IMPERIAL OIL LTD (IMO)

CA4530384086 - Common Stock

69.04  +1.07 (+1.57%)

After market: 69.04 0 (0%)

Fundamental Rating

5

Taking everything into account, IMO scores 5 out of 10 in our fundamental rating. IMO was compared to 213 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 on the other hand it scores bad on growth.



5

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.
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

IMO's Return On Assets of 11.38% is fine compared to the rest of the industry. IMO outperforms 74.18% of its industry peers.
IMO has a better Return On Equity (20.92%) than 70.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.33%, IMO is in the better half of the industry, outperforming 71.83% of the companies in the same industry.
Industry RankSector Rank
ROA 11.38%
ROE 20.92%
ROIC 13.33%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 9.50%, IMO is in line with its industry, outperforming 40.85% of the companies in the same industry.
In the last couple of years the Profit Margin of IMO has grown nicely.
IMO's Operating Margin of 12.03% is on the low side compared to the rest of the industry. IMO is outperformed by 66.20% of its industry peers.
In the last couple of years the Operating Margin of IMO has grown nicely.
IMO has a Gross Margin of 22.56%. This is in the lower half of the industry: IMO underperforms 68.08% of its industry peers.
In the last couple of years the Gross Margin of IMO has grown nicely.
Industry RankSector Rank
OM 12.03%
PM (TTM) 9.5%
GM 22.56%
OM growth 3YN/A
OM growth 5Y6.92%
PM growth 3YN/A
PM growth 5Y7.82%
GM growth 3Y15%
GM growth 5Y1.53%

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IMO is creating some value.
There is no outstanding debt for IMO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 4.03 indicates that IMO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.03, IMO belongs to the top of the industry, outperforming 85.92% of the companies in the same industry.
The Debt to FCF ratio of IMO is 1.09, which is an excellent value as it means it would take IMO, only 1.09 years of fcf income to pay off all of its debts.
IMO's Debt to FCF ratio of 1.09 is amongst the best of the industry. IMO outperforms 84.04% of its industry peers.
IMO has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
IMO's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. IMO outperforms 71.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 1.09
Altman-Z 4.03
ROIC/WACC1.64
WACC8.11%

2.3 Liquidity

IMO has a Current Ratio of 1.34. 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 Current ratio of 1.34. This is comparable to the rest of the industry: IMO outperforms 53.99% of its industry peers.
A Quick Ratio of 1.04 indicates that IMO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.04, IMO perfoms like the industry average, outperforming 49.30% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.34
Quick Ratio 1.04

3

3. Growth

3.1 Past

The earnings per share for IMO have decreased strongly by -27.21% in the last year.
The Earnings Per Share has been growing by 23.85% on average over the past years. This is a very strong growth
The Revenue for IMO has decreased by -13.46% in the past year. This is quite bad
The Revenue has been growing slightly by 7.72% on average over the past years.
EPS 1Y (TTM)-27.21%
EPS 3YN/A
EPS 5Y23.85%
EPS Q2Q%5.79%
Revenue 1Y (TTM)-13.46%
Revenue growth 3Y31.53%
Revenue growth 5Y7.72%
Sales Q2Q%2.66%

3.2 Future

IMO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.45% yearly.
IMO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.66% yearly.
EPS Next Y1.37%
EPS Next 2Y2.73%
EPS Next 3Y8.32%
EPS Next 5Y22.45%
Revenue Next Year21.61%
Revenue Next 2Y11.7%
Revenue Next 3Y-1.66%
Revenue Next 5YN/A

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 stable.
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

4. Valuation

4.1 Price/Earnings Ratio

IMO is valuated reasonably with a Price/Earnings ratio of 10.92.
The rest of the industry has a similar Price/Earnings ratio as IMO.
Compared to an average S&P500 Price/Earnings ratio of 28.24, IMO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.50, the valuation of IMO can be described as reasonable.
IMO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of IMO to the average of the S&P500 Index (19.93), we can say IMO is valued slightly cheaper.
Industry RankSector Rank
PE 10.92
Fwd PE 10.5

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IMO is on the same level as its industry peers.
IMO's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 13.38
EV/EBITDA 6.56

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IMO does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)7.99
PEG (5Y)0.46
EPS Next 2Y2.73%
EPS Next 3Y8.32%

6

5. Dividend

5.1 Amount

IMO has a Yearly Dividend Yield of 2.50%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.82, IMO has a dividend in line with its industry peers.
IMO's Dividend Yield is comparable with the S&P500 average which is at 2.32.
Industry RankSector Rank
Dividend Yield 2.5%

5.2 History

The dividend of IMO is nicely growing with an annual growth rate of 16.65%!
IMO has been paying a dividend for at least 10 years, so it has a reliable track record.
IMO has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)16.65%
Div Incr Years6
Div Non Decr Years6

5.3 Sustainability

IMO pays out 23.06% of its income as dividend. This is a sustainable payout ratio.
IMO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.06%
EPS Next 2Y2.73%
EPS Next 3Y8.32%

IMPERIAL OIL LTD

NYSEARCA:IMO (5/24/2024, 7:04:00 PM)

After market: 69.04 0 (0%)

69.04

+1.07 (+1.57%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap36.99B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.5%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 10.92
Fwd PE 10.5
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)7.99
PEG (5Y)0.46
Profitability
Industry RankSector Rank
ROA 11.38%
ROE 20.92%
ROCE
ROIC
ROICexc
ROICexgc
OM 12.03%
PM (TTM) 9.5%
GM 22.56%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.2
Health
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.34
Quick Ratio 1.04
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-27.21%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y1.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.46%
Revenue growth 3Y31.53%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y