ratio is 42.98%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 77.00, which means it might be undervalued and has a margin of safety of 3.25%

Indicators Also to Watch:

Based on the latest filings, there is 40.40% of institutional ownership. Short-interest was 4,740,306, which was 0.74% of shares outstanding. The short-interest ratio or days-to-cover ratio was 6.08. This stock has some short interest, but it might be normal and no need to worry if long the position.

I calculated the beta to be 1.14

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Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 11.86%, return on assets is 0.64%, profit margin is 16.08%, price-to-sales is 2.66 and price-to-book is 1.57.

Company Score Card:

Results are out of six:
 1  : Growth Expectations Result
 5  : Financial Safety Result
 1  : Past Performance Result
 2  : Valuation Result
 6  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).


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