IMPERIAL OIL LTD (IMO) Stock Fundamental Analysis
NYSEARCA:IMO - CA4530384086 - Common Stock
86.79 USD
-0.49 (-0.56%)
Taking everything into account, IMO scores 6 out of 10 in our fundamental rating. IMO was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. IMO is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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
In the past year IMO was profitable.
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
With an excellent Return On Assets value of 10.64%, IMO belongs to the best of the industry, outperforming 87.14% of the companies in the same industry.
The Return On Equity of IMO (18.80%) is better than 80.95% of its industry peers.
With an excellent Return On Invested Capital value of 12.19%, IMO belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
IMO had an Average Return On Invested Capital over the past 3 years of 15.78%. This is significantly below the industry average of 21.91%.
| 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
With a Profit Margin value of 9.51%, IMO perfoms like the industry average, outperforming 54.29% of the companies in the same industry.
In the last couple of years the Profit Margin of IMO has grown nicely.
With a Operating Margin value of 12.03%, IMO perfoms like the industry average, outperforming 43.33% 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 64.76% of its industry peers.
In the last couple of years the Gross Margin of IMO has grown nicely.
| 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
IMO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, IMO has less shares outstanding
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
IMO has an Altman-Z score of 4.35. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
IMO has a better Altman-Z score (4.35) 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 has a Debt to FCF ratio of 0.89. This is amongst the best in the industry. IMO outperforms 90.95% of its industry peers.
IMO has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of IMO (0.16) is better than 69.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | 4.35 |
ROIC/WACC1.57
WACC7.75%
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 69.52% 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.
With a decent Quick ratio value of 1.34, IMO is doing good in the industry, outperforming 68.57% 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 -5.12%.
IMO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.08% yearly.
The Revenue has decreased by -5.80% 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)-5.12%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-11.85%
Revenue 1Y (TTM)-5.8%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-16.07%
3.2 Future
IMO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.44% yearly.
IMO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.33% yearly.
EPS Next Y-10.17%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
EPS Next 5Y7.44%
Revenue Next Year-0.21%
Revenue Next 2Y4.26%
Revenue Next 3Y-0.82%
Revenue Next 5Y-1.33%
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
The Price/Earnings ratio is 13.19, which indicates a correct valuation of IMO.
The rest of the industry has a similar Price/Earnings ratio as IMO.
When comparing the Price/Earnings ratio of IMO to the average of the S&P500 Index (27.02), we can say IMO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 16.20, the valuation of IMO can be described as correct.
IMO's Price/Forward Earnings ratio is in line with the industry average.
IMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 16.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IMO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IMO indicates a somewhat cheap valuation: IMO is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.51 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
The decent profitability rating of IMO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.38%.
IMO's Dividend Yield is comparable with the industry average which is at 6.02.
Compared to an average S&P500 Dividend Yield of 2.45, IMO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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 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 27.94% of its income as dividend. This is a 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-9.57%
EPS Next 3Y2.42%
NYSEARCA:IMO (9/8/2025, 12:20:53 PM)
86.79
-0.49 (-0.56%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners26.57%
Inst Owner Change3.69%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap43.97B
Analysts55
Price Target77.99 (-10.14%)
Short Float %12.13%
Short Ratio49.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend1.72
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)-0.42%
PT rev (3m)6.11%
EPS NQ rev (1m)2.8%
EPS NQ rev (3m)-7.5%
EPS NY rev (1m)3.31%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)18.88%
Revenue NQ rev (3m)6.13%
Revenue NY rev (1m)-1.81%
Revenue NY rev (3m)-4.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 16.2 | ||
| P/S | 1.23 | ||
| P/FCF | 13.51 | ||
| P/OCF | 9.68 | ||
| P/B | 2.43 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 7.84 |
EPS(TTM)6.58
EY7.58%
EPS(NY)5.36
Fwd EY6.17%
FCF(TTM)6.42
FCFY7.4%
OCF(TTM)8.97
OCFY10.33%
SpS70.73
BVpS35.77
TBVpS35.53
PEG (NY)N/A
PEG (5Y)0.38
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
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 Turnover1.12
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 | 4.35 |
F-Score6
WACC7.75%
ROIC/WACC1.57
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)-5.12%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-11.85%
EPS Next Y-10.17%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
EPS Next 5Y7.44%
Revenue 1Y (TTM)-5.8%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-16.07%
Revenue Next Year-0.21%
Revenue Next 2Y4.26%
Revenue Next 3Y-0.82%
Revenue Next 5Y-1.33%
EBIT growth 1Y-11.87%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year25.88%
EBIT Next 3Y11.55%
EBIT Next 5Y7.31%
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%