IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:IMO - CA4530384086 - Common Stock
117.32 CAD
-6.5 (-5.25%)
IMO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 206 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.
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
With an excellent Return On Assets value of 9.31%, IMO belongs to the best of the industry, outperforming 93.69% of the companies in the same industry.
IMO has a Return On Equity of 16.89%. This is amongst the best in the industry. IMO outperforms 94.17% of its industry peers.
The Return On Invested Capital of IMO (10.67%) is better than 96.12% 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 6.55%.
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 has a Profit Margin of 8.30%. This is in the better half of the industry: IMO outperforms 60.19% of its industry peers.
IMO's Profit Margin has improved in the last couple of years.
The Operating Margin of IMO (10.43%) is comparable to the rest of the industry.
IMO's Operating Margin has improved in the last couple of years.
IMO has a Gross Margin of 22.56%. This is comparable to the rest of the industry: IMO outperforms 50.97% 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.
Compared to 1 year ago, IMO has less shares outstanding
IMO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IMO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.14 indicates that IMO is not in any danger for bankruptcy at the moment.
IMO has a Altman-Z score of 4.14. This is amongst the best in the industry. IMO outperforms 83.01% 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's Debt to FCF ratio of 0.84 is amongst the best of the industry. IMO outperforms 94.17% of its industry peers.
IMO has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of IMO (0.17) is better than 65.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.46
WACC7.31%
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's Current ratio of 1.47 is fine compared to the rest of the industry. IMO outperforms 71.84% 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.
IMO has a better Quick ratio (1.17) than 67.96% 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%.
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.
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
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
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
IMO is valuated correctly with a Price/Earnings ratio of 13.15.
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 26.43.
The Price/Forward Earnings ratio is 14.72, which indicates a correct valuation of IMO.
61.16% of the companies in the same industry are more expensive than IMO, based on the Price/Forward Earnings ratio.
IMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 14.72 |
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 71.36% 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 79.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.06 | ||
| EV/EBITDA | 8 |
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
IMO has a Yearly Dividend Yield of 2.27%. 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 2.87.
IMO's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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 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 (12/16/2025, 7:00:00 PM)
117.32
-6.5 (-5.25%)
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 Cap57.67B
Revenue(TTM)48.22B
Net Income(TTM)4.00B
Analysts50.43
Price Target114.69 (-2.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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)2.16%
EPS NQ rev (3m)17.66%
EPS NY rev (1m)0.99%
EPS NY rev (3m)2.31%
Revenue NQ rev (1m)-1.97%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)-3.24%
Revenue NY rev (3m)-5.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 14.72 | ||
| P/S | 1.2 | ||
| P/FCF | 12.06 | ||
| P/OCF | 8.77 | ||
| P/B | 2.43 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 8 |
EPS(TTM)8.92
EY7.6%
EPS(NY)7.97
Fwd EY6.79%
FCF(TTM)9.73
FCFY8.29%
OCF(TTM)13.38
OCFY11.41%
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 | 4.14 |
F-Score7
WACC7.31%
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 6 / 10 to IMO.CA.
What is the valuation status for IMO stock?
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.
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%.