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 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year IMO was profitable.
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
IMO has a Return On Assets of 11.13%. This is amongst the best in the industry. IMO outperforms 84.04% of its industry peers.
IMO's Return On Equity of 20.00% is amongst the best of the industry. IMO outperforms 84.98% of its industry peers.
The Return On Invested Capital of IMO (12.90%) is better than 87.79% of its industry peers.
IMO had an Average Return On Invested Capital over the past 3 years of 15.78%. This is significantly below the industry average of 25.73%.
| 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 (9.47%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of IMO has grown nicely.
With a Operating Margin value of 12.01%, IMO perfoms like the industry average, outperforming 41.78% of the companies in the same industry.
IMO's Operating Margin has improved in the last couple of years.
IMO's Gross Margin of 22.73% is on the low side compared to the rest of the industry. IMO is outperformed by 64.79% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
2.2 Solvency
IMO has an Altman-Z score of 4.03. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.03, IMO belongs to the best of the industry, outperforming 88.26% of the companies in the same industry.
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's Debt to FCF ratio of 0.86 is amongst the best of 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.
With a decent Debt to Equity ratio value of 0.16, IMO is doing good in the industry, outperforming 71.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 4.03 |
ROIC/WACC1.49
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.48 indicates that IMO should not have too much problems paying its short term obligations.
The Current ratio of IMO (1.48) is better than 64.79% 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 62.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
IMO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.36%, which is quite good.
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.
IMO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.34%.
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)8.36%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%13%
Revenue 1Y (TTM)1.34%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%1.91%
3.2 Future
Based on estimates for the next years, IMO will show a small growth in Earnings Per Share. The EPS will grow by 5.84% on average per year.
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
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.
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 reasonably with a Price/Earnings ratio of 10.55.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than the industry average as 69.48% of the companies are valued more expensively.
IMO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.25.
The Price/Forward Earnings ratio is 12.15, which indicates a correct valuation of IMO.
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 (22.15), we can say IMO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
63.38% of the companies in the same industry are more expensive than IMO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IMO is valued a bit cheaper than the industry average as 71.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.75 | ||
| EV/EBITDA | 6.38 |
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)0.3
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.91%. Purely for dividend investing, there may be better candidates out there.
IMO's Dividend Yield is comparable with the industry average which is at 6.82.
IMO's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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 25.95% 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.
DP25.95%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
71.35
-0.47 (-0.65%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners26.05%
Inst Owner Change2.3%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap36.32B
Analysts66.96
Price Target73.02 (2.34%)
Short Float %11.09%
Short Ratio34.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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)-0.79%
PT rev (3m)1.1%
EPS NQ rev (1m)-17.83%
EPS NQ rev (3m)-16.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.37%
Revenue NQ rev (1m)-10.88%
Revenue NQ rev (3m)-9.02%
Revenue NY rev (1m)-2.61%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 12.15 | ||
| P/S | 0.97 | ||
| P/FCF | 10.75 | ||
| P/OCF | 7.8 | ||
| P/B | 2.05 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 6.38 |
EPS(TTM)6.76
EY9.47%
EPS(NY)5.87
Fwd EY8.23%
FCF(TTM)6.64
FCFY9.3%
OCF(TTM)9.15
OCFY12.83%
SpS73.38
BVpS34.73
TBVpS34.5
PEG (NY)N/A
PEG (5Y)0.3
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 | 4.03 |
F-Score6
WACC8.66%
ROIC/WACC1.49
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)8.36%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%13%
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%1.91%
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 Year25.88%
EBIT Next 3Y11.55%
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%