IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
Canada - TSX:IMO - CA4530384086 - Common Stock
125.99 CAD
-0.99 (-0.78%)
Taking everything into account, IMO scores 6 out of 10 in our fundamental rating. IMO was compared to 216 industry peers in the Oil, Gas & Consumable Fuels industry. IMO gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
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
IMO has a better Return On Assets (10.64%) than 93.52% of its industry peers.
Looking at the Return On Equity, with a value of 18.80%, IMO belongs to the top of the industry, outperforming 93.52% of the companies in the same industry.
IMO has a better Return On Invested Capital (12.19%) than 95.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IMO is significantly above the industry average of 6.93%.
| 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 fine compared to the rest of the industry. IMO outperforms 60.19% 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 55.09% of the companies in the same industry.
In the last couple of years the Operating Margin of IMO has grown nicely.
IMO's Gross Margin of 22.75% is in line compared to the rest of the industry. IMO outperforms 48.15% of its industry peers.
IMO's Gross Margin has improved in the last couple of years.
| 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
An Altman-Z score of 4.42 indicates that IMO is not in any danger for bankruptcy at the moment.
IMO has a better Altman-Z score (4.42) than 85.19% of its industry peers.
The Debt to FCF ratio of IMO is 0.89, which is an excellent value as it means it would take IMO, only 0.89 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.89, IMO belongs to the top of the industry, outperforming 92.13% of the companies in the same industry.
IMO has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.16, IMO is in the better half of the industry, outperforming 66.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | 4.42 |
ROIC/WACC1.59
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.58 indicates that IMO should not have too much problems paying its short term obligations.
IMO has a Current ratio of 1.58. This is in the better half of the industry: IMO outperforms 74.07% of its industry peers.
IMO has a Quick 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.
The Quick ratio of IMO (1.34) is better than 71.30% 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 -5.12%.
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 decrease in Revenue. In the last year, the revenue decreased by -5.80%.
The Revenue has been growing by 8.60% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.12%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-11.85%
Revenue 1Y (TTM)-5.8%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-16.07%
3.2 Future
IMO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.44% yearly.
IMO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.33% yearly.
EPS Next Y-10.17%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
EPS Next 5Y7.44%
Revenue Next Year-0.21%
Revenue Next 2Y4.26%
Revenue Next 3Y1.47%
Revenue Next 5Y-1.33%
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
The Price/Earnings ratio is 13.88, which indicates a correct valuation of IMO.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than the industry average as 64.35% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. IMO is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.04, IMO is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as IMO.
IMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 17.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IMO is valued a bit cheaper than 69.44% of the companies in the same industry.
IMO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IMO is cheaper than 68.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.08 | ||
| EV/EBITDA | 8.11 |
4.3 Compensation for Growth
IMO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.27%, IMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.90, IMO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, IMO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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 Years30
Div Non Decr Years34
5.3 Sustainability
IMO pays out 27.94% 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.
DP27.94%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
TSX:IMO (9/12/2025, 7:00:00 PM)
125.99
-0.99 (-0.78%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners26.57%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap63.24B
Analysts55
Price Target108.53 (-13.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Yearly Dividend2.37
Dividend Growth(5Y)23.44%
DP27.94%
Div Incr Years30
Div Non Decr Years34
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)-17.7%
Revenue beat(16)1
Avg Revenue beat(16)-15.69%
PT rev (1m)1.72%
PT rev (3m)7.52%
EPS NQ rev (1m)11.09%
EPS NQ rev (3m)-7.5%
EPS NY rev (1m)3.31%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)5.27%
Revenue NQ rev (3m)6.13%
Revenue NY rev (1m)-1.81%
Revenue NY rev (3m)-4.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 17.04 | ||
| P/S | 1.28 | ||
| P/FCF | 14.08 | ||
| P/OCF | 10.09 | ||
| P/B | 2.53 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 8.11 |
EPS(TTM)9.08
EY7.21%
EPS(NY)7.39
Fwd EY5.87%
FCF(TTM)8.95
FCFY7.1%
OCF(TTM)12.49
OCFY9.91%
SpS98.49
BVpS49.81
TBVpS49.48
PEG (NY)N/A
PEG (5Y)0.4
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
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 Turnover1.12
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 | 4.42 |
F-Score6
WACC7.68%
ROIC/WACC1.59
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-10.17%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
EPS Next 5Y7.44%
Revenue 1Y (TTM)-5.8%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-16.07%
Revenue Next Year-0.21%
Revenue Next 2Y4.26%
Revenue Next 3Y1.47%
Revenue Next 5Y-1.33%
EBIT growth 1Y-11.87%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year25.88%
EBIT Next 3Y11.55%
EBIT Next 5Y7.31%
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%