IMPERIAL OIL LTD (IMO) Stock Fundamental Analysis
NYSEARCA:IMO - NYSE Arca - CA4530384086 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to IMO. IMO was compared to 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 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
Looking at the Return On Assets, with a value of 11.13%, IMO belongs to the top of the industry, outperforming 84.83% of the companies in the same industry.
IMO has a better Return On Equity (20.00%) than 85.31% of its industry peers.
IMO has a better Return On Invested Capital (12.90%) than 88.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IMO is significantly below the industry average of 23.70%.
| 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
Looking at the Profit Margin, with a value of 9.47%, IMO is in line with its industry, outperforming 54.50% of the companies in the same industry.
In the last couple of years the Profit Margin of IMO has grown nicely.
IMO has a Operating Margin (12.01%) which is comparable to the rest of the industry.
IMO's Operating Margin has improved in the last couple of years.
The Gross Margin of IMO (22.73%) is worse than 64.45% of its industry peers.
In the last couple of years the Gross Margin of IMO has grown nicely.
| 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.
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 4.22 indicates that IMO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.22, IMO belongs to the best of the industry, outperforming 88.63% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.86, IMO belongs to the top of the industry, outperforming 90.52% of the companies in the same industry.
IMO has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
IMO has a Debt to Equity ratio of 0.16. This is in the better half 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 | 4.22 |
ROIC/WACC1.79
WACC7.21%
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.
With a decent Current ratio value of 1.48, IMO is doing good in the industry, outperforming 65.40% of the companies in the same industry.
IMO has a Quick Ratio of 1.22. This is a normal value and indicates that IMO is financially healthy and should not expect problems in meeting its short term obligations.
IMO has a Quick ratio of 1.22. This is in the better half of the industry: IMO outperforms 63.98% 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.
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.
The Revenue has been growing slightly by 1.34% 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)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
IMO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.42% yearly.
The Revenue is expected to decrease by -1.39% on average over the next years.
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
With a Price/Earnings ratio of 11.85, the valuation of IMO can be described as very reasonable.
63.98% of the companies in the same industry are more expensive than IMO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of IMO to the average of the S&P500 Index (27.45), we can say IMO is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.65, IMO is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as IMO.
IMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 13.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IMO indicates a somewhat cheap valuation: IMO is cheaper than 62.09% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, IMO is valued a bit cheaper than 68.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.08 | ||
| EV/EBITDA | 7.13 |
4.3 Compensation for Growth
The decent profitability rating of IMO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.59%, IMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.66, IMO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, IMO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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 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.
The dividend of IMO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.95%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
81.43
+0.45 (+0.56%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners26.57%
Inst Owner Change2.3%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap41.45B
Analysts66.96
Price Target73.91 (-9.23%)
Short Float %12.45%
Short Ratio46.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend1.74
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)1.22%
PT rev (3m)1.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 13.65 | ||
| P/S | 1.09 | ||
| P/FCF | 12.08 | ||
| P/OCF | 8.76 | ||
| P/B | 2.31 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 7.13 |
EPS(TTM)6.87
EY8.44%
EPS(NY)5.97
Fwd EY7.33%
FCF(TTM)6.74
FCFY8.28%
OCF(TTM)9.3
OCFY11.42%
SpS74.56
BVpS35.29
TBVpS35.05
PEG (NY)N/A
PEG (5Y)0.34
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 | 4.22 |
F-Score6
WACC7.21%
ROIC/WACC1.79
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%