103.47 USD
+0.28 (+0.27%)
103.47 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to IMO. IMO was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. IMO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. IMO has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
- Of the past 5 years IMO 4 years were profitable.
- In the past 5 years IMO always reported a positive cash flow from operatings.
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 has a Return On Equity of 16.89%. This is amongst the best in 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.
- Measured over the past 3 years, the Average Return On Invested Capital for IMO is significantly below the industry average of 21.94%.
- The 3 year average ROIC (15.78%) for IMO is well above the current ROIC(10.67%). The reason for the recent decline needs to be investigated.
| 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
- IMO has a Profit Margin of 8.30%. This is comparable to the rest of the industry: IMO outperforms 53.62% of its industry peers.
- IMO's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 10.43%, IMO is in line with its industry, outperforming 42.51% of the companies in the same industry.
- IMO's Operating Margin has improved in the last couple of years.
- IMO has a worse Gross Margin (22.56%) than 64.73% of its industry peers.
- In the last couple of years the Gross Margin of IMO has grown nicely.
| 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.
- The number of shares outstanding for IMO has been reduced compared to 1 year ago.
- IMO has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for IMO has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.49 indicates that IMO is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.49, IMO belongs to the top of the industry, outperforming 87.44% of the companies in the same industry.
- IMO has a debt to FCF ratio of 0.84. This is a very positive value and a sign of high solvency as it would only need 0.84 years to pay back of all of its debts.
- IMO has a Debt to FCF ratio of 0.84. This is amongst the best in the industry. IMO outperforms 88.89% of its industry peers.
- A Debt/Equity ratio of 0.17 indicates that IMO is not too dependend on debt financing.
- The Debt to Equity ratio of IMO (0.17) is better than 75.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 4.49 |
ROIC/WACC1.42
WACC7.49%
2.3 Liquidity
- A Current Ratio of 1.47 indicates that IMO should not have too much problems paying 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.
- IMO has a Quick ratio (1.17) which 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
- The earnings per share for IMO have decreased by -2.41% in the last year.
- 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%.
- The Revenue has been growing by 8.60% on average over the past years. This is quite good.
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
- Based on estimates for the next years, IMO will show a small growth in Earnings Per Share. The EPS will grow by 4.33% on average per year.
- 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
- 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 15.72, which indicates a correct valuation of IMO.
- The rest of the industry has a similar Price/Earnings ratio as IMO.
- The average S&P500 Price/Earnings ratio is at 28.60. IMO is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 19.12 indicates a rather expensive valuation of IMO.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IMO is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, IMO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 19.12 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as IMO.
- 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 | 14.42 | ||
| EV/EBITDA | 9.51 |
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)0.45
EPS Next 2Y-9.88%
EPS Next 3Y-2.81%
5. Dividend
5.1 Amount
- IMO has a Yearly Dividend Yield of 2.10%. Purely for dividend investing, there may be better candidates out there.
- 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
- 33.92% 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.
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 15.72 and the Price/Book (PB) ratio is 2.91.
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.