IMPERIAL OIL LTD (IMO) Stock Fundamental Analysis
NYSEARCA:IMO - NYSE Arca - CA4530384086 - Common Stock - Currency: USD
Overall IMO gets a fundamental rating of 6 out of 10. We evaluated IMO against 208 industry peers in the Oil, Gas & Consumable Fuels industry. While IMO has a great health rating, its profitability is only average at the moment. IMO has a valuation in line with the averages, but it does not seem to be growing.
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.
IMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.13%, IMO belongs to the top of the industry, outperforming 85.58% of the companies in the same industry.
The Return On Equity of IMO (20.00%) is better than 85.10% of its industry peers.
IMO has a better Return On Invested Capital (12.90%) than 88.46% 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 23.51%.
| 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
IMO has a Profit Margin of 9.47%. This is comparable to the rest of the industry: IMO outperforms 53.37% of its industry peers.
IMO's Profit Margin has improved in the last couple of years.
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 64.42% 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.
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.
IMO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.29 indicates that IMO is not in any danger for bankruptcy at the moment.
IMO's Altman-Z score of 4.29 is amongst the best of the industry. IMO outperforms 89.42% of its industry peers.
IMO has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
IMO has a better Debt to FCF ratio (0.86) than 89.90% 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 71.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 4.29 |
ROIC/WACC1.69
WACC7.63%
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 Current ratio of 1.48. This is in the better half of the industry: IMO outperforms 65.87% 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.
IMO has a better Quick ratio (1.22) than 62.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The earnings per share for IMO have decreased by -5.12% in the last year.
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.
Looking at the last year, IMO shows a small growth in Revenue. The Revenue has grown by 1.30% in the last year.
Measured over the past years, IMO shows a quite strong growth in Revenue. The Revenue has been growing by 8.60% on average per year.
EPS 1Y (TTM)-5.12%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-11.85%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-16.07%
3.2 Future
The Earnings Per Share is expected to grow by 5.42% on average over the next years.
IMO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.39% yearly.
EPS Next Y-13.05%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
EPS Next 5Y5.42%
Revenue Next Year1.63%
Revenue Next 2Y2.9%
Revenue Next 3Y1.88%
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.
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
IMO is valuated correctly with a Price/Earnings ratio of 12.69.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than 61.06% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.93. IMO is valued rather cheaply when compared to this.
IMO is valuated correctly with a Price/Forward Earnings ratio of 14.22.
IMO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.31, IMO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 14.22 |
4.2 Price Multiples
60.10% of the companies in the same industry are more expensive than IMO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IMO indicates a somewhat cheap valuation: IMO is cheaper than 64.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.58 | ||
| EV/EBITDA | 7.38 |
4.3 Compensation for Growth
The decent profitability rating of IMO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.47%, IMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.34, IMO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, IMO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
On average, the dividend of IMO grows each year by 23.44%, which is quite nice.
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%
83.6
+0.39 (+0.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners26.57%
Inst Owner Change-0.27%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap42.56B
Analysts54.17
Price Target78.32 (-6.32%)
Short Float %12.09%
Short Ratio48.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend1.72
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)5.97%
PT rev (3m)7.27%
EPS NQ rev (1m)9.31%
EPS NQ rev (3m)-13.2%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.13%
Revenue NQ rev (3m)-9.82%
Revenue NY rev (1m)-2.78%
Revenue NY rev (3m)-2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 14.22 | ||
| P/S | 1.14 | ||
| P/FCF | 12.58 | ||
| P/OCF | 9.12 | ||
| P/B | 2.4 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 7.38 |
EPS(TTM)6.59
EY7.88%
EPS(NY)5.88
Fwd EY7.03%
FCF(TTM)6.65
FCFY7.95%
OCF(TTM)9.17
OCFY10.97%
SpS73.51
BVpS34.79
TBVpS34.55
PEG (NY)N/A
PEG (5Y)0.36
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 | 4.29 |
F-Score6
WACC7.63%
ROIC/WACC1.69
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-13.05%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
EPS Next 5Y5.42%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-16.07%
Revenue Next Year1.63%
Revenue Next 2Y2.9%
Revenue Next 3Y1.88%
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%