IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
TSX:IMO - Toronto Stock Exchange - CA4530384086 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to IMO. IMO was compared to 208 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IMO was profitable.
IMO had a positive operating cash flow in the past year.
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 (11.13%) than 93.75% of its industry peers.
IMO has a better Return On Equity (20.00%) than 93.75% of its industry peers.
IMO has a Return On Invested Capital of 12.90%. This is amongst the best in the industry. IMO outperforms 94.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IMO is significantly above the industry average of 7.37%.
| 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 has a Profit Margin of 9.47%. This is in the better half of the industry: IMO outperforms 61.54% of its industry peers.
IMO's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 12.01%, IMO perfoms like the industry average, outperforming 53.37% of the companies in the same industry.
IMO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 22.73%, IMO is in line with its industry, outperforming 43.75% of the companies in the same 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
IMO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, IMO has less shares outstanding
Compared to 5 years ago, IMO has less shares outstanding
The debt/assets ratio for IMO has been reduced compared to a year ago.
2.2 Solvency
IMO has an Altman-Z score of 4.03. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
IMO has a Altman-Z score of 4.03. This is amongst the best in the industry. IMO outperforms 86.06% 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.
The Debt to FCF ratio of IMO (0.86) is better than 93.75% 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.
Looking at the Debt to Equity ratio, with a value of 0.16, IMO is in the better half of the industry, outperforming 64.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 4.03 |
ROIC/WACC1.49
WACC8.68%
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.
The Current ratio of IMO (1.48) is better than 72.12% 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 has a better Quick ratio (1.22) than 69.71% of its industry peers.
| 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.
Measured over the past years, IMO shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.08% on average per year.
Looking at the last year, IMO shows a small growth in Revenue. The Revenue has grown by 1.34% in the last 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)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
The Earnings Per Share is expected to grow by 5.84% on average over the next years.
Based on estimates for the next years, IMO will show a decrease in Revenue. The Revenue will decrease by -2.10% on average per year.
EPS Next Y-13.05%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
EPS Next 5Y5.84%
Revenue Next Year4.54%
Revenue Next 2Y3.77%
Revenue Next 3Y1.4%
Revenue Next 5Y-2.1%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 10.56 indicates a reasonable valuation of IMO.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than the industry average as 67.79% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.82. IMO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.15 indicates a correct valuation of IMO.
IMO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. IMO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
74.52% of the companies in the same industry are more expensive than IMO, based on the Enterprise Value to EBITDA ratio.
72.60% 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 | 10.75 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
IMO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.89%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.53, IMO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, IMO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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
25.95% 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.
DP25.95%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
TSX:IMO (5/23/2025, 7:00:00 PM)
98.5
-0.21 (-0.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners26.05%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap50.14B
Analysts66.96
Price Target100.77 (2.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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)-2.6%
PT rev (3m)-3.1%
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)-2.61%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 12.15 | ||
| P/S | 0.97 | ||
| P/FCF | 10.75 | ||
| P/OCF | 7.8 | ||
| P/B | 2.05 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 6.38 |
EPS(TTM)9.33
EY9.47%
EPS(NY)8.11
Fwd EY8.23%
FCF(TTM)9.16
FCFY9.3%
OCF(TTM)12.64
OCFY12.83%
SpS101.32
BVpS47.95
TBVpS47.63
PEG (NY)N/A
PEG (5Y)0.3
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 | 4.03 |
F-Score6
WACC8.68%
ROIC/WACC1.49
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 5Y5.84%
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-2.1%
EBIT growth 1Y1.11%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year25.88%
EBIT Next 3Y11.55%
EBIT Next 5Y6.98%
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%