Bank of Montreal (FRA:BZZ) Beneish M-Score: -2.58 (As of Aug. 31, 2026)

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FRA:BZZ Bank of Montreal FRA:BZZ
73 GF Score
Price €147.04
GF Value €106.40
Valuation Significantly Overvalued
! 8 Warning Signs
View Full Analysis

What is Bank of Montreal Beneish M-Score?

Bank of Montreal FRA:BZZ -0.65% 73 Beneish M-Score is -2.58 as of Aug. 31, 2026. GuruFocus rates FRA:BZZ with a GF Score™ of 73/100 and a GF Value™ of €106.40 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,391 Banks companies, Bank of Montreal ranks better than 79.44% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Bank of Montreal's Beneish M-Score or its related term are showing as below:

FRA:BZZ' s Beneish M-Score Range Over the Past 10 Years
Min: -3.61   Med: -2.46   Max: 16.7
Current: -2.58

During the past 13 years, the highest Beneish M-Score of Bank of Montreal was 16.70. The lowest was -3.61. And the median was -2.46.

FRA:BZZ
73GF Score
Bank of Montreal FRA:BZZ
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Bank of Montreal Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Bank of Montreal for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0186+0.528 * 1+0.404 * 1.0002+0.892 * 1.0417+0.115 * 1.028
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9931+4.679 * -0.026769-0.327 * 1.1364
=-2.59

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jul26) TTM:Last Year (Jul25) TTM:
Total Receivables was €29,710 Mil.
Revenue was 6146.402 + 5928.555 + 6055.442 + 5685.317 = €23,816 Mil.
Gross Profit was 6146.402 + 5928.555 + 6055.442 + 5685.317 = €23,816 Mil.
Total Current Assets was €0 Mil.
Total Assets was €954,519 Mil.
Property, Plant and Equipment(Net PPE) was €3,927 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,364 Mil.
Selling, General, & Admin. Expense(SGA) was €8,441 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €120,265 Mil.
Net Income was 1084.367 + 1632.42 + 1538.734 + 1405.056 = €5,661 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 16588.089 + 5671.819 + 1112.338 + 7840.187 = €31,212 Mil.
 Total Receivables was €28,000 Mil.
Revenue was 5597.948 + 5526.135 + 6187.798 + 5550.574 = €22,862 Mil.
Gross Profit was 5597.948 + 5526.135 + 6187.798 + 5550.574 = €22,862 Mil.
Total Current Assets was €0 Mil.
Total Assets was €896,093 Mil.
Property, Plant and Equipment(Net PPE) was €3,871 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,396 Mil.
Selling, General, & Admin. Expense(SGA) was €8,159 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €99,348 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(29710.298 / 23815.716) / (27999.757 / 22862.455)
=1.247508 / 1.224705
=1.0186

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(22862.455 / 22862.455) / (23815.716 / 23815.716)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 3927.419) / 954519.231) / (1 - (0 + 3870.928) / 896092.996)
=0.995885 / 0.99568
=1.0002

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=23815.716 / 22862.455
=1.0417

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(1396.108 / (1396.108 + 3870.928)) / (1364.411 / (1364.411 + 3927.419))
=0.265065 / 0.257833
=1.028

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(8441.207 / 23815.716) / (8159.37 / 22862.455)
=0.354439 / 0.356889
=0.9931

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((120264.888 + 0) / 954519.231) / ((99348.403 + 0) / 896092.996)
=0.125995 / 0.110868
=1.1364

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(5660.577 - 0 - 31212.433) / 954519.231
=-0.026769

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Bank of Montreal has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.58 mean?
Bank of Montreal (FRA:BZZ) has a Beneish M-Score of -2.58 as of Aug. 31, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Bank of Montreal and its competitors. According to the industry distribution chart, Bank of Montreal ranks #286 out of 1391 companies in the Banks industry, placing it in the top 20.6%.
Is Bank of Montreal's Beneish M-Score too high?
Bank of Montreal's current Beneish M-Score is -2.58. Based on the distribution chart, Bank of Montreal ranks #286 out of 1391 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Bank of Montreal has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bank of Montreal's Beneish M-Score compare to JPM and BAC?
According to the Banks industry distribution chart, Bank of Montreal ranks #286 out of 1391 companies for Beneish M-Score. This places Bank of Montreal in the top 21% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Banks company?
A good Beneish M-Score depends on the Banks industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Bank of Montreal and its competitors. Bank of Montreal's current Beneish M-Score is -2.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank of Montreal stock overvalued right now?
Based on GuruFocus' analysis, Bank of Montreal (FRA:BZZ) is currently considered Significantly Overvalued. The stock's GF Value™ is €106.40, compared to a current price of €147.04 — trading 38.2% above its estimated fair value. The current Beneish M-Score is -2.58. Bank of Montreal's overall GF Score™ is 73/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Bank of Montreal (FRA:BZZ), the current Beneish M-Score is -2.58 as of Aug. 31, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Bank of Montreal (FRA:BZZ) Overvalued in 2026?

Based on GuruFocus' analysis, Bank of Montreal stock appears to be overvalued. The current stock price of €147.04 is trading 38.2% above its estimated GF Value™ of €106.40. GuruFocus considers Bank of Montreal to be Significantly Overvalued.

Key valuation signals for FRA:BZZ:

  • Beneish M-Score: -2.58
  • GF Value™: €106.40 vs. price of €147.04 (38.2% above fair value)
  • GF Score™: 73/100 with 8 warning signs

No single metric tells the full story. See the FRA:BZZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Bank of Montreal Business Description

Address 129 rue Saint Jacques, Montreal, QC, CAN, H2Y 1L6
Bank of Montreal is a diversified financial services provider based in North America with over CAD 1.47 trillion in assets by the end of fiscal 2025. BMO operates four business segments: Canadian personal and commercial banking, US personal and commercial banking, wealth management, and capital markets. About 60% of BMO's earnings are generated in Canada and 40% in the US.
73GF Score

Get the complete analysis for FRA:BZZ

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€147.04
Price
€106.40
GF Value