IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
Canada - TSX:IMO - CA4530384086 - Common Stock
126.19 CAD
+2.14 (+1.73%)
IMO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 218 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 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.
Of the past 5 years IMO 4 years were profitable.
IMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IMO's Return On Assets of 10.64% is amongst the best of the industry. IMO outperforms 93.58% of its industry peers.
With an excellent Return On Equity value of 18.80%, IMO belongs to the best of the industry, outperforming 94.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.19%, IMO belongs to the top of the industry, outperforming 95.87% of the companies in the same industry.
IMO had an Average Return On Invested Capital over the past 3 years of 15.78%. This is significantly above the industry average of 6.89%.
| 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
With a decent Profit Margin value of 9.51%, IMO is doing good in the industry, outperforming 60.55% of the companies in the same industry.
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 56.88% of the companies in the same industry.
IMO's Operating Margin has improved in the last couple of years.
IMO's Gross Margin of 22.75% is in line compared to the rest of the industry. IMO outperforms 49.54% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IMO is creating value.
The number of shares outstanding for IMO has been reduced compared to 1 year ago.
IMO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IMO has been reduced compared to a year ago.
2.2 Solvency
IMO has an Altman-Z score of 4.42. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
IMO's Altman-Z score of 4.42 is amongst the best of the industry. IMO outperforms 83.49% of its industry peers.
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's Debt to FCF ratio of 0.89 is amongst the best of the industry. IMO outperforms 92.66% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that IMO is not too dependend on debt financing.
The Debt to Equity ratio of IMO (0.16) is better than 66.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | 4.42 |
ROIC/WACC1.64
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.58 indicates that IMO should not have too much problems paying its short term obligations.
The Current ratio of IMO (1.58) is better than 72.94% 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.
IMO's Quick ratio of 1.34 is fine compared to the rest of the industry. IMO outperforms 69.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The earnings per share for IMO have decreased by -2.07% in the last year.
The Earnings Per Share has been growing by 35.08% on average over the past years. This is a very strong growth
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)-2.07%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-7.51%
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 4.77% on average per year.
The Revenue is expected to decrease by -1.01% on average over the next years.
EPS Next Y-10.17%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
EPS Next 5Y4.77%
Revenue Next Year-1.44%
Revenue Next 2Y3.16%
Revenue Next 3Y1.47%
Revenue Next 5Y-1.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.10, IMO is valued correctly.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than 65.60% of the companies in the same industry.
IMO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.07, IMO is valued on the expensive side.
IMO's Price/Forward Earnings ratio is in line with the industry average.
IMO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 17.07 |
4.2 Price Multiples
IMO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IMO is cheaper than 70.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IMO is valued a bit cheaper than the industry average as 69.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.11 | ||
| EV/EBITDA | 8.13 |
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 2.25%, IMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.34, IMO pays a bit more dividend than its industry peers.
IMO's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
The dividend of IMO is nicely growing with an annual growth rate of 23.44%!
IMO has paid a dividend for at least 10 years, which is 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 Years30
Div Non Decr Years34
5.3 Sustainability
27.94% 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.
DP27.94%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
TSX:IMO (11/3/2025, 7:00:00 PM)
126.19
+2.14 (+1.73%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners27.96%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap63.34B
Revenue(TTM)51.36B
Net Income(TTM)4.70B
Analysts52.17
Price Target111.37 (-11.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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)2.62%
PT rev (3m)6.07%
EPS NQ rev (1m)4.99%
EPS NQ rev (3m)15.17%
EPS NY rev (1m)0%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)22.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 17.07 | ||
| P/S | 1.28 | ||
| P/FCF | 14.11 | ||
| P/OCF | 10.11 | ||
| P/B | 2.53 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 8.13 |
EPS(TTM)8.95
EY7.09%
EPS(NY)7.39
Fwd EY5.86%
FCF(TTM)8.95
FCFY7.09%
OCF(TTM)12.49
OCFY9.9%
SpS98.49
BVpS49.81
TBVpS49.48
PEG (NY)N/A
PEG (5Y)0.4
Graham Number100.15
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 | 4.42 |
F-Score6
WACC7.44%
ROIC/WACC1.64
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)-2.07%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-5.56%
EPS Next Y-10.17%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
EPS Next 5Y4.77%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-7.51%
Revenue Next Year-1.44%
Revenue Next 2Y3.16%
Revenue Next 3Y1.47%
Revenue Next 5Y-1.01%
EBIT growth 1Y-11.87%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year31.2%
EBIT Next 3Y11.89%
EBIT Next 5Y7.65%
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.CA FAQ
Can you provide the ChartMill fundamental rating for IMPERIAL OIL LTD?
ChartMill assigns a fundamental rating of 6 / 10 to IMO.CA.
What is the valuation status for IMO stock?
ChartMill assigns a valuation rating of 5 / 10 to IMPERIAL OIL LTD (IMO.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for IMPERIAL OIL LTD?
IMPERIAL OIL LTD (IMO.CA) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for IMO stock?
The Earnings per Share (EPS) of IMPERIAL OIL LTD (IMO.CA) is expected to decline by -10.17% in the next year.
How sustainable is the dividend of IMPERIAL OIL LTD (IMO.CA) stock?
The dividend rating of IMPERIAL OIL LTD (IMO.CA) is 6 / 10 and the dividend payout ratio is 27.94%.