Positioning no disclosures inside 60 days, left as found
Options put/call open interest 0.65, read 2026-11-01
Ethical does not pass the values gate
Price171.13 USD
Fair value175.04
Value readFairas of 6 Nov 2026
Our investment reviews on this name
2026-11-01Read Accumulation171.13+0.0% to today ✓Markdown gives way to Accumulation
2026-10-25Read Markdown166.05+3.1% to today Distribution gives way to Markdown first Markdown read since October
2026-10-18Read Distribution166.05+3.1% to today Markdown gives way to Distribution
2026-10-11Read Markdown172.30-0.7% to today ✓Distribution gives way to Markdown
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Bank of Montreal holds its Markup at $171.13. The statistical read favours the buyers, held for 2 days.
As held on the ledger · 2026-11-06
Phase
Markup
Quantitative state
The statistical read favours the buyers, held for 2 days
Price at the screen
$171.13
Valuation
19.87 trailing · 15.00 forward price to earnings
Values screen
FAIL
Beta
1.12
The Workings
Five Screens, Shown in Full
Does not pass. Business activity
Test
Figure
Limit
What it means
Status
Business activity
Excluded
Core business clean
Financial sector: banks
Fail
Debt load
0.00%
Below 33%
Interest-bearing debt is just 0.0% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
0.00%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
0.00%
Below 49%
Money owed to the company is 0.0% of assets, under the 49% limit.
Pass
Revenue purity
176.01%
Below 5%
176.0% of revenue comes from non-compliant sources, over the 5% line.
Fail
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Bank of Montreal does not clear the screen at the business-activity stage. It operates in conventional financial services, which the screen treats as interest-based, so the financial ratios are not the deciding factor here.
Read as at 2026-11-05. It updates when the underlying figures move, and past reads are kept below.
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What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads Fair vs our fair value, as of 6 Nov 2026: it trades at roughly a 1% discount to our $175.04 fair value, moderate competitive moat, 12.00% revenue growth.
Fair value range in USD, drawn from the 2026-11-06 screen. The gold marker is the market price at the same screen. A 2.2% discount to the base estimate.
Where our models see it going: fair-value estimate $175.04, with a range of $132.00 to $219.82, dated to the 2026-11-06 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Banking Beneath the Maple Leaf
Think of Bank of Montreal as the foundation of Canadian finance, a cornerstone of economic stability. With revenue growth at 16%, it stands out as a solid player in the financial sector, leveraging its domestic market prowess. Its forward P/E of 14.7x hints at a market that's somewhat skeptical, yet its profit margin of 28%, and ROE of 11%, suggest it's performing well above average, potentially undervalued.
However, while the numbers are promising, we must recognize the elephant in the room—Bank of Montreal fails our ethical screen. Its business activity is at odds with our ethical-first investment criteria, which is a crucial part of our analysis. It's a stark reminder that not all financial success translates to ethical alignment, an important factor in today's investment landscape.
In conclusion, despite the attractive valuation and growth prospects, Bank of Montreal does not align with our ethical standards, leading us to pass on this opportunity. Staying true to our principles is paramount, even when tempted by financial metrics. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The main risks here are ordinary market swings and the chance our fair-value read proves too optimistic.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
BMO trades on the NYSE. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markdown to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 3.1% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 12% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 56%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (3 analysts) rates it hold, with a mean price target of $169.
2026-10-25Markdown · changed$166.05+0.0%Entry 16
The framework has shifted from distribution to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 11% above its long-term trend line with momentum reading bearish. Over the past year the shares are up 56%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (3 analysts) rates it hold, with a mean price target of $168.
The framework has shifted from markdown to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 3.6% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 22% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 56%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (3 analysts) rates it hold, with a mean price target of $167.
2026-10-11Markdown · changed$172.30+0.0%Entry 14
The framework has shifted from distribution to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 22% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 56%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (3 analysts) rates it hold, with a mean price target of $166.
2026-10-02Distribution$172.30-0.3%Entry 13
Our analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.3% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 22% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 56%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (3 analysts) rates it hold, with a mean price target of $166.
2026-08-25Distribution$172.90+0.0%Entry 12
Our analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 22% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 56%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (3 analysts) rates it hold, with a mean price target of $167. It reported earnings in this window, a natural checkpoint for the thesis.
2026-08-24Distribution$172.90+0.0%Entry 11
Our analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 22% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 56%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (3 analysts) rates it hold, with a mean price target of $145. It reported earnings in this window, a natural checkpoint for the thesis.
2026-08-23Distribution$172.90+0.0%Entry 10
Our analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 22% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 56%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (3 analysts) rates it hold, with a mean price target of $145. It reported earnings in this window, a natural checkpoint for the thesis.
2026-08-22Distribution$172.90+0.0%Entry 9
Our analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 22% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 56%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (3 analysts) rates it hold, with a mean price target of $145. It reported earnings in this window, a natural checkpoint for the thesis.
The framework has shifted from accumulation to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 4.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 22% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 56%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (3 analysts) rates it hold, with a mean price target of $145. It reported earnings in this window, a natural checkpoint for the thesis.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
