IMPERIAL OIL LTD (IMO) Stock Fundamental Analysis
NYSEARCA:IMO - NYSE Arca - CA4530384086 - Common Stock - Currency: USD
IMO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. IMO has an excellent financial health rating, but there are some minor concerns on its profitability. IMO has a correct valuation and a medium growth rate.
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.
Of the past 5 years IMO 4 years were profitable.
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 84.83% of its industry peers.
The Return On Equity of IMO (20.00%) is better than 85.31% of its industry peers.
With an excellent Return On Invested Capital value of 12.90%, IMO belongs to the best of the industry, outperforming 88.63% 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 below the industry average of 23.79%.
| 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 in line compared to the rest of the industry. IMO outperforms 54.50% 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 42.18% of the companies in the same industry.
In the last couple of years the Operating Margin of IMO has grown nicely.
Looking at the Gross Margin, with a value of 22.73%, IMO is doing worse than 64.45% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IMO is creating value.
IMO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, IMO has less shares outstanding
IMO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.26 indicates that IMO is not in any danger for bankruptcy at the moment.
IMO has a better Altman-Z score (4.26) than 88.63% of its industry peers.
The Debt to FCF ratio of IMO is 0.86, which is an excellent value as it means it would take IMO, only 0.86 years of fcf income to pay off all of its debts.
IMO has a better Debt to FCF ratio (0.86) than 90.05% 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 72.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 4.26 |
ROIC/WACC1.65
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.48 indicates that IMO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.48, IMO is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
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 64.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
IMO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.36%, which is quite good.
The Earnings Per Share has been growing by 35.08% on average over the past years. This is a very strong growth
IMO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.34%.
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
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 Year4.54%
Revenue Next 2Y3.77%
Revenue Next 3Y1.4%
Revenue Next 5Y-1.39%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 12.12, which indicates a correct valuation of IMO.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than 63.98% of the companies in the same industry.
When comparing the Price/Earnings ratio of IMO to the average of the S&P500 Index (27.30), we can say IMO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.95, the valuation of IMO can be described as correct.
IMO's Price/Forward Earnings ratio is in line with the industry average.
IMO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 13.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IMO is valued a bit cheaper than the industry average as 61.14% of the companies are valued more expensively.
IMO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IMO is cheaper than 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.34 | ||
| EV/EBITDA | 7.28 |
4.3 Compensation for Growth
The decent profitability rating of IMO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.60%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.48, IMO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, IMO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)23.44%
Div Incr Years20
Div Non Decr Years20
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%
82.53
+1.67 (+2.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners26.57%
Inst Owner Change0%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap42.01B
Analysts66.09
Price Target73.91 (-10.44%)
Short Float %12.45%
Short Ratio46.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
Yearly Dividend1.73
Dividend Growth(5Y)23.44%
DP25.95%
Div Incr Years20
Div Non Decr Years20
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)-19.76%
Revenue beat(16)1
Avg Revenue beat(16)-15.53%
PT rev (1m)0.55%
PT rev (3m)2.69%
EPS NQ rev (1m)-3.37%
EPS NQ rev (3m)-20.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.68%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-10.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 13.95 | ||
| P/S | 1.12 | ||
| P/FCF | 12.34 | ||
| P/OCF | 8.95 | ||
| P/B | 2.36 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 7.28 |
EPS(TTM)6.81
EY8.25%
EPS(NY)5.92
Fwd EY7.17%
FCF(TTM)6.69
FCFY8.1%
OCF(TTM)9.22
OCFY11.17%
SpS73.95
BVpS35
TBVpS34.76
PEG (NY)N/A
PEG (5Y)0.35
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 | 4.26 |
F-Score6
WACC7.81%
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)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 5Y5.42%
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-1.39%
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%