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ZYBERNO

Stock Report

Updated Aug 28, 2026

BANK OF MONTREAL /CAN/ (BMO)

Financial Services • NYSE

$172.13

Bank of Montreal is a Canadian multinational investment bank and financial services company headquartered in Montreal, Quebec, and one of the Big Five Canadian banks. Founded in 1817 as the first bank in Canada, BMO provides a broad range of personal and commercial banking, wealth management, and investment banking products and services in North America and internationally, including through BMO Harris Bank in the United States following its acquisition of Bank of the West in 2023.

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

43.0/100

WEAK BUSINESS

BANK OF MONTREAL /CAN/ (BMO) scores 43/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full BMO quality analysis & detailed breakdown

VALUATION SIGNAL

⚠

Business Model Limitation

BANK OF MONTREAL /CAN/ operates in the Commercial Banks, NEC industry. Owner Earnings-based DCF analysis — the foundation of both the Margin of Safety and the Brina Gap — is not well-suited to companies whose business model is structurally built around leverage: banks, insurers, mortgage companies, and REITs. These businesses are typically valued using sector-specific metrics such as Price-to-Book, Price-to-FFO, or Net Asset Value. Treat these signals as directional only.

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

-42.4%

Overvalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

🎯 Expected Annual Return →

-25.5%

5-year annualised assuming price converges to intrinsic value

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full BMO valuation analysis · → View full BMO Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):AVERAGE (10.6%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.00x)

Operating Margin (Operational Efficiency):CRITICAL (0.0%)

Return on Capital (Capital Efficiency):CRITICAL (0.0%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

BANK OF MONTREAL /CAN/ (BMO) stock report — Zyberno Score 43/100 (WEAK BUSINESS), Margin of Safety -42.4%, -26% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, BANK OF MONTREAL /CAN/ (BMO) trades at $172.13 against an estimated intrinsic value per share of $120.88 — a -42.4% Margin of Safety based on Owner Earnings of $19.21B TTM, projected at -38.7% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of -25.5% annually.

Over the trailing twelve months, BMO generated $19.21B in Owner Earnings. Capital was deployed as follows: $3.61B paid as dividends, $637.14M invested in capital expenditures. Owner Earnings have declined at 38.7% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:172.13

Market Cap:$122.02B

Valuation Multiples (4)

P/E Ratio:

14.34x

📊 Click to view full BMO P/E analysis →

P/B Ratio:2.00x

P/S Ratio:4.65x

Peg Ratio:1.09x

Enterprise Metrics (2)

Enterprise Value:$74.06B

Pfcf Ratio:6.35x

Price Action & Momentum (3)

12-1 Momentum:

+62.3% (85th pctile)

📈 Click to view full BMO Momentum analysis →

Momentum Percentile:85 / 100

% of 52-Week High:66.4%

B. Profitability Assessment

Return Metrics (2)

ROE:

10.6%

📊 Click to view full BMO ROE analysis →

ROA:0.6%

Margin Analysis (2)

Net Margin Ttm:24.6%

Ebitda Margin:0.0%

TTM Performance (1)

Net Margin Ttm:24.6%

Yield Metrics (3)

Earnings Yield:$6.97

Owner Earnings Yield:$15.74

Dividend Yield:3.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.15

📊 Click to view full BMO Earnings Surprise analysis →

EPS Surprise vs Expected:11.6%

Latest Earnings Filed:2026-02-25

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):6.0%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):5.4%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-38.7%

Operating Cash Flow Growth Rate (Linear):-35.1%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:999.00x

Quick Ratio:999.00x

Cash Ratio:999.00x

Leverage Analysis (3)

Debt To Equity Ttm:0.00x

Debt-to-Equity Ratio:0.00x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:0.00x

Times Interest Earned:0.00

Capital Structure (4)

Working Capital:0.00

Cash And Cash Equivalents:47,965,859,176.00

Long Term Debt:$0.00

Net Debt:-$47.97B

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $26.22B

Linear Growth: 6.0%

📊 Click to view full BMO Revenue analysis & methodology →

Cost Of Revenue Ttm:$0.00

Profitability Breakdown (2)

$0.00$0.00

Bottom Line Performance (3)

Net income TTM: $6.46B

Linear Growth: 5.4%

📊 Click to view full BMO Net Income analysis & methodology →

Income Before Tax:$0.00

Ebitda Ttm:0.00

Operating Expenses (5)

Operating Expenses:0.00

R And D Expense:0.00

Sga Expense:0.00

Income Tax Expense:$2.12B

Interest Expense:28,721,282,740.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:0.0%

Ebitda Margin:0.0%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$1.04T

Current Assets:$0.00

Ppe Net:4,371,016,880.00

Goodwill:11,830,933,148.00

Intangible Assets:$3.57B

Liability Structure (4)

Total Liabilities:976,987,054,852.00

Current Liabilities:0.00

Long Term Debt:$0.00

Short Term Debt:$0.00

Equity & Capital (3)

Equity:$61.05B

Retained Earnings:$0.00

Common Stock:0.00

Working Capital Items (3)

Accounts Receivable:0.00

Inventory:0.00

Accounts Payable:0.00

Special Items (2)

Contract Liabilities:0.00

Stock Based Compensation:0.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $5.10B

Linear Growth: -35.1%

Free cash flow TTM: $4.47B

Linear Growth: -38.7%

📊 Click to view full BMO Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:$212.14M

Capital Expenditures Ttm:637,143,340.00

Financing Activities (3)

Financing Cash Flow:-$446.36M

Dividends Paid Ttm:3,606,444,872.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):12.02

Eps diluted TTM: $12.00

Linear Growth: 2.6%

📊 Click to view full BMO EPS analysis & methodology →

Earnings Per Share Ttm:$9.11

Revenue & Cash Per Share (3)

Sales Per Share Ttm:36.99

Operating Cash Flow Per Share:$10.28

Fcf Per Share Ttm:27.10

Book Value & Capital (2)

Book Value Per Share:$86.11

Cash Per Share:67.66

Dividend Policy (1)

Dividend Payout Ratio:55.43x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.03x

Working Capital Turnover Ttm:-999.00x

Receivables Management (2)

Receivables Turnover Ttm:-999.00x

Days Sales Outstanding Ttm:-999.00

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:-999.00

Cash Conversion Cycle:-999.00

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:60.00

Quality Score:90.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $19.21B

Linear Growth: -38.7%

📊 Click to view full BMO Owner Earnings analysis & methodology →

Owner Earnings Per Share:$27.10

Owner Earnings Yield:$15.74

Growth Assessment (1)

Owner Earnings Growth Rate:-$38.65

Intrinsic Value Models (1)

Intrinsic Value:

$85.69B

📊 Click to view full BMO DCF valuation →

Margin of Safety (1)

Margin Of Safety:

-42.4%

📊 Click to view full BMO valuation analysis →

Return Scenarios (1)

Theoretical 5-Year Return:

-25.5%

📊 Click to view full BMO expected return analysis →

Investment Assessment (1)

Buffett Assessment:Overvalued

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (2)

Revenue Growth Rate (Linear):6.0%

Net Income Growth Rate (Linear):5.4%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-38.7%

Operating Cash Flow Growth Rate (Linear):-35.1%

Other Growth Rates (1)

Owner Earnings Growth Rate:-$38.65

C. Company Profile & Context

Corporate Information (6)

Symbol:BMO

Company Name:BANK OF MONTREAL /CAN/

Sector:Financial Services

Industry:Commercial Banks, NEC

Exchange:NYSE

Country:Canada

Market Classification (3)

Market Cap Category:N/A

Price Category:high

Volume Category:N/A

Share Structure (3)

Shares Outstanding:708.91M

Shares Outstanding Basic:0

Shares Outstanding Diluted:0

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-28 08:00:10 UTC

Data Timestamp:2026-08-28T08:00:10.213081