IMPERIAL OIL LTD (IMO) Stock Fundamental Analysis
USA - NYSEARCA:IMO - CA4530384086 - Common Stock
93.44 USD
+2.55 (+2.81%)
93.44 USD
0 (0%)
IMO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 210 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
IMO had positive earnings in the past year.
In the past year IMO had a positive cash flow from operations.
IMO had positive earnings in 4 of the past 5 years.
In the past 5 years IMO always reported a positive cash flow from operatings.
1.2 Ratios
IMO has a better Return On Assets (10.64%) than 88.10% of its industry peers.
IMO's Return On Equity of 18.80% is amongst the best of the industry. IMO outperforms 82.38% of its industry peers.
The Return On Invested Capital of IMO (12.19%) is better than 87.62% 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 21.78%.
| 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's Profit Margin of 9.51% is in line compared to the rest of the industry. IMO outperforms 54.29% of its industry peers.
In the last couple of years the Profit Margin of IMO has grown nicely.
Looking at the Operating Margin, with a value of 12.03%, IMO is in line with its industry, outperforming 42.86% of the companies in the same industry.
IMO's Operating Margin has improved in the last couple of years.
IMO has a Gross Margin of 22.75%. This is in the lower half of the industry: IMO underperforms 64.29% of its industry peers.
IMO's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for IMO has been reduced compared to 1 year ago.
The number of shares outstanding for IMO has been reduced compared to 5 years ago.
Compared to 1 year ago, IMO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.45 indicates that IMO is not in any danger for bankruptcy at the moment.
IMO has a better Altman-Z score (4.45) than 88.57% 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's Debt to FCF ratio of 0.89 is amongst the best of the industry. IMO outperforms 90.00% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that IMO is not too dependend on debt financing.
IMO has a better Debt to Equity ratio (0.16) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | 4.45 |
ROIC/WACC1.67
WACC7.3%
2.3 Liquidity
A Current Ratio of 1.58 indicates that IMO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.58, IMO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that IMO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.34, IMO is in the better half of the industry, outperforming 67.62% 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 -2.41%.
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)-2.41%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-6.87%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-9.13%
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 4.92% on average per year.
Based on estimates for the next years, IMO will show a decrease in Revenue. The Revenue will decrease by -0.87% on average per year.
EPS Next Y-9%
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
EPS Next 5Y4.92%
Revenue Next Year-2.82%
Revenue Next 2Y0.86%
Revenue Next 3Y1.2%
Revenue Next 5Y-0.87%
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
The Price/Earnings ratio is 14.76, which indicates a correct valuation of IMO.
IMO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of IMO to the average of the S&P500 Index (25.83), we can say IMO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.14, the valuation of IMO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IMO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of IMO to the average of the S&P500 Index (32.68), we can say IMO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 17.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IMO is on the same level as its industry peers.
63.81% 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 | 14.72 | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
IMO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.24%.
IMO's Dividend Yield is comparable with the industry average which is at 6.76.
IMO's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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
27.94% of the earnings are spent on dividend by IMO. This is a low number and sustainable payout ratio.
The dividend of IMO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.94%
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
93.44
+2.55 (+2.81%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners27.96%
Inst Owner Change-0.03%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap46.90B
Revenue(TTM)51.36B
Net Income(TTM)4.70B
Analysts51.3
Price Target79.86 (-14.53%)
Short Float %12.26%
Short Ratio43.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend1.68
Dividend Growth(5Y)23.44%
DP27.94%
Div Incr Years20
Div Non Decr Years20
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)-17.66%
Revenue beat(16)1
Avg Revenue beat(16)-15.66%
PT rev (1m)1.73%
PT rev (3m)4.58%
EPS NQ rev (1m)4.99%
EPS NQ rev (3m)12.34%
EPS NY rev (1m)0%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)20.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 17.14 | ||
| P/S | 1.34 | ||
| P/FCF | 14.72 | ||
| P/OCF | 10.54 | ||
| P/B | 2.64 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 8.25 |
EPS(TTM)6.33
EY6.77%
EPS(NY)5.45
Fwd EY5.84%
FCF(TTM)6.35
FCFY6.79%
OCF(TTM)8.86
OCFY9.48%
SpS69.89
BVpS35.34
TBVpS35.11
PEG (NY)N/A
PEG (5Y)0.42
Graham Number70.95
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 | 4.45 |
F-Score6
WACC7.3%
ROIC/WACC1.67
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)-2.41%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-6.87%
EPS Next Y-9%
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
EPS Next 5Y4.92%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-9.13%
Revenue Next Year-2.82%
Revenue Next 2Y0.86%
Revenue Next 3Y1.2%
Revenue Next 5Y-0.87%
EBIT growth 1Y-11.87%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year31.2%
EBIT Next 3Y11.89%
EBIT Next 5Y7.8%
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 FAQ
Can you provide the ChartMill fundamental rating for IMPERIAL OIL LTD?
ChartMill assigns a fundamental rating of 6 / 10 to IMO.
What is the valuation status for IMO stock?
ChartMill assigns a valuation rating of 4 / 10 to IMPERIAL OIL LTD (IMO). This can be considered as Fairly Valued.
Can you provide the profitability details for IMPERIAL OIL LTD?
IMPERIAL OIL LTD (IMO) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for IMO stock?
The Earnings per Share (EPS) of IMPERIAL OIL LTD (IMO) is expected to decline by -9% in the next year.
How sustainable is the dividend of IMPERIAL OIL LTD (IMO) stock?
The dividend rating of IMPERIAL OIL LTD (IMO) is 6 / 10 and the dividend payout ratio is 27.94%.