Switch to:
Bank of Montreal (NYSE:BMO)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Bank of Montreal has an F-score of 3 indicating the company's financial situation is typical for a stable company.

BMO' s 10-Year Piotroski F-Score Range
Min: 1   Max: 6
Current: 4

1
6

During the past 13 years, the highest Piotroski F-Score of Bank of Montreal was 6. The lowest was 1. And the median was 4.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jul14) TTM:Last Year (Jul13) TTM:
Net Income was 1015.55352242 + 975.20661157 + 948.416289593 + 1011.43946616 = $3,951 Mil.
Cash Flow from Operations was 344.922232388 + 1.83654729109 + 0 + -4571.02001907 = $-4,224 Mil.
Revenue was 3856.35864593 + 3710.74380165 + 3730.31674208 + 3944.7092469 = $15,242 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0 Mil.
Total Assets at the begining of this year (Jul13) was $527,695 Mil.
Total Assets was $536,900 Mil.
Long-Term Debt was $3,612 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 Mil.
Net Income was 1063.40057637 + 925.490196078 + 1007.92079208 + 1067.20160481 = $4,064 Mil.

Revenue was 3842.45917387 + 3816.66666667 + 3992.07920792 + 4188.56569709 = $15,840 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0 Mil.
Total Assets at the begining of last year (Jul12) was $546,621 Mil.
Total Assets was $527,695 Mil.
Long-Term Debt was $3,856 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Bank of Montreal's current net income was 3,951. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Bank of Montreal's current cash flow from operations was -4,224. ==> Negative ==> Score 0.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income/Total Assets at the beginning of this year (Jul13)
=3950.61588974/527695.48511
=0.00748654

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jul12)
=4064.01316934/546620.967742
=0.00743479

Bank of Montreal's return on assets of this year was 0.00748654. Bank of Montreal's return on assets of last year was 0.00743479. ==> This year is higher. ==> Score 1.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA =< ROA.

Bank of Montreal's current net income was 3,951. Bank of Montreal's current cash flow from operations was -4,224. ==> -4,224 =< 3,951 ==> CFROA =< ROA ==> Score 0.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year)=Long-Term Debt/Total Assets
=3612.0768527/536900.274474
=0.00672765

Gearing (Last Year)=Long-Term Debt/Total Assets
=3855.90778098/527695.48511
=0.00730707

Bank of Montreal's gearing of this year was 0.00672765. Bank of Montreal's gearing of last year was 0.00730707. ==> This year is lower or equal to last year. ==> Score 1.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year)=Total Current Assets/Total Current Liabilities
=0/0
=

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=0/0
=

Bank of Montreal's current ratio of this year was . Bank of Montreal's current ratio of last year was . ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Bank of Montreal's number of shares in issue this year was 648.6. Bank of Montreal's number of shares in issue last year was 648.3. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year)=Gross Profit/Revenue
=0/15242.1284366
=0

Gross Margin (Last Year)=Gross Profit/Revenue
=0/15839.7707456
=0

Bank of Montreal's gross margin of this year was 0. Bank of Montreal's gross margin of last year was 0. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue/Total Assets at the beginning of this year (Jul13)
=15242.1284366/527695.48511
=0.02888433

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jul12)
=15839.7707456/546620.967742
=0.02897761

Bank of Montreal's asset turnover of this year was 0.02888433. Bank of Montreal's asset turnover of last year was 0.02897761. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+0+1+0+1+0+0+0+0
=3

Good or high score = 8 or 9

Bad or low score = 0 or 1

Bank of Montreal has an F-score of 3 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Bank of Montreal Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
Q1 1111111111
Q2 1010110111
Q3 1010011010
Q4 0000110011
Q5 0100101011
Q6 0000000000
Q7 0101100000
Q8 0000000000
Q9 0000011010
F-score 3332554264

Bank of Montreal Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
Q1 1111111111
Q2 1110111100
Q3 1110000001
Q4 1110001000
Q5 0111111111
Q6 0000000000
Q7 0000000110
Q8 0000000000
Q9 1110000000
F-score 5562334544
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK