IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
TSX:IMO - Toronto Stock Exchange - CA4530384086 - Common Stock - Currency: CAD
Overall IMO gets a fundamental rating of 7 out of 10. We evaluated IMO against 209 industry peers in the Oil, Gas & Consumable Fuels industry. IMO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. IMO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
IMO had positive earnings in the past year.
In the past year IMO had a positive cash flow from operations.
Of the past 5 years IMO 4 years were profitable.
In the past 5 years IMO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.13%, IMO belongs to the best of the industry, outperforming 93.30% of the companies in the same industry.
IMO's Return On Equity of 20.00% is amongst the best of the industry. IMO outperforms 93.30% of its industry peers.
IMO's Return On Invested Capital of 12.90% is amongst the best of the industry. IMO outperforms 93.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IMO is significantly above the industry average of 7.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 20% | ||
| ROIC | 12.9% |
ROA(3y)13.3%
ROA(5y)8.22%
ROE(3y)25.05%
ROE(5y)15.58%
ROIC(3y)15.78%
ROIC(5y)N/A
1.3 Margins
IMO's Profit Margin of 9.47% is fine compared to the rest of the industry. IMO outperforms 62.68% of its industry peers.
In the last couple of years the Profit Margin of IMO has grown nicely.
Looking at the Operating Margin, with a value of 12.01%, IMO is in line with its industry, outperforming 55.02% of the companies in the same industry.
IMO's Operating Margin has improved in the last couple of years.
IMO's Gross Margin of 22.73% is in line compared to the rest of the industry. IMO outperforms 45.45% of its industry peers.
IMO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.01% | ||
| PM (TTM) | 9.47% | ||
| GM | 22.73% |
OM growth 3Y11.07%
OM growth 5Y14.66%
PM growth 3Y12.16%
PM growth 5Y7.59%
GM growth 3Y1.78%
GM growth 5Y3.23%
2. Health
2.1 Basic Checks
IMO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
IMO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for IMO has been reduced compared to 5 years ago.
The debt/assets ratio for IMO has been reduced compared to a year ago.
2.2 Solvency
IMO has an Altman-Z score of 4.23. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.23, IMO belongs to the top of the industry, outperforming 85.17% of the companies in the same industry.
IMO has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
The Debt to FCF ratio of IMO (0.86) is better than 91.87% of its industry peers.
IMO has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of IMO (0.16) is better than 65.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 4.23 |
ROIC/WACC1.77
WACC7.28%
2.3 Liquidity
IMO has a Current Ratio of 1.48. This is a normal value and indicates that IMO is financially healthy and should not expect problems in meeting its short term obligations.
IMO's Current ratio of 1.48 is fine compared to the rest of the industry. IMO outperforms 72.25% of its industry peers.
A Quick Ratio of 1.22 indicates that IMO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.22, IMO is doing good in the industry, outperforming 69.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.36% over the past year.
The Earnings Per Share has been growing by 35.08% on average over the past years. This is a very strong growth
Looking at the last year, IMO shows a small growth in Revenue. The Revenue has grown by 1.34% in the last year.
Measured over the past years, IMO shows a quite strong growth in Revenue. The Revenue has been growing by 8.60% on average per year.
EPS 1Y (TTM)8.36%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%13%
Revenue 1Y (TTM)1.34%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%1.91%
3.2 Future
IMO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.43% yearly.
IMO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.38% yearly.
EPS Next Y-13.05%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
EPS Next 5Y5.43%
Revenue Next Year4.54%
Revenue Next 2Y3.77%
Revenue Next 3Y1.4%
Revenue Next 5Y-1.38%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.91 indicates a reasonable valuation of IMO.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than the industry average as 67.94% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.31, IMO is valued rather cheaply.
The Price/Forward Earnings ratio is 13.71, which indicates a correct valuation of IMO.
IMO's Price/Forward Earnings ratio is in line with the industry average.
IMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 13.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IMO is valued a bit cheaper than 68.42% of the companies in the same industry.
70.33% of the companies in the same industry are more expensive than IMO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.13 | ||
| EV/EBITDA | 7.16 |
4.3 Compensation for Growth
IMO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.68%.
IMO's Dividend Yield is a higher than the industry average which is at 6.43.
IMO's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
The dividend of IMO is nicely growing with an annual growth rate of 23.44%!
IMO has paid a dividend for at least 10 years, which is a reliable track record.
IMO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)23.44%
Div Incr Years30
Div Non Decr Years34
5.3 Sustainability
IMO pays out 25.95% of its income as dividend. This is a sustainable payout ratio.
IMO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.95%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
TSX:IMO (6/13/2025, 7:00:00 PM)
111.15
+3.86 (+3.6%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners26.57%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap56.58B
Analysts66.96
Price Target100.94 (-9.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend2.37
Dividend Growth(5Y)23.44%
DP25.95%
Div Incr Years30
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.06%
Min EPS beat(2)10.95%
Max EPS beat(2)15.18%
EPS beat(4)4
Avg EPS beat(4)12.2%
Min EPS beat(4)9.59%
Max EPS beat(4)15.18%
EPS beat(8)8
Avg EPS beat(8)9.93%
EPS beat(12)12
Avg EPS beat(12)13.18%
EPS beat(16)12
Avg EPS beat(16)8.63%
Revenue beat(2)0
Avg Revenue beat(2)-18.54%
Min Revenue beat(2)-27.99%
Max Revenue beat(2)-9.09%
Revenue beat(4)0
Avg Revenue beat(4)-18.37%
Min Revenue beat(4)-27.99%
Max Revenue beat(4)-9.09%
Revenue beat(8)0
Avg Revenue beat(8)-19.18%
Revenue beat(12)0
Avg Revenue beat(12)-19.8%
Revenue beat(16)1
Avg Revenue beat(16)-15.55%
PT rev (1m)0.17%
PT rev (3m)-3.16%
EPS NQ rev (1m)-17.83%
EPS NQ rev (3m)-16.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.37%
Revenue NQ rev (1m)-10.88%
Revenue NQ rev (3m)-9.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 13.71 | ||
| P/S | 1.1 | ||
| P/FCF | 12.13 | ||
| P/OCF | 8.8 | ||
| P/B | 2.32 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 7.16 |
EPS(TTM)9.33
EY8.39%
EPS(NY)8.11
Fwd EY7.29%
FCF(TTM)9.16
FCFY8.24%
OCF(TTM)12.64
OCFY11.37%
SpS101.32
BVpS47.95
TBVpS47.63
PEG (NY)N/A
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 20% | ||
| ROCE | 16.8% | ||
| ROIC | 12.9% | ||
| ROICexc | 13.55% | ||
| ROICexgc | 13.61% | ||
| OM | 12.01% | ||
| PM (TTM) | 9.47% | ||
| GM | 22.73% | ||
| FCFM | 9.04% |
ROA(3y)13.3%
ROA(5y)8.22%
ROE(3y)25.05%
ROE(5y)15.58%
ROIC(3y)15.78%
ROIC(5y)N/A
ROICexc(3y)16.85%
ROICexc(5y)N/A
ROICexgc(3y)16.94%
ROICexgc(5y)N/A
ROCE(3y)20.55%
ROCE(5y)N/A
ROICexcg growth 3Y20.23%
ROICexcg growth 5Y25.24%
ROICexc growth 3Y20.24%
ROICexc growth 5Y25.25%
OM growth 3Y11.07%
OM growth 5Y14.66%
PM growth 3Y12.16%
PM growth 5Y7.59%
GM growth 3Y1.78%
GM growth 5Y3.23%
F-Score6
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.86 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 87.35% | ||
| Cap/Sales | 3.43% | ||
| Interest Coverage | 162.95 | ||
| Cash Conversion | 78.29% | ||
| Profit Quality | 95.52% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 4.23 |
F-Score6
WACC7.28%
ROIC/WACC1.77
Cap/Depr(3y)89.4%
Cap/Depr(5y)70.15%
Cap/Sales(3y)3.24%
Cap/Sales(5y)3.31%
Profit Quality(3y)82.59%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.36%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%13%
EPS Next Y-13.05%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
EPS Next 5Y5.43%
Revenue 1Y (TTM)1.34%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%1.91%
Revenue Next Year4.54%
Revenue Next 2Y3.77%
Revenue Next 3Y1.4%
Revenue Next 5Y-1.38%
EBIT growth 1Y1.11%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year25.88%
EBIT Next 3Y11.55%
EBIT Next 5Y7.3%
FCF growth 1Y-23.49%
FCF growth 3Y-1.98%
FCF growth 5Y8.05%
OCF growth 1Y-16.97%
OCF growth 3Y2.98%
OCF growth 5Y6.19%