IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
Canada - TSX:IMO - CA4530384086 - Common Stock
124.52 CAD
-1.67 (-1.32%)
IMO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 218 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making IMO a very profitable company, without any liquidiy or solvency issues. IMO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year IMO was profitable.
In the past year IMO had a positive cash flow from operations.
IMO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years IMO had a positive operating cash flow.
1.2 Ratios
IMO has a better Return On Assets (10.64%) than 93.58% of its industry peers.
IMO has a Return On Equity of 18.80%. This is amongst the best in the industry. IMO outperforms 94.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.19%, IMO belongs to the top of the industry, outperforming 95.87% of the companies in the same industry.
IMO had an Average Return On Invested Capital over the past 3 years of 15.78%. This is significantly above the industry average of 6.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.64% | ||
| ROE | 18.8% | ||
| ROIC | 12.19% |
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 has a better Profit Margin (9.51%) than 60.55% of its industry peers.
In the last couple of years the Profit Margin of IMO has grown nicely.
The Operating Margin of IMO (12.03%) is comparable to the rest of the industry.
IMO's Operating Margin has improved in the last couple of years.
IMO has a Gross Margin of 22.75%. This is comparable to the rest of the industry: IMO outperforms 49.54% of its industry peers.
In the last couple of years the Gross Margin of IMO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.03% | ||
| PM (TTM) | 9.51% | ||
| GM | 22.75% |
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.
Compared to 1 year ago, IMO has less shares outstanding
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
An Altman-Z score of 4.39 indicates that IMO is not in any danger for bankruptcy at the moment.
IMO's Altman-Z score of 4.39 is amongst the best of the industry. IMO outperforms 83.49% of its industry peers.
The Debt to FCF ratio of IMO is 0.89, which is an excellent value as it means it would take IMO, only 0.89 years of fcf income to pay off all of its debts.
IMO has a better Debt to FCF ratio (0.89) than 92.66% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that IMO is not too dependend on debt financing.
IMO has a Debt to Equity ratio of 0.16. This is in the better half of the industry: IMO outperforms 66.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | 4.39 |
ROIC/WACC1.64
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.58 indicates that IMO should not have too much problems paying its short term obligations.
IMO's Current ratio of 1.58 is fine compared to the rest of the industry. IMO outperforms 72.94% of its industry peers.
A Quick Ratio of 1.34 indicates that IMO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.34, IMO is doing good in the industry, outperforming 69.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
IMO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.07%.
The Earnings Per Share has been growing by 35.08% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.30% in the past year.
IMO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.60% yearly.
EPS 1Y (TTM)-2.07%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-7.51%
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 4.77% on average per year.
Based on estimates for the next years, IMO will show a decrease in Revenue. The Revenue will decrease by -1.01% on average per year.
EPS Next Y-10.17%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
EPS Next 5Y4.77%
Revenue Next Year-1.44%
Revenue Next 2Y3.16%
Revenue Next 3Y1.47%
Revenue Next 5Y-1.01%
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
With a Price/Earnings ratio of 13.91, IMO is valued correctly.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than 66.06% of the companies in the same industry.
When comparing the Price/Earnings ratio of IMO to the average of the S&P500 Index (26.03), we can say IMO is valued slightly cheaper.
IMO is valuated correctly with a Price/Forward Earnings ratio of 16.84.
The rest of the industry has a similar Price/Forward Earnings ratio as IMO.
IMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 16.84 |
4.2 Price Multiples
IMO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IMO is cheaper than 70.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IMO indicates a somewhat cheap valuation: IMO is cheaper than 69.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.92 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
The excellent profitability rating of IMO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.25%, IMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.34, IMO pays a bit more dividend than its industry peers.
IMO's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
On average, the dividend of IMO grows each year by 23.44%, which is quite nice.
IMO has been paying a dividend for at least 10 years, so it has 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
27.94% of the earnings are spent on dividend by IMO. This is a low number and sustainable payout ratio.
IMO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.94%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
TSX:IMO (11/4/2025, 7:00:00 PM)
124.52
-1.67 (-1.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners27.96%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap62.50B
Revenue(TTM)51.36B
Net Income(TTM)4.70B
Analysts52.17
Price Target111.37 (-10.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend2.37
Dividend Growth(5Y)23.44%
DP27.94%
Div Incr Years30
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.62%
Min EPS beat(2)12.06%
Max EPS beat(2)15.18%
EPS beat(4)4
Avg EPS beat(4)12.82%
Min EPS beat(4)10.95%
Max EPS beat(4)15.18%
EPS beat(8)8
Avg EPS beat(8)11.2%
EPS beat(12)12
Avg EPS beat(12)10.73%
EPS beat(16)13
Avg EPS beat(16)10.11%
Revenue beat(2)0
Avg Revenue beat(2)-8.99%
Min Revenue beat(2)-9.09%
Max Revenue beat(2)-8.9%
Revenue beat(4)0
Avg Revenue beat(4)-16.69%
Min Revenue beat(4)-27.99%
Max Revenue beat(4)-8.9%
Revenue beat(8)0
Avg Revenue beat(8)-19.15%
Revenue beat(12)0
Avg Revenue beat(12)-17.7%
Revenue beat(16)1
Avg Revenue beat(16)-15.69%
PT rev (1m)2.62%
PT rev (3m)6.07%
EPS NQ rev (1m)4.99%
EPS NQ rev (3m)15.17%
EPS NY rev (1m)0%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)22.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 16.84 | ||
| P/S | 1.26 | ||
| P/FCF | 13.92 | ||
| P/OCF | 9.97 | ||
| P/B | 2.5 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)8.95
EY7.19%
EPS(NY)7.39
Fwd EY5.94%
FCF(TTM)8.95
FCFY7.18%
OCF(TTM)12.49
OCFY10.03%
SpS98.49
BVpS49.81
TBVpS49.48
PEG (NY)N/A
PEG (5Y)0.4
Graham Number100.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.64% | ||
| ROE | 18.8% | ||
| ROCE | 15.88% | ||
| ROIC | 12.19% | ||
| ROICexc | 13.02% | ||
| ROICexgc | 13.08% | ||
| OM | 12.03% | ||
| PM (TTM) | 9.51% | ||
| GM | 22.75% | ||
| FCFM | 9.08% |
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
ROICexgc growth 3Y20.23%
ROICexgc 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 Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.89 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 86.9% | ||
| Cap/Sales | 3.6% | ||
| Interest Coverage | 212.36 | ||
| Cash Conversion | 78.43% | ||
| Profit Quality | 95.55% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 4.39 |
F-Score6
WACC7.43%
ROIC/WACC1.64
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)-2.07%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-5.56%
EPS Next Y-10.17%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
EPS Next 5Y4.77%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-7.51%
Revenue Next Year-1.44%
Revenue Next 2Y3.16%
Revenue Next 3Y1.47%
Revenue Next 5Y-1.01%
EBIT growth 1Y-11.87%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year31.2%
EBIT Next 3Y11.89%
EBIT Next 5Y7.65%
FCF growth 1Y8.64%
FCF growth 3Y-1.98%
FCF growth 5Y8.05%
OCF growth 1Y5.34%
OCF growth 3Y2.98%
OCF growth 5Y6.19%
IMPERIAL OIL LTD / IMO.CA FAQ
Can you provide the ChartMill fundamental rating for IMPERIAL OIL LTD?
ChartMill assigns a fundamental rating of 6 / 10 to IMO.CA.
What is the valuation status for IMO stock?
ChartMill assigns a valuation rating of 5 / 10 to IMPERIAL OIL LTD (IMO.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for IMPERIAL OIL LTD?
IMPERIAL OIL LTD (IMO.CA) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for IMO stock?
The Earnings per Share (EPS) of IMPERIAL OIL LTD (IMO.CA) is expected to decline by -10.17% in the next year.
How sustainable is the dividend of IMPERIAL OIL LTD (IMO.CA) stock?
The dividend rating of IMPERIAL OIL LTD (IMO.CA) is 6 / 10 and the dividend payout ratio is 27.94%.