IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:IMO - CA4530384086 - Common Stock
128.13 CAD
+2.59 (+2.06%)
Overall IMO gets a fundamental rating of 6 out of 10. We evaluated IMO against 211 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. IMO also has an excellent dividend rating. This makes IMO very considerable for dividend investing!
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.
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's Return On Assets of 9.31% is amongst the best of the industry. IMO outperforms 94.31% of its industry peers.
IMO's Return On Equity of 16.89% is amongst the best of the industry. IMO outperforms 95.26% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.67%, IMO belongs to the top of the industry, outperforming 96.21% 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 6.52%.
The last Return On Invested Capital (10.67%) for IMO is well below the 3 year average (15.78%), which needs to be investigated, but indicates that IMO had better years and this may not be a problem.
| 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
With a decent Profit Margin value of 8.30%, IMO is doing good in the industry, outperforming 61.14% of the companies in the same industry.
IMO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.43%, IMO is in line with its industry, outperforming 57.35% of the companies in the same industry.
IMO's Operating Margin has improved in the last couple of years.
IMO's Gross Margin of 22.56% is in line compared to the rest of the industry. IMO outperforms 51.18% of its industry peers.
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
IMO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
IMO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for IMO has been reduced compared to 5 years ago.
IMO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.31 indicates that IMO is not in any danger for bankruptcy at the moment.
The Altman-Z score of IMO (4.31) is better than 83.89% of its industry peers.
IMO has a debt to FCF ratio of 0.84. This is a very positive value and a sign of high solvency as it would only need 0.84 years to pay back of all of its debts.
IMO has a better Debt to FCF ratio (0.84) than 93.36% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that IMO is not too dependend on debt financing.
IMO has a Debt to Equity ratio of 0.17. This is in the better half of the industry: IMO outperforms 67.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.44
WACC7.39%
2.3 Liquidity
IMO has a Current Ratio of 1.47. This is a normal value and indicates that IMO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of IMO (1.47) is better than 72.99% of its industry peers.
A Quick Ratio of 1.17 indicates that IMO should not have too much problems paying its short term obligations.
IMO's Quick ratio of 1.17 is fine compared to the rest of the industry. IMO outperforms 68.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
IMO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.41%.
The Earnings Per Share has been growing by 35.08% on average over the past years. This is a very strong growth
The Revenue has decreased by -6.96% in the past 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)-2.41%
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
The Earnings Per Share is expected to grow by 4.33% on average over the next years.
Based on estimates for the next years, IMO will show a decrease in Revenue. The Revenue will decrease by -2.24% on average per year.
EPS Next Y-8.43%
EPS Next 2Y-6.9%
EPS Next 3Y-2.91%
EPS Next 5Y4.33%
Revenue Next Year-5.95%
Revenue Next 2Y0.54%
Revenue Next 3Y2.01%
Revenue Next 5Y-2.24%
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
IMO is valuated correctly with a Price/Earnings ratio of 14.36.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than 66.82% of the companies in the same industry.
IMO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.35, which indicates a correct valuation of IMO.
Based on the Price/Forward Earnings ratio, IMO is valued a bit cheaper than 61.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IMO to the average of the S&P500 Index (23.98), we can say IMO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IMO indicates a somewhat cheap valuation: IMO is cheaper than 71.56% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IMO indicates a somewhat cheap valuation: IMO is cheaper than 72.99% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.17 | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
The excellent profitability rating of IMO may justify a higher PE ratio.
IMO's earnings are expected to decrease with -2.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y-6.9%
EPS Next 3Y-2.91%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
IMO's Dividend Yield is a higher than the industry average which is at 2.71.
IMO's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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
IMO pays out 33.92% of its income as dividend. This is a 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-6.9%
EPS Next 3Y-2.91%
TSX:IMO (1/12/2026, 7:00:00 PM)
128.13
+2.59 (+2.06%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners30.51%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap62.98B
Revenue(TTM)48.22B
Net Income(TTM)4.00B
Analysts48.7
Price Target114.43 (-10.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend2.37
Dividend Growth(5Y)23.44%
DP33.92%
Div Incr Years30
Div Non Decr Years34
Ex-DateN/A
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)-0.22%
PT rev (3m)4.2%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)18.53%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 16.35 | ||
| P/S | 1.31 | ||
| P/FCF | 13.17 | ||
| P/OCF | 9.57 | ||
| P/B | 2.66 | ||
| P/tB | 2.68 | ||
| EV/EBITDA | 8.71 |
EPS(TTM)8.92
EY6.96%
EPS(NY)7.84
Fwd EY6.12%
FCF(TTM)9.73
FCFY7.59%
OCF(TTM)13.38
OCFY10.45%
SpS98.09
BVpS48.18
TBVpS47.84
PEG (NY)N/A
PEG (5Y)0.41
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 | 4.31 |
F-Score7
WACC7.39%
ROIC/WACC1.44
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-8.43%
EPS Next 2Y-6.9%
EPS Next 3Y-2.91%
EPS Next 5Y4.33%
Revenue 1Y (TTM)-6.96%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-9.13%
Revenue Next Year-5.95%
Revenue Next 2Y0.54%
Revenue Next 3Y2.01%
Revenue Next 5Y-2.24%
EBIT growth 1Y-19.46%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year32.05%
EBIT Next 3Y8.08%
EBIT Next 5Y7.48%
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 6 / 10 to IMO.CA.
Can you provide the valuation status for IMPERIAL OIL LTD?
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.
What are the PE and PB ratios of IMPERIAL OIL LTD (IMO.CA) stock?
The Price/Earnings (PE) ratio for IMPERIAL OIL LTD (IMO.CA) is 14.36 and the Price/Book (PB) ratio is 2.66.
What is the earnings growth outlook for IMPERIAL OIL LTD?
The Earnings per Share (EPS) of IMPERIAL OIL LTD (IMO.CA) is expected to decline by -8.43% in the next year.