IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:IMO - CA4530384086 - Common Stock
128.13 CAD
+2.59 (+2.06%)
IMO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 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.
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 has a Return On Assets of 9.31%. This is amongst the best in 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.
IMO has a Return On Invested Capital of 10.67%. This is amongst the best in the industry. IMO outperforms 96.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IMO 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
IMO's Profit Margin of 8.30% is fine compared to the rest of the industry. IMO outperforms 61.14% of its industry peers.
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.
The Gross Margin of IMO (22.56%) is comparable to the rest of the 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.
The number of shares outstanding for IMO has been reduced compared to 1 year ago.
Compared to 5 years ago, IMO has less shares outstanding
Compared to 1 year ago, IMO has an improved debt to assets ratio.
2.2 Solvency
IMO has an Altman-Z score of 4.31. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
IMO's Altman-Z score of 4.31 is amongst the best of the industry. IMO outperforms 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.
IMO has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
IMO's Debt to Equity ratio of 0.17 is fine compared to the rest 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
A Current Ratio of 1.47 indicates that IMO should not have too much problems paying its short term obligations.
IMO has a better Current ratio (1.47) than 72.99% 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.
The Quick ratio of IMO (1.17) is better than 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%.
IMO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.08% yearly.
IMO shows a decrease in Revenue. In the last year, the revenue decreased by -6.96%.
IMO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.60% yearly.
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 4.33% on average per year.
IMO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.24% yearly.
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.
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 14.36, the valuation of IMO can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of IMO indicates a somewhat cheap valuation: IMO is cheaper than 66.82% of the companies listed 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.
A Price/Forward Earnings ratio of 16.35 indicates a correct valuation of IMO.
61.61% of the companies in the same industry are more expensive than IMO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.98. IMO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IMO is valued a bit cheaper than the industry average as 71.56% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IMO is valued a bit cheaper than 72.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.17 | ||
| EV/EBITDA | 8.71 |
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)0.41
EPS Next 2Y-6.9%
EPS Next 3Y-2.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.34%, IMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.71, IMO pays a bit more dividend than its industry peers.
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
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 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
33.92% of the earnings are spent on dividend by IMO. This is a low number and 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 (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.