IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
TSX:IMO - Toronto Stock Exchange - CA4530384086 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to IMO. IMO was compared to 219 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 has a correct valuation and a medium growth rate. Finally IMO also has an excellent dividend rating. These ratings would make IMO suitable 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.
Each year in the past 5 years IMO had a positive operating cash flow.
1.2 Ratios
IMO's Return On Assets of 11.16% is amongst the best of the industry. IMO outperforms 93.67% of its industry peers.
IMO's Return On Equity of 20.41% is amongst the best of the industry. IMO outperforms 95.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.05%, IMO belongs to the top of the industry, outperforming 95.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 20.41% | ||
| ROIC | 13.05% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of IMO (9.33%) is better than 61.54% of its industry peers.
IMO's Profit Margin has improved in the last couple of years.
The Operating Margin of IMO (11.89%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of IMO has grown nicely.
With a Gross Margin value of 22.54%, IMO perfoms like the industry average, outperforming 46.61% of the companies in the same industry.
IMO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.89% | ||
| PM (TTM) | 9.33% | ||
| GM | 22.54% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for IMO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.02 indicates that IMO is not in any danger for bankruptcy at the moment.
IMO's Altman-Z score of 4.02 is amongst the best of the industry. IMO outperforms 86.88% of its industry peers.
The Debt to FCF ratio of IMO is 0.97, which is an excellent value as it means it would take IMO, only 0.97 years of fcf income to pay off all of its debts.
IMO's Debt to FCF ratio of 0.97 is amongst the best of the industry. IMO outperforms 91.86% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that IMO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.17, IMO is doing good in the industry, outperforming 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 4.02 |
ROIC/WACC1.65
WACC7.93%
2.3 Liquidity
A Current Ratio of 1.33 indicates that IMO should not have too much problems paying its short term obligations.
IMO has a better Current ratio (1.33) than 69.68% of its industry peers.
A Quick Ratio of 1.10 indicates that IMO should not have too much problems paying its short term obligations.
The Quick ratio of IMO (1.10) is better than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.23% over the past year.
IMO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.08% yearly.
The Revenue has been growing slightly by 1.30% in the past year.
The Revenue has been growing by 8.60% on average over the past years. This is quite good.
EPS 1Y (TTM)6.23%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-4.05%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-3.83%
3.2 Future
The Earnings Per Share is expected to grow by 12.70% on average over the next years. This is quite good.
Based on estimates for the next years, IMO will show a decrease in Revenue. The Revenue will decrease by -1.30% on average per year.
EPS Next Y-7.14%
EPS Next 2Y-3.34%
EPS Next 3Y10.79%
EPS Next 5Y12.7%
Revenue Next Year6.75%
Revenue Next 2Y4.13%
Revenue Next 3Y-2.35%
Revenue Next 5Y-1.3%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
With a Price/Earnings ratio of 10.92, the valuation of IMO can be described as very reasonable.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than 67.87% of the companies in the same industry.
IMO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 11.76, which indicates a very decent valuation of IMO.
IMO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, IMO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 11.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IMO is valued a bit cheaper than the industry average as 75.11% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IMO is valued a bit cheaper than the industry average as 66.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.22 | ||
| EV/EBITDA | 6.59 |
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)0.31
EPS Next 2Y-3.34%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 3.09%.
IMO's Dividend Yield is a higher than the industry average which is at 6.94.
IMO's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
On average, the dividend of IMO grows each year by 16.65%, which is quite nice.
IMO has been paying a dividend for at least 10 years, so it has 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)16.65%
Div Incr Years30
Div Non Decr Years34
5.3 Sustainability
IMO pays out 25.85% 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.
DP25.85%
EPS Next 2Y-3.34%
EPS Next 3Y10.79%
TSX:IMO (3/7/2025, 7:00:00 PM)
98.75
+5.42 (+5.81%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners26.05%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap50.27B
Analysts65.22
Price Target104.23 (5.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend1.35
Dividend Growth(5Y)16.65%
DP25.85%
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)10.95%
Max EPS beat(2)13.08%
EPS beat(4)4
Avg EPS beat(4)10.55%
Min EPS beat(4)8.56%
Max EPS beat(4)13.08%
EPS beat(8)8
Avg EPS beat(8)9.15%
EPS beat(12)11
Avg EPS beat(12)11.46%
EPS beat(16)11
Avg EPS beat(16)7.62%
Revenue beat(2)0
Avg Revenue beat(2)-24.4%
Min Revenue beat(2)-27.99%
Max Revenue beat(2)-20.8%
Revenue beat(4)0
Avg Revenue beat(4)-23.66%
Min Revenue beat(4)-30.26%
Max Revenue beat(4)-15.6%
Revenue beat(8)0
Avg Revenue beat(8)-20.41%
Revenue beat(12)0
Avg Revenue beat(12)-19.65%
Revenue beat(16)1
Avg Revenue beat(16)-15.94%
PT rev (1m)0.61%
PT rev (3m)0.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)24.49%
EPS NY rev (1m)6.47%
EPS NY rev (3m)5.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)51.61%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 11.76 | ||
| P/S | 0.98 | ||
| P/FCF | 12.22 | ||
| P/OCF | 8.4 | ||
| P/B | 2.14 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 6.59 |
EPS(TTM)9.04
EY9.15%
EPS(NY)8.39
Fwd EY8.5%
FCF(TTM)8.08
FCFY8.18%
OCF(TTM)11.75
OCFY11.9%
SpS100.89
BVpS46.11
TBVpS45.79
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 20.41% | ||
| ROCE | 17% | ||
| ROIC | 13.05% | ||
| ROICexc | 13.41% | ||
| ROICexgc | 13.48% | ||
| OM | 11.89% | ||
| PM (TTM) | 9.33% | ||
| GM | 22.54% | ||
| FCFM | 8.01% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.97 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 94.15% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | 145.41 | ||
| Cash Conversion | 73.93% | ||
| Profit Quality | 85.89% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 4.02 |
F-Score7
WACC7.93%
ROIC/WACC1.65
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)6.23%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-4.05%
EPS Next Y-7.14%
EPS Next 2Y-3.34%
EPS Next 3Y10.79%
EPS Next 5Y12.7%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-3.83%
Revenue Next Year6.75%
Revenue Next 2Y4.13%
Revenue Next 3Y-2.35%
Revenue Next 5Y-1.3%
EBIT growth 1Y-1.04%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year28.35%
EBIT Next 3Y10.7%
EBIT Next 5Y9.32%
FCF growth 1Y111.08%
FCF growth 3Y-1.98%
FCF growth 5Y8.05%
OCF growth 1Y60.18%
OCF growth 3Y2.98%
OCF growth 5Y6.19%