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IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis

TSX:IMO - Toronto Stock Exchange - CA4530384086 - Common Stock - Currency: CAD

98.25  -1.42 (-1.42%)

Fundamental Rating

6

Overall IMO gets a fundamental rating of 6 out of 10. We evaluated IMO against 221 industry peers in the Oil, Gas & Consumable Fuels industry. While IMO has a great health rating, its profitability is only average at the moment. IMO is valued correctly, but it does not seem to be growing. IMO also has an excellent dividend rating. This makes IMO very considerable for dividend investing!


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

IMO had positive earnings in the past year.
IMO had a positive operating cash flow in the past year.
In multiple years IMO reported negative net income over the last 5 years.
IMO had a positive operating cash flow in 4 of the past 5 years.
IMO.CA Yearly Net Income VS EBIT VS OCF VS FCFIMO.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B 10B

1.2 Ratios

IMO has a Return On Assets of 11.59%. This is amongst the best in the industry. IMO outperforms 93.72% of its industry peers.
IMO has a better Return On Equity (20.86%) than 94.20% of its industry peers.
With an excellent Return On Invested Capital value of 13.37%, IMO belongs to the best of the industry, outperforming 94.20% of the companies in the same industry.
Industry RankSector Rank
ROA 11.59%
ROE 20.86%
ROIC 13.37%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
IMO.CA Yearly ROA, ROE, ROICIMO.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

1.3 Margins

IMO's Profit Margin of 9.51% is in line compared to the rest of the industry. IMO outperforms 59.90% of its industry peers.
IMO's Profit Margin has improved in the last couple of years.
IMO has a Operating Margin of 12.05%. This is comparable to the rest of the industry: IMO outperforms 54.11% of its industry peers.
IMO's Operating Margin has improved in the last couple of years.
IMO has a Gross Margin (22.51%) which is in line with its industry peers.
In the last couple of years the Gross Margin of IMO has grown nicely.
Industry RankSector Rank
OM 12.05%
PM (TTM) 9.51%
GM 22.51%
OM growth 3YN/A
OM growth 5Y6.92%
PM growth 3YN/A
PM growth 5Y7.82%
GM growth 3Y15%
GM growth 5Y1.53%
IMO.CA Yearly Profit, Operating, Gross MarginsIMO.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IMO is creating some value.
IMO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
IMO.CA Yearly Shares OutstandingIMO.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M
IMO.CA Yearly Total Debt VS Total AssetsIMO.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B 40B

2.2 Solvency

IMO has an Altman-Z score of 4.14. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IMO (4.14) is better than 85.99% of its industry peers.
IMO has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.15, IMO belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that IMO is not too dependend on debt financing.
IMO has a better Debt to Equity ratio (0.17) than 61.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 1.15
Altman-Z 4.14
ROIC/WACC1.76
WACC7.59%
IMO.CA Yearly LT Debt VS Equity VS FCFIMO.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B 25B

2.3 Liquidity

IMO has a Current Ratio of 1.44. 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 1.44 is fine compared to the rest of the industry. IMO outperforms 68.12% of its industry peers.
IMO has a Quick Ratio of 1.08. This is a normal value and indicates that IMO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.08, IMO is in the better half of the industry, outperforming 61.35% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 1.08
IMO.CA Yearly Current Assets VS Current LiabilitesIMO.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

3

3. Growth

3.1 Past

IMO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.23%.
IMO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.08% yearly.
EPS 1Y (TTM)6.23%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-4.05%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.83%

3.2 Future

IMO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.70% yearly.
Based on estimates for the next years, IMO will show a decrease in Revenue. The Revenue will decrease by -1.31% on average per year.
EPS Next Y-12.78%
EPS Next 2Y-2.55%
EPS Next 3Y11.18%
EPS Next 5Y12.7%
Revenue Next Year6.44%
Revenue Next 2Y5.87%
Revenue Next 3Y-1.42%
Revenue Next 5Y-1.31%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
IMO.CA Yearly Revenue VS EstimatesIMO.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B
IMO.CA Yearly EPS VS EstimatesIMO.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 5 10 15

5

4. Valuation

4.1 Price/Earnings Ratio

IMO is valuated reasonably with a Price/Earnings ratio of 10.87.
Compared to the rest of the industry, the Price/Earnings ratio of IMO indicates a somewhat cheap valuation: IMO is cheaper than 65.70% of the companies listed in the same industry.
IMO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.19.
Based on the Price/Forward Earnings ratio of 12.46, the valuation of IMO can be described as correct.
IMO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of IMO to the average of the S&P500 Index (23.58), we can say IMO is valued slightly cheaper.
Industry RankSector Rank
PE 10.87
Fwd PE 12.46
IMO.CA Price Earnings VS Forward Price EarningsIMO.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, IMO is valued a bit cheaper than 73.43% of the companies in the same industry.
IMO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IMO is cheaper than 65.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.94
EV/EBITDA 6.43
IMO.CA Per share dataIMO.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

The decent profitability rating of IMO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-2.55%
EPS Next 3Y11.18%

7

5. Dividend

5.1 Amount

IMO has a Yearly Dividend Yield of 2.89%.
IMO's Dividend Yield is a higher than the industry average which is at 6.30.
Compared to an average S&P500 Dividend Yield of 2.30, IMO pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.89%

5.2 History

On average, the dividend of IMO grows each year by 16.65%, which is quite nice.
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)16.65%
Div Incr Years30
Div Non Decr Years34
IMO.CA Yearly Dividends per shareIMO.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

IMO pays out 24.52% 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.
DP24.52%
EPS Next 2Y-2.55%
EPS Next 3Y11.18%
IMO.CA Yearly Income VS Free CF VS DividendIMO.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B
IMO.CA Dividend Payout.IMO.CA Dividend Payout, showing the Payout Ratio.IMO.CA Dividend Payout.PayoutRetained Earnings

IMPERIAL OIL LTD

TSX:IMO (2/14/2025, 7:00:00 PM)

98.25

-1.42 (-1.42%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)01-31 2025-01-31/bmo
Earnings (Next)04-24 2025-04-24/bmo
Inst Owners24.99%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap50.01B
Analysts63.33
Price Target103.6 (5.45%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.89%
Yearly Dividend1.35
Dividend Growth(5Y)16.65%
DP24.52%
Div Incr Years30
Div Non Decr Years34
Ex-Date03-05 2025-03-05 (0.72)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.34%
Min EPS beat(2)9.59%
Max EPS beat(2)13.08%
EPS beat(4)4
Avg EPS beat(4)11.99%
Min EPS beat(4)8.56%
Max EPS beat(4)16.73%
EPS beat(8)8
Avg EPS beat(8)9.1%
EPS beat(12)10
Avg EPS beat(12)10.32%
EPS beat(16)10
Avg EPS beat(16)3.03%
Revenue beat(2)0
Avg Revenue beat(2)-18.2%
Min Revenue beat(2)-20.8%
Max Revenue beat(2)-15.6%
Revenue beat(4)0
Avg Revenue beat(4)-19.97%
Min Revenue beat(4)-30.26%
Max Revenue beat(4)-13.23%
Revenue beat(8)0
Avg Revenue beat(8)-18.21%
Revenue beat(12)1
Avg Revenue beat(12)-16.65%
Revenue beat(16)1
Avg Revenue beat(16)-14.91%
PT rev (1m)0.01%
PT rev (3m)2.22%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)-9.36%
EPS NY rev (1m)0.81%
EPS NY rev (3m)2.92%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)7.27%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-1.66%
Valuation
Industry RankSector Rank
PE 10.87
Fwd PE 12.46
P/S 0.97
P/FCF 13.94
P/OCF 9.09
P/B 2.12
P/tB 2.13
EV/EBITDA 6.43
EPS(TTM)9.04
EY9.2%
EPS(NY)7.88
Fwd EY8.02%
FCF(TTM)7.05
FCFY7.18%
OCF(TTM)10.81
OCFY11%
SpS101.8
BVpS46.44
TBVpS46.11
PEG (NY)N/A
PEG (5Y)0.31
Profitability
Industry RankSector Rank
ROA 11.59%
ROE 20.86%
ROCE 17.34%
ROIC 13.37%
ROICexc 13.94%
ROICexgc 14.01%
OM 12.05%
PM (TTM) 9.51%
GM 22.51%
FCFM 6.93%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y6.92%
PM growth 3YN/A
PM growth 5Y7.82%
GM growth 3Y15%
GM growth 5Y1.53%
F-Score6
Asset Turnover1.22
Health
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 1.15
Debt/EBITDA 0.49
Cap/Depr 98.51%
Cap/Sales 3.69%
Interest Coverage 115.65
Cash Conversion 67.21%
Profit Quality 72.8%
Current Ratio 1.44
Quick Ratio 1.08
Altman-Z 4.14
F-Score6
WACC7.59%
ROIC/WACC1.76
Cap/Depr(3y)76.7%
Cap/Depr(5y)71.8%
Cap/Sales(3y)3.01%
Cap/Sales(5y)3.55%
Profit Quality(3y)112.69%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.23%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-4.05%
EPS Next Y-12.78%
EPS Next 2Y-2.55%
EPS Next 3Y11.18%
EPS Next 5Y12.7%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.83%
Revenue Next Year6.44%
Revenue Next 2Y5.87%
Revenue Next 3Y-1.42%
Revenue Next 5Y-1.31%
EBIT growth 1Y-7.7%
EBIT growth 3YN/A
EBIT growth 5Y15.17%
EBIT Next Year52.8%
EBIT Next 3Y13.14%
EBIT Next 5Y9.38%
FCF growth 1Y-54.33%
FCF growth 3YN/A
FCF growth 5Y-4.32%
OCF growth 1Y-40.94%
OCF growth 3Y67.26%
OCF growth 5Y-0.98%