IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
TSX:IMO - Toronto Stock Exchange - CA4530384086 - Common Stock - Currency: CAD
Taking everything into account, IMO scores 6 out of 10 in our fundamental rating. IMO was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. IMO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. IMO has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
IMO had positive earnings in 4 of the past 5 years.
IMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IMO has a Return On Assets of 11.13%. This is amongst the best in the industry. IMO outperforms 93.46% of its industry peers.
With an excellent Return On Equity value of 20.00%, IMO belongs to the best of the industry, outperforming 93.46% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.90%, IMO belongs to the best of the industry, outperforming 95.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IMO is significantly above the industry average of 7.26%.
| 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
The Profit Margin of IMO (9.47%) is better than 61.68% of its industry peers.
IMO's Profit Margin has improved in the last couple of years.
IMO has a Operating Margin (12.01%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of IMO has grown nicely.
IMO has a Gross Margin (22.73%) which is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IMO is creating value.
IMO has less shares outstanding than it did 1 year ago.
IMO has less shares outstanding than it did 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 4.33. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
IMO has a better Altman-Z score (4.33) than 85.51% of its industry peers.
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.
IMO's Debt to FCF ratio of 0.86 is amongst the best of the industry. IMO outperforms 90.65% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that IMO is not too dependend on debt financing.
IMO's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. IMO outperforms 66.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.65
WACC7.8%
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 has a Current ratio of 1.48. This is in the better half of the industry: IMO outperforms 73.36% of its industry peers.
A Quick Ratio of 1.22 indicates that IMO should not have too much problems paying its short term obligations.
IMO's Quick ratio of 1.22 is fine compared to the rest of the industry. IMO outperforms 71.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
IMO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.14%.
IMO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.08% yearly.
Looking at the last year, IMO shows a small growth in Revenue. The Revenue has grown by 1.30% 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)-5.14%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-11.92%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-15.87%
3.2 Future
Based on estimates for the next years, IMO will show a small growth in Earnings Per Share. The EPS will grow by 5.42% on average per year.
IMO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.39% yearly.
EPS Next Y-13.05%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
EPS Next 5Y5.42%
Revenue Next Year1.63%
Revenue Next 2Y2.9%
Revenue Next 3Y1.88%
Revenue Next 5Y-1.39%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.94, which indicates a correct valuation of IMO.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than 64.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.99, IMO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 14.50, the valuation of IMO can be described as correct.
IMO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.36. IMO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 14.5 |
4.2 Price Multiples
70.09% of the companies in the same industry are more expensive than IMO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IMO is valued a bit cheaper than 70.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.83 | ||
| EV/EBITDA | 7.56 |
4.3 Compensation for Growth
IMO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.49%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.75, IMO pays a bit more dividend than its industry peers.
IMO's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
5.2 History
The dividend of IMO is nicely growing with an annual growth rate of 23.44%!
IMO has been paying a dividend for at least 10 years, so it has a reliable track record.
IMO has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of IMO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.95%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
TSX:IMO (8/6/2025, 7:00:00 PM)
117.54
+0.58 (+0.5%)
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 Cap59.83B
Analysts66.09
Price Target105 (-10.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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)3.9%
PT rev (3m)3.04%
EPS NQ rev (1m)10.09%
EPS NQ rev (3m)-12.59%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.97%
Revenue NQ rev (3m)-9.08%
Revenue NY rev (1m)-2.78%
Revenue NY rev (3m)-5.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 14.5 | ||
| P/S | 1.16 | ||
| P/FCF | 12.83 | ||
| P/OCF | 9.3 | ||
| P/B | 2.45 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 7.56 |
EPS(TTM)9.08
EY7.73%
EPS(NY)8.11
Fwd EY6.9%
FCF(TTM)9.16
FCFY7.8%
OCF(TTM)12.64
OCFY10.75%
SpS101.32
BVpS47.95
TBVpS47.63
PEG (NY)N/A
PEG (5Y)0.37
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 | 4.33 |
F-Score6
WACC7.8%
ROIC/WACC1.65
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)-5.14%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-11.92%
EPS Next Y-13.05%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
EPS Next 5Y5.42%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-15.87%
Revenue Next Year1.63%
Revenue Next 2Y2.9%
Revenue Next 3Y1.88%
Revenue Next 5Y-1.39%
EBIT growth 1Y1.11%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year25.88%
EBIT Next 3Y11.55%
EBIT Next 5Y7.29%
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%