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 213 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 has a correct valuation and a medium 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.
Of the past 5 years IMO 4 years were profitable.
Each year in the past 5 years IMO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of IMO (11.16%) is better than 84.51% of its industry peers.
IMO has a Return On Equity of 20.41%. This is amongst the best in the industry. IMO outperforms 80.75% of its industry peers.
The Return On Invested Capital of IMO (13.05%) is better than 84.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IMO is significantly below the industry average of 25.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 20.41% | ||
| ROIC | 13.05% |
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
Looking at the Profit Margin, with a value of 9.33%, IMO is in line with its industry, outperforming 53.05% of the companies in the same industry.
IMO's Profit Margin has improved in the last couple of years.
IMO has a Operating Margin (11.89%) which is in line with its industry peers.
In the last couple of years the Operating Margin of IMO has grown nicely.
IMO's Gross Margin of 22.54% is on the low side compared to the rest of the industry. IMO is outperformed by 65.73% of its industry peers.
In the last couple of years the Gross Margin of IMO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.89% | ||
| PM (TTM) | 9.33% | ||
| GM | 22.54% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
IMO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, IMO has less shares outstanding
Compared to 1 year ago, IMO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.99 indicates that IMO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.99, IMO belongs to the best of the industry, outperforming 87.32% of the companies in the same industry.
IMO has a debt to FCF ratio of 0.97. This is a very positive value and a sign of high solvency as it would only need 0.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.97, IMO belongs to the top of the industry, outperforming 89.20% of the companies in the same industry.
IMO has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
IMO has a Debt to Equity ratio of 0.17. This is in the better half of the industry: IMO outperforms 72.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 3.99 |
ROIC/WACC1.46
WACC8.91%
2.3 Liquidity
A Current Ratio of 1.33 indicates that IMO should not have too much problems paying its short term obligations.
IMO has a Current ratio of 1.33. This is in the better half of the industry: IMO outperforms 61.50% of its industry peers.
IMO has a Quick Ratio of 1.10. This is a normal value and indicates that IMO is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.10, IMO perfoms like the industry average, outperforming 59.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
IMO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.20%.
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.
IMO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.30%.
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)7.2%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%8.52%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-1.84%
3.2 Future
IMO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.84% yearly.
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 Year7.34%
Revenue Next 2Y4.6%
Revenue Next 3Y-0.52%
Revenue Next 5Y-2.1%
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.
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
A Price/Earnings ratio of 10.72 indicates a reasonable valuation of IMO.
Compared to the rest of the industry, the Price/Earnings ratio of IMO indicates a somewhat cheap valuation: IMO is cheaper than 67.14% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.21, IMO is valued rather cheaply.
IMO is valuated correctly with a Price/Forward Earnings ratio of 12.20.
IMO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.44. IMO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 12.2 |
4.2 Price Multiples
61.50% of the companies in the same industry are more expensive than IMO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IMO indicates a somewhat cheap valuation: IMO is cheaper than 67.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.23 | ||
| EV/EBITDA | 6.45 |
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-5.31%
EPS Next 3Y4.75%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
IMO's Dividend Yield is comparable with the industry average which is at 7.30.
IMO's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
On average, the dividend of IMO grows each year by 23.44%, which is quite nice.
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
25.85% 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.
DP25.85%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
71.17
+1.64 (+2.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners26.05%
Inst Owner Change-0.49%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap36.23B
Analysts66.96
Price Target73.02 (2.6%)
Short Float %10.79%
Short Ratio33.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend1.7
Dividend Growth(5Y)23.44%
DP25.85%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.02%
Min EPS beat(2)10.95%
Max EPS beat(2)13.08%
EPS beat(4)4
Avg EPS beat(4)10.55%
Min EPS beat(4)8.56%
Max EPS beat(4)13.08%
EPS beat(8)8
Avg EPS beat(8)9.15%
EPS beat(12)11
Avg EPS beat(12)11.46%
EPS beat(16)11
Avg EPS beat(16)7.62%
Revenue beat(2)0
Avg Revenue beat(2)-24.4%
Min Revenue beat(2)-27.99%
Max Revenue beat(2)-20.8%
Revenue beat(4)0
Avg Revenue beat(4)-23.66%
Min Revenue beat(4)-30.26%
Max Revenue beat(4)-15.6%
Revenue beat(8)0
Avg Revenue beat(8)-20.35%
Revenue beat(12)0
Avg Revenue beat(12)-19.62%
Revenue beat(16)1
Avg Revenue beat(16)-15.91%
PT rev (1m)0.81%
PT rev (3m)1.91%
EPS NQ rev (1m)1.7%
EPS NQ rev (3m)16.88%
EPS NY rev (1m)-7.68%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)9.1%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 12.2 | ||
| P/S | 0.98 | ||
| P/FCF | 12.23 | ||
| P/OCF | 8.41 | ||
| P/B | 2.14 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 6.45 |
EPS(TTM)6.64
EY9.33%
EPS(NY)5.83
Fwd EY8.2%
FCF(TTM)5.82
FCFY8.17%
OCF(TTM)8.46
OCFY11.88%
SpS72.63
BVpS33.19
TBVpS32.96
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 20.41% | ||
| ROCE | 17% | ||
| ROIC | 13.05% | ||
| ROICexc | 13.41% | ||
| ROICexgc | 13.48% | ||
| OM | 11.89% | ||
| PM (TTM) | 9.33% | ||
| GM | 22.54% | ||
| FCFM | 8.01% |
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-Score7
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.97 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 94.15% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | 145.41 | ||
| Cash Conversion | 73.93% | ||
| Profit Quality | 85.89% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.99 |
F-Score7
WACC8.91%
ROIC/WACC1.46
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)7.2%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%8.52%
EPS Next Y-13.05%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
EPS Next 5Y5.84%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-1.84%
Revenue Next Year7.34%
Revenue Next 2Y4.6%
Revenue Next 3Y-0.52%
Revenue Next 5Y-2.1%
EBIT growth 1Y-1.04%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year34.84%
EBIT Next 3Y8.37%
EBIT Next 5Y6.98%
FCF growth 1Y111.08%
FCF growth 3Y-1.98%
FCF growth 5Y8.05%
OCF growth 1Y60.18%
OCF growth 3Y2.98%
OCF growth 5Y6.19%