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IMPERIAL OIL LTD (IMO) Stock Fundamental Analysis

NYSEARCA:IMO - NYSE Arca - CA4530384086 - Common Stock - Currency: USD

71.69  +0.48 (+0.67%)

After market: 71.29 -0.4 (-0.56%)

Fundamental Rating

6

IMO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 213 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 decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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6

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.
Each year in the past 5 years IMO had a positive operating cash flow.
IMO Yearly Net Income VS EBIT VS OCF VS FCFIMO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B 10B

1.2 Ratios

With an excellent Return On Assets value of 11.13%, IMO belongs to the best of the industry, outperforming 84.51% of the companies in the same industry.
IMO has a Return On Equity of 20.00%. This is amongst the best in the industry. IMO outperforms 84.04% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.90%, IMO belongs to the top of the industry, outperforming 86.39% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IMO is significantly below the industry average of 25.87%.
Industry RankSector 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
IMO Yearly ROA, ROE, ROICIMO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 9.47%, IMO is in line with its industry, outperforming 55.40% 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 of 12.01%. This is comparable to the rest of the industry: IMO outperforms 41.78% of its industry peers.
IMO's Operating Margin has improved in the last couple of years.
The Gross Margin of IMO (22.73%) is worse than 64.79% of its industry peers.
IMO's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
IMO Yearly Profit, Operating, Gross MarginsIMO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

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8

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
IMO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IMO has an improved debt to assets ratio.
IMO Yearly Shares OutstandingIMO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
IMO Yearly Total Debt VS Total AssetsIMO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.2 Solvency

IMO has an Altman-Z score of 4.04. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IMO (4.04) is better than 88.26% of its industry peers.
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.
IMO has a Debt to FCF ratio of 0.86. This is amongst the best in the industry. IMO outperforms 91.08% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that IMO is not too dependend on debt financing.
IMO has a Debt to Equity ratio of 0.16. This is in the better half of the industry: IMO outperforms 70.89% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 0.86
Altman-Z 4.04
ROIC/WACC1.48
WACC8.69%
IMO Yearly LT Debt VS Equity VS FCFIMO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B 25B

2.3 Liquidity

A Current Ratio of 1.48 indicates that IMO should not have too much problems paying its short term obligations.
IMO has a better Current ratio (1.48) than 65.26% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.22, IMO is in the better half of the industry, outperforming 62.91% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.48
Quick Ratio 1.22
IMO Yearly Current Assets VS Current LiabilitesIMO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 7.20% over the past year.
The Earnings Per Share has been growing by 35.08% on average over the past years. This is a very strong growth
IMO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.34%.
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)7.2%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%8.52%
Revenue 1Y (TTM)1.34%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-1.84%

3.2 Future

IMO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.84% yearly.
Based on estimates for the next years, IMO will show a decrease in Revenue. The Revenue will decrease by -2.10% on average per year.
EPS Next Y-13.05%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
EPS Next 5Y5.84%
Revenue Next Year4.54%
Revenue Next 2Y3.77%
Revenue Next 3Y1.4%
Revenue Next 5Y-2.1%

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.
IMO Yearly Revenue VS EstimatesIMO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B
IMO Yearly EPS VS EstimatesIMO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 2 4 6 8 10

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.76 indicates a reasonable valuation of IMO.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than the industry average as 68.08% of the companies are valued more expensively.
IMO is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
IMO is valuated correctly with a Price/Forward Earnings ratio of 12.26.
IMO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. IMO is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 10.76
Fwd PE 12.26
IMO Price Earnings VS Forward Price EarningsIMO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

IMO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IMO is cheaper than 61.97% of the companies in the same industry.
72.77% of the companies in the same industry are more expensive than IMO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 10.85
EV/EBITDA 6.39
IMO Per share dataIMO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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)0.31
EPS Next 2Y-5.31%
EPS Next 3Y4.75%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.85%, IMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.77, IMO has a dividend in line with its industry peers.
IMO's Dividend Yield is a higher than the S&P500 average which is at 2.36.
Industry RankSector Rank
Dividend Yield 2.85%

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
IMO Yearly Dividends per shareIMO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

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%
IMO Yearly Income VS Free CF VS DividendIMO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B
IMO Dividend Payout.IMO Dividend Payout, showing the Payout Ratio.IMO Dividend Payout.PayoutRetained Earnings

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IMPERIAL OIL LTD

NYSEARCA:IMO (5/23/2025, 8:04:00 PM)

After market: 71.29 -0.4 (-0.56%)

71.69

+0.48 (+0.67%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)05-02 2025-05-02/bmo
Earnings (Next)07-31 2025-07-31/bmo
Inst Owners26.05%
Inst Owner Change2.3%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap36.49B
Analysts66.96
Price Target73.02 (1.86%)
Short Float %11.09%
Short Ratio34.51
Dividend
Industry RankSector Rank
Dividend Yield 2.85%
Yearly Dividend1.7
Dividend Growth(5Y)23.44%
DP25.95%
Div Incr Years20
Div Non Decr Years20
Ex-Date06-04 2025-06-04 (0.72)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.78%
Min EPS beat(2)10.6%
Max EPS beat(2)10.95%
EPS beat(4)4
Avg EPS beat(4)11.06%
Min EPS beat(4)9.59%
Max EPS beat(4)13.08%
EPS beat(8)8
Avg EPS beat(8)9.36%
EPS beat(12)12
Avg EPS beat(12)12.8%
EPS beat(16)12
Avg EPS beat(16)8.34%
Revenue beat(2)0
Avg Revenue beat(2)-20.21%
Min Revenue beat(2)-27.99%
Max Revenue beat(2)-12.43%
Revenue beat(4)0
Avg Revenue beat(4)-19.21%
Min Revenue beat(4)-27.99%
Max Revenue beat(4)-12.43%
Revenue beat(8)0
Avg Revenue beat(8)-19.6%
Revenue beat(12)0
Avg Revenue beat(12)-20.04%
Revenue beat(16)1
Avg Revenue beat(16)-15.74%
PT rev (1m)1.45%
PT rev (3m)1.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.09%
Revenue NY rev (1m)-2.08%
Revenue NY rev (3m)-1.81%
Valuation
Industry RankSector Rank
PE 10.76
Fwd PE 12.26
P/S 0.98
P/FCF 10.85
P/OCF 7.87
P/B 2.07
P/tB 2.09
EV/EBITDA 6.39
EPS(TTM)6.66
EY9.29%
EPS(NY)5.85
Fwd EY8.15%
FCF(TTM)6.61
FCFY9.22%
OCF(TTM)9.11
OCFY12.71%
SpS73.08
BVpS34.59
TBVpS34.35
PEG (NY)N/A
PEG (5Y)0.31
Profitability
Industry RankSector 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 RankSector 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 4.04
F-Score6
WACC8.69%
ROIC/WACC1.48
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)7.2%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%8.52%
EPS Next Y-13.05%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
EPS Next 5Y5.84%
Revenue 1Y (TTM)1.34%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-1.84%
Revenue Next Year4.54%
Revenue Next 2Y3.77%
Revenue Next 3Y1.4%
Revenue Next 5Y-2.1%
EBIT growth 1Y1.11%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year34.84%
EBIT Next 3Y8.37%
EBIT Next 5Y6.98%
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%