IMPERIAL OIL LTD (IMO) Stock Fundamental Analysis
USA - NYSEARCA:IMO - CA4530384086 - Common Stock
96.13 USD
-0.63 (-0.65%)
96.1277 USD
0 (0%)
IMO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 210 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 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.
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 10.64%, IMO belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.80%, IMO belongs to the top of the industry, outperforming 83.81% of the companies in the same industry.
IMO's Return On Invested Capital of 12.19% is amongst the best of the industry. IMO outperforms 87.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IMO is significantly below the industry average of 21.85%.
| 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
IMO's Profit Margin of 9.51% is in line compared to the rest of the industry. IMO outperforms 54.76% of its industry peers.
IMO's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 12.03%, IMO perfoms like the industry average, outperforming 42.38% of the companies in the same industry.
In the last couple of years the Operating Margin of IMO has grown nicely.
The Gross Margin of IMO (22.75%) is worse than 64.29% 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
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.
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
IMO has an Altman-Z score of 4.57. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.57, IMO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
IMO has a debt to FCF ratio of 0.89. This is a very positive value and a sign of high solvency as it would only need 0.89 years to pay back of all of its debts.
IMO has a Debt to FCF ratio of 0.89. This is amongst the best in the industry. IMO outperforms 90.48% 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.
IMO's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. IMO outperforms 71.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | 4.57 |
ROIC/WACC1.67
WACC7.31%
2.3 Liquidity
IMO has a Current Ratio of 1.58. 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 1.58, IMO is doing good in the industry, outperforming 70.00% 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.
IMO has a better Quick ratio (1.34) than 68.10% of its industry peers.
| 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 -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.
The Revenue has been growing slightly by 1.30% in the past year.
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)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-9.13%
3.2 Future
IMO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.92% yearly.
Based on estimates for the next years, IMO will show a decrease in Revenue. The Revenue will decrease by -0.87% on average per year.
EPS Next Y-9%
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
EPS Next 5Y4.92%
Revenue Next Year-2.82%
Revenue Next 2Y0.86%
Revenue Next 3Y1.2%
Revenue Next 5Y-0.87%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 15.09, IMO is valued correctly.
IMO's Price/Earnings ratio is in line with the industry average.
IMO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
With a Price/Forward Earnings ratio of 17.52, IMO is valued on the expensive side.
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 34.57, IMO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.09 | ||
| Fwd PE | 17.52 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IMO.
62.38% of the companies in the same industry are more expensive than IMO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.05 | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
The decent profitability rating of IMO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.24%.
IMO's Dividend Yield is comparable with the industry average which is at 5.88.
IMO's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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.
IMO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.94%
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
96.13
-0.63 (-0.65%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners27.96%
Inst Owner Change0.04%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap48.25B
Revenue(TTM)51.36B
Net Income(TTM)4.70B
Analysts51.3
Price Target79.86 (-16.92%)
Short Float %12.26%
Short Ratio43.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend1.68
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)1.35%
PT rev (3m)1.96%
EPS NQ rev (1m)1.59%
EPS NQ rev (3m)4.43%
EPS NY rev (1m)1.31%
EPS NY rev (3m)4.65%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)20.5%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-4.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.09 | ||
| Fwd PE | 17.52 | ||
| P/S | 1.37 | ||
| P/FCF | 15.05 | ||
| P/OCF | 10.78 | ||
| P/B | 2.7 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 8.71 |
EPS(TTM)6.37
EY6.63%
EPS(NY)5.49
Fwd EY5.71%
FCF(TTM)6.39
FCFY6.64%
OCF(TTM)8.91
OCFY9.27%
SpS70.31
BVpS35.55
TBVpS35.32
PEG (NY)N/A
PEG (5Y)0.43
Graham Number71.39
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
ROICexgc growth 3Y20.23%
ROICexgc 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 | 4.57 |
F-Score6
WACC7.31%
ROIC/WACC1.67
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)-2.41%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-6.87%
EPS Next Y-9%
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
EPS Next 5Y4.92%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-9.13%
Revenue Next Year-2.82%
Revenue Next 2Y0.86%
Revenue Next 3Y1.2%
Revenue Next 5Y-0.87%
EBIT growth 1Y-11.87%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year31.2%
EBIT Next 3Y11.89%
EBIT Next 5Y7.8%
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%
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.
What is the valuation status for IMO stock?
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 6 / 10.
Can you provide the expected EPS growth for IMO stock?
The Earnings per Share (EPS) of IMPERIAL OIL LTD (IMO) is expected to decline by -9% in the next year.
How sustainable is the dividend of IMPERIAL OIL LTD (IMO) stock?
The dividend rating of IMPERIAL OIL LTD (IMO) is 6 / 10 and the dividend payout ratio is 27.94%.