IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:IMO - CA4530384086 - Common Stock
116.04 CAD
+0.76 (+0.66%)
Taking everything into account, IMO scores 7 out of 10 in our fundamental rating. IMO was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. IMO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. IMO is valued correctly, but it does not seem to be growing. Finally IMO also has an excellent dividend rating. With these ratings, IMO could be worth investigating further for dividend investing!.
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.
IMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of IMO (9.31%) is better than 93.69% of its industry peers.
IMO's Return On Equity of 16.89% is amongst the best of the industry. IMO outperforms 94.17% of its industry peers.
IMO has a better Return On Invested Capital (10.67%) than 96.12% 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 6.55%.
The 3 year average ROIC (15.78%) for IMO is well above the current ROIC(10.67%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 16.89% | ||
| ROIC | 10.67% |
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 8.30% is fine compared to the rest of the industry. IMO outperforms 60.19% of its industry peers.
In the last couple of years the Profit Margin of IMO has grown nicely.
With a Operating Margin value of 10.43%, IMO perfoms like the industry average, outperforming 55.83% of the companies in the same industry.
IMO's Operating Margin has improved in the last couple of years.
IMO has a Gross Margin (22.56%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of IMO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 8.3% | ||
| GM | 22.56% |
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.
Compared to 1 year ago, IMO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.12 indicates that IMO is not in any danger for bankruptcy at the moment.
The Altman-Z score of IMO (4.12) is better than 83.50% of its industry peers.
The Debt to FCF ratio of IMO is 0.84, which is an excellent value as it means it would take IMO, only 0.84 years of fcf income to pay off all of its debts.
IMO has a better Debt to FCF ratio (0.84) than 94.17% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that IMO is not too dependend on debt financing.
IMO has a better Debt to Equity ratio (0.17) than 65.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 4.12 |
ROIC/WACC1.46
WACC7.3%
2.3 Liquidity
A Current Ratio of 1.47 indicates that IMO should not have too much problems paying its short term obligations.
The Current ratio of IMO (1.47) is better than 71.84% of its industry peers.
A Quick Ratio of 1.17 indicates that IMO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.17, IMO is doing good in the industry, outperforming 67.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for IMO have decreased by -2.41% 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 decrease in Revenue. The Revenue has decreased by -6.96% in the last year.
The Revenue has been growing by 8.60% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.41%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-6.87%
Revenue 1Y (TTM)-6.96%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-9.13%
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 6.11% on average per year.
The Revenue is expected to decrease by -2.20% on average over the next years.
EPS Next Y-8.1%
EPS Next 2Y-6.1%
EPS Next 3Y-1.96%
EPS Next 5Y6.11%
Revenue Next Year-5.97%
Revenue Next 2Y0.95%
Revenue Next 3Y2.04%
Revenue Next 5Y-2.2%
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
Based on the Price/Earnings ratio of 13.01, the valuation of IMO can be described as correct.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than the industry average as 68.45% 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 26.38.
The Price/Forward Earnings ratio is 14.56, which indicates a correct valuation of IMO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IMO indicates a somewhat cheap valuation: IMO is cheaper than 61.65% of the companies listed in the same industry.
IMO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 14.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IMO is valued a bit cheaper than 71.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IMO is valued cheaply inside the industry as 81.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.93 | ||
| EV/EBITDA | 7.91 |
4.3 Compensation for Growth
The excellent profitability rating of IMO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-6.1%
EPS Next 3Y-1.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.50%, IMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.94, IMO pays a bit more dividend than its industry peers.
IMO's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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 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
33.92% of the earnings are spent on dividend by IMO. This is a low number and sustainable payout ratio.
IMO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.92%
EPS Next 2Y-6.1%
EPS Next 3Y-1.96%
TSX:IMO (12/19/2025, 7:00:00 PM)
116.04
+0.76 (+0.66%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners30.16%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap57.04B
Revenue(TTM)48.22B
Net Income(TTM)4.00B
Analysts50.43
Price Target114.69 (-1.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend2.37
Dividend Growth(5Y)23.44%
DP33.92%
Div Incr Years30
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.02%
Min EPS beat(2)11.99%
Max EPS beat(2)12.06%
EPS beat(4)4
Avg EPS beat(4)12.54%
Min EPS beat(4)10.95%
Max EPS beat(4)15.18%
EPS beat(8)8
Avg EPS beat(8)12.27%
EPS beat(12)12
Avg EPS beat(12)10.25%
EPS beat(16)14
Avg EPS beat(16)10.88%
Revenue beat(2)0
Avg Revenue beat(2)-13.99%
Min Revenue beat(2)-19.09%
Max Revenue beat(2)-8.9%
Revenue beat(4)0
Avg Revenue beat(4)-16.26%
Min Revenue beat(4)-27.99%
Max Revenue beat(4)-8.9%
Revenue beat(8)0
Avg Revenue beat(8)-18.12%
Revenue beat(12)0
Avg Revenue beat(12)-17.56%
Revenue beat(16)1
Avg Revenue beat(16)-16.55%
PT rev (1m)2.98%
PT rev (3m)5.67%
EPS NQ rev (1m)-4.31%
EPS NQ rev (3m)17.66%
EPS NY rev (1m)0.99%
EPS NY rev (3m)2.31%
Revenue NQ rev (1m)-15.51%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)-3.24%
Revenue NY rev (3m)-5.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 14.56 | ||
| P/S | 1.18 | ||
| P/FCF | 11.93 | ||
| P/OCF | 8.67 | ||
| P/B | 2.41 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)8.92
EY7.69%
EPS(NY)7.97
Fwd EY6.87%
FCF(TTM)9.73
FCFY8.39%
OCF(TTM)13.38
OCFY11.53%
SpS98.09
BVpS48.18
TBVpS47.84
PEG (NY)N/A
PEG (5Y)0.37
Graham Number98.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 16.89% | ||
| ROCE | 13.9% | ||
| ROIC | 10.67% | ||
| ROICexc | 11.25% | ||
| ROICexgc | 11.3% | ||
| OM | 10.43% | ||
| PM (TTM) | 8.3% | ||
| GM | 22.56% | ||
| FCFM | 9.92% |
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-Score7
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 73.34% | ||
| Cap/Sales | 3.72% | ||
| Interest Coverage | 201.2 | ||
| Cash Conversion | 87.97% | ||
| Profit Quality | 119.55% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 4.12 |
F-Score7
WACC7.3%
ROIC/WACC1.46
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)-2.41%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-6.87%
EPS Next Y-8.1%
EPS Next 2Y-6.1%
EPS Next 3Y-1.96%
EPS Next 5Y6.11%
Revenue 1Y (TTM)-6.96%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-9.13%
Revenue Next Year-5.97%
Revenue Next 2Y0.95%
Revenue Next 3Y2.04%
Revenue Next 5Y-2.2%
EBIT growth 1Y-19.46%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year31.5%
EBIT Next 3Y10.27%
EBIT Next 5Y7.59%
FCF growth 1Y40.14%
FCF growth 3Y-1.98%
FCF growth 5Y8.05%
OCF growth 1Y26.03%
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 7 / 10 to IMO.CA.
What is the valuation status for IMO stock?
ChartMill assigns a valuation rating of 6 / 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 -8.1% 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 7 / 10 and the dividend payout ratio is 33.92%.