101.58 USD
+0.34 (+0.34%)
101.58 USD
0 (0%)
IMO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. IMO gets an excellent profitability rating and is at the same time showing great financial health properties. IMO is valued correctly, but it does not seem to be growing.
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
- With an excellent Return On Assets value of 9.31%, IMO belongs to the best of the industry, outperforming 88.41% of the companies in the same industry.
- IMO's Return On Equity of 16.89% is amongst the best of the industry. IMO outperforms 82.61% of its industry peers.
- IMO has a better Return On Invested Capital (10.67%) than 85.99% of its industry peers.
- IMO had an Average Return On Invested Capital over the past 3 years of 15.78%. This is significantly below the industry average of 21.94%.
- The last Return On Invested Capital (10.67%) for IMO is well below the 3 year average (15.78%), which needs to be investigated, but indicates that IMO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 16.89% | ||
| ROIC | 10.67% |
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
- The Profit Margin of IMO (8.30%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of IMO has grown nicely.
- With a Operating Margin value of 10.43%, IMO perfoms like the industry average, outperforming 42.51% of the companies in the same industry.
- IMO's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 22.56%, IMO is not doing good in the industry: 64.73% of the companies in the same industry are doing better.
- IMO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 8.3% | ||
| GM | 22.56% |
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.
- Compared to 1 year ago, IMO has less shares outstanding
- 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 4.48 indicates that IMO is not in any danger for bankruptcy at the moment.
- IMO has a Altman-Z score of 4.48. This is amongst the best in the industry. IMO outperforms 87.92% of its industry peers.
- The Debt to FCF ratio of IMO is 0.84, which is an excellent value as it means it would take IMO, only 0.84 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of IMO (0.84) is better than 88.89% of its industry peers.
- 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 better Debt to Equity ratio (0.17) than 75.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 4.48 |
ROIC/WACC1.43
WACC7.48%
2.3 Liquidity
- IMO has a Current Ratio of 1.47. 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 Current ratio, with a value of 1.47, IMO is in the better half of the industry, outperforming 65.70% of the companies in the same industry.
- IMO has a Quick Ratio of 1.17. This is a normal value and indicates that IMO is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of IMO (1.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.17 |
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%.
- IMO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.08% yearly.
- IMO shows a decrease in Revenue. In the last year, the revenue decreased by -6.96%.
- Measured over the past years, IMO shows a quite strong growth in Revenue. The Revenue has been growing by 8.60% on average per year.
EPS 1Y (TTM)-2.41%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-6.87%
Revenue 1Y (TTM)-6.96%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-9.13%
3.2 Future
- The Earnings Per Share is expected to grow by 4.33% on average over the next years.
- IMO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.24% yearly.
EPS Next Y-8.02%
EPS Next 2Y-9.88%
EPS Next 3Y-2.81%
EPS Next 5Y4.33%
Revenue Next Year-5.95%
Revenue Next 2Y0.54%
Revenue Next 3Y2.01%
Revenue Next 5Y-2.24%
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.
- 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
- With a Price/Earnings ratio of 15.60, IMO is valued correctly.
- IMO's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of IMO to the average of the S&P500 Index (27.25), we can say IMO is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 18.97, the valuation of IMO can be described as rather expensive.
- IMO's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. IMO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 18.97 |
4.2 Price Multiples
- IMO's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, IMO is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.31 | ||
| EV/EBITDA | 9.44 |
4.3 Compensation for Growth
- The decent profitability rating of IMO may justify a higher PE ratio.
- IMO's earnings are expected to decrease with -2.81% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y-9.88%
EPS Next 3Y-2.81%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.10%, IMO has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.73, IMO has a dividend in line with its industry peers.
- IMO's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
- The dividend of IMO is nicely growing with an annual growth rate of 23.44%!
- IMO has been paying a dividend for at least 10 years, so it has 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 Years20
Div Non Decr Years20
5.3 Sustainability
- IMO pays out 33.92% of its income as dividend. This is a sustainable payout ratio.
- IMO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.92%
EPS Next 2Y-9.88%
EPS Next 3Y-2.81%
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.
Can you provide the valuation status for IMPERIAL OIL LTD?
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 7 / 10.
What are the PE and PB ratios of IMPERIAL OIL LTD (IMO) stock?
The Price/Earnings (PE) ratio for IMPERIAL OIL LTD (IMO) is 15.6 and the Price/Book (PB) ratio is 2.89.
What is the earnings growth outlook for IMPERIAL OIL LTD?
The Earnings per Share (EPS) of IMPERIAL OIL LTD (IMO) is expected to decline by -8.02% in the next year.