IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:IMO - CA4530384086 - Common Stock
117.62 CAD
+0.33 (+0.28%)
IMO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 201 industry peers in the Oil, Gas & Consumable Fuels industry. IMO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. IMO has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally IMO also has an excellent dividend rating. These ratings could make IMO a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year IMO was profitable.
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 has a Return On Assets of 9.31%. This is amongst the best in the industry. IMO outperforms 94.53% of its industry peers.
IMO has a Return On Equity of 16.89%. This is amongst the best in the industry. IMO outperforms 95.02% of its industry peers.
IMO has a Return On Invested Capital of 10.67%. This is amongst the best in the industry. IMO outperforms 96.02% of its industry peers.
IMO had an Average Return On Invested Capital over the past 3 years of 15.78%. This is significantly above the industry average of 6.51%.
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
The Profit Margin of IMO (8.30%) is better than 60.70% of its industry peers.
In the last couple of years the Profit Margin of IMO has grown nicely.
IMO's Operating Margin of 10.43% is in line compared to the rest of the industry. IMO outperforms 56.22% of its industry peers.
IMO's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 22.56%, IMO perfoms like the industry average, outperforming 50.25% of the companies in the same 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
IMO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, IMO has less shares outstanding
Compared to 5 years ago, IMO has less shares outstanding
The debt/assets ratio for IMO has been reduced compared to a year ago.
2.2 Solvency
IMO has an Altman-Z score of 4.14. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
IMO has a better Altman-Z score (4.14) than 83.58% 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.
With an excellent Debt to FCF ratio value of 0.84, IMO belongs to the best of the industry, outperforming 94.03% of the companies in the same industry.
IMO has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
IMO has a Debt to Equity ratio of 0.17. This is in the better half of the industry: IMO outperforms 64.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.45
WACC7.35%
2.3 Liquidity
A Current Ratio of 1.47 indicates that IMO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.47, IMO is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that IMO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, IMO is in the better half of the industry, outperforming 67.66% 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.
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.
The Revenue has decreased by -6.96% 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)-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 6.11% on average over the next years.
The Revenue is expected to decrease by -2.20% on average over the next years.
EPS Next Y-8.43%
EPS Next 2Y-6.9%
EPS Next 3Y-2.91%
EPS Next 5Y6.11%
Revenue Next Year-5.95%
Revenue Next 2Y0.54%
Revenue Next 3Y2.01%
Revenue Next 5Y-2.2%
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
Based on the Price/Earnings ratio of 13.19, 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 68.16% of the companies are valued more expensively.
IMO is valuated cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.01 indicates a correct valuation of IMO.
Based on the Price/Forward Earnings ratio, IMO is valued a bit cheaper than the industry average as 61.19% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.40. IMO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 15.01 |
4.2 Price Multiples
71.64% of the companies in the same industry are more expensive than IMO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IMO is valued cheaper than 80.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.09 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
IMO has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as IMO's earnings are expected to decrease with -2.91% in the coming years.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-6.9%
EPS Next 3Y-2.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.46%, IMO has a reasonable but not impressive dividend return.
IMO's Dividend Yield is a higher than the industry average which is at 2.95.
Compared to an average S&P500 Dividend Yield of 2.00, IMO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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 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 (12/29/2025, 7:00:00 PM)
117.62
+0.33 (+0.28%)
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 Cap57.82B
Revenue(TTM)48.22B
Net Income(TTM)4.00B
Analysts50.43
Price Target114.43 (-2.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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)0.96%
PT rev (3m)5.44%
EPS NQ rev (1m)2.46%
EPS NQ rev (3m)18.53%
EPS NY rev (1m)0.62%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)-3.22%
Revenue NY rev (3m)-5.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 15.01 | ||
| P/S | 1.2 | ||
| P/FCF | 12.09 | ||
| P/OCF | 8.79 | ||
| P/B | 2.44 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)8.92
EY7.58%
EPS(NY)7.84
Fwd EY6.66%
FCF(TTM)9.73
FCFY8.27%
OCF(TTM)13.38
OCFY11.38%
SpS98.09
BVpS48.18
TBVpS47.84
PEG (NY)N/A
PEG (5Y)0.38
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 | 4.14 |
F-Score7
WACC7.35%
ROIC/WACC1.45
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 5Y6.11%
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-2.2%
EBIT growth 1Y-19.46%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year32.05%
EBIT Next 3Y8.08%
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 -8.43% 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%.