IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:IMO - CA4530384086 - Common Stock
118.58 CAD
-0.61 (-0.51%)
IMO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 201 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 valuation in line with the averages, but it does not seem to be growing. 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.
IMO had a positive operating cash flow in the past year.
IMO had positive earnings in 4 of the past 5 years.
In the past 5 years IMO always reported a positive cash flow from operatings.
1.2 Ratios
IMO has a better Return On Assets (9.31%) than 94.53% of its industry peers.
Looking at the Return On Equity, with a value of 16.89%, IMO belongs to the top of the industry, outperforming 95.02% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.67%, IMO belongs to the best of the industry, outperforming 96.02% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IMO 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
IMO has a better Profit Margin (8.30%) than 60.70% of its industry peers.
IMO's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 10.43%, IMO perfoms like the industry average, outperforming 56.22% of the companies in the same industry.
In the last couple of years the Operating Margin of IMO has grown nicely.
With a Gross Margin value of 22.56%, IMO perfoms like the industry average, outperforming 50.25% of the companies in the same industry.
IMO's Gross Margin has improved in the last couple of years.
| 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.
IMO has less shares outstanding than it did 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 4.16. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
IMO's Altman-Z score of 4.16 is amongst the best of the industry. IMO outperforms 84.08% 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.
A Debt/Equity ratio of 0.17 indicates that IMO is not too dependend on debt financing.
The Debt to Equity ratio of IMO (0.17) is better than 66.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 4.16 |
ROIC/WACC1.45
WACC7.36%
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.
IMO has a better Current ratio (1.47) than 73.13% of its industry peers.
IMO has a Quick Ratio of 1.17. This is a normal value and indicates that IMO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.17, IMO is doing good in the industry, outperforming 69.15% of the companies in the same industry.
| 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.
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
IMO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.11% yearly.
Based on estimates for the next years, IMO will show a decrease in Revenue. The Revenue will decrease by -2.20% on average per year.
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.
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 13.29.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.51, IMO is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.13, the valuation of IMO can be described as correct.
IMO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IMO is cheaper than 61.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. IMO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.29 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
IMO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IMO is cheaper than 71.64% of the companies in the same industry.
79.60% of the companies in the same industry are more expensive than IMO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.19 | ||
| EV/EBITDA | 8.08 |
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)0.38
EPS Next 2Y-6.9%
EPS Next 3Y-2.91%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.46%. 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 2.95.
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 been paying a dividend for at least 10 years, so it has 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.
The dividend of IMO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.92%
EPS Next 2Y-6.9%
EPS Next 3Y-2.91%
TSX:IMO (12/31/2025, 7:00:00 PM)
118.58
-0.61 (-0.51%)
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 Cap58.29B
Revenue(TTM)48.22B
Net Income(TTM)4.00B
Analysts50.43
Price Target114.43 (-3.5%)
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-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)0.96%
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 | 13.29 | ||
| Fwd PE | 15.13 | ||
| P/S | 1.21 | ||
| P/FCF | 12.19 | ||
| P/OCF | 8.86 | ||
| P/B | 2.46 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 8.08 |
EPS(TTM)8.92
EY7.52%
EPS(NY)7.84
Fwd EY6.61%
FCF(TTM)9.73
FCFY8.21%
OCF(TTM)13.38
OCFY11.29%
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 | 4.16 |
F-Score7
WACC7.36%
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 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 13.29 and the Price/Book (PB) ratio is 2.46.
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.