IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
Canada - TSX:IMO - CA4530384086 - Common Stock
120.76 CAD
-2.66 (-2.16%)
Overall IMO gets a fundamental rating of 6 out of 10. We evaluated IMO against 210 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
IMO had positive earnings in the past year.
In the past year IMO had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 10.64%, IMO belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
With an excellent Return On Equity value of 18.80%, IMO belongs to the best of the industry, outperforming 93.81% of the companies in the same industry.
The Return On Invested Capital of IMO (12.19%) is better than 95.71% 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 6.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.64% | ||
| ROE | 18.8% | ||
| ROIC | 12.19% |
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 9.51% is in line compared to the rest of the industry. IMO outperforms 59.05% 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 12.03%, IMO is in line with its industry, outperforming 55.24% of the companies in the same industry.
IMO's Operating Margin has improved in the last couple of years.
IMO's Gross Margin of 22.75% is in line compared to the rest of the industry. IMO outperforms 47.62% of its industry peers.
IMO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.03% | ||
| PM (TTM) | 9.51% | ||
| GM | 22.75% |
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
The number of shares outstanding for IMO has been reduced compared to 5 years ago.
The debt/assets ratio for IMO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.33 indicates that IMO is not in any danger for bankruptcy at the moment.
IMO's Altman-Z score of 4.33 is amongst the best of the industry. IMO outperforms 83.81% of its industry peers.
IMO has a debt to FCF ratio of 0.89. This is a very positive value and a sign of high solvency as it would only need 0.89 years to pay back of all of its debts.
IMO has a Debt to FCF ratio of 0.89. This is amongst the best in the industry. IMO outperforms 91.90% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that IMO is not too dependend on debt financing.
IMO has a better Debt to Equity ratio (0.16) than 64.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.6
WACC7.61%
2.3 Liquidity
A Current Ratio of 1.58 indicates that IMO should not have too much problems paying its short term obligations.
IMO has a better Current ratio (1.58) than 73.33% of its industry peers.
IMO has a Quick Ratio of 1.34. 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 Quick ratio of 1.34 is fine compared to the rest of the industry. IMO outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
IMO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.12%.
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.
Looking at the last year, IMO shows a decrease in Revenue. The Revenue has decreased by -5.80% in the last 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)-5.12%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-11.85%
Revenue 1Y (TTM)-5.8%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-16.07%
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 4.77% on average per year.
Based on estimates for the next years, IMO will show a decrease in Revenue. The Revenue will decrease by -1.01% on average per year.
EPS Next Y-10.17%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
EPS Next 5Y4.77%
Revenue Next Year-1.44%
Revenue Next 2Y3.16%
Revenue Next 3Y1.47%
Revenue Next 5Y-1.01%
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
The Price/Earnings ratio is 13.30, which indicates a correct valuation of IMO.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than the industry average as 64.76% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.31. IMO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 16.33, the valuation of IMO can be described as correct.
IMO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, IMO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 16.33 |
4.2 Price Multiples
69.52% 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 a bit cheaper than the industry average as 69.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.5 | ||
| EV/EBITDA | 7.79 |
4.3 Compensation for Growth
The decent profitability rating of IMO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, IMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.51, IMO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, IMO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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
IMO pays out 27.94% 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.
DP27.94%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
TSX:IMO (10/15/2025, 7:00:00 PM)
120.76
-2.66 (-2.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners27.96%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap60.61B
Analysts52.17
Price Target109.82 (-9.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend2.37
Dividend Growth(5Y)23.44%
DP27.94%
Div Incr Years30
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.62%
Min EPS beat(2)12.06%
Max EPS beat(2)15.18%
EPS beat(4)4
Avg EPS beat(4)12.82%
Min EPS beat(4)10.95%
Max EPS beat(4)15.18%
EPS beat(8)8
Avg EPS beat(8)11.2%
EPS beat(12)12
Avg EPS beat(12)10.73%
EPS beat(16)13
Avg EPS beat(16)10.11%
Revenue beat(2)0
Avg Revenue beat(2)-8.99%
Min Revenue beat(2)-9.09%
Max Revenue beat(2)-8.9%
Revenue beat(4)0
Avg Revenue beat(4)-16.69%
Min Revenue beat(4)-27.99%
Max Revenue beat(4)-8.9%
Revenue beat(8)0
Avg Revenue beat(8)-19.15%
Revenue beat(12)0
Avg Revenue beat(12)-17.7%
Revenue beat(16)1
Avg Revenue beat(16)-15.69%
PT rev (1m)1.19%
PT rev (3m)8.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.1%
EPS NY rev (1m)0%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)21.15%
Revenue NY rev (1m)-1.24%
Revenue NY rev (3m)-5.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 16.33 | ||
| P/S | 1.23 | ||
| P/FCF | 13.5 | ||
| P/OCF | 9.67 | ||
| P/B | 2.42 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)9.08
EY7.52%
EPS(NY)7.39
Fwd EY6.12%
FCF(TTM)8.95
FCFY7.41%
OCF(TTM)12.49
OCFY10.34%
SpS98.49
BVpS49.81
TBVpS49.48
PEG (NY)N/A
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.64% | ||
| ROE | 18.8% | ||
| ROCE | 15.88% | ||
| ROIC | 12.19% | ||
| ROICexc | 13.02% | ||
| ROICexgc | 13.08% | ||
| OM | 12.03% | ||
| PM (TTM) | 9.51% | ||
| GM | 22.75% | ||
| FCFM | 9.08% |
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
ROICexcg growth 3Y20.23%
ROICexcg 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-Score6
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.89 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 86.9% | ||
| Cap/Sales | 3.6% | ||
| Interest Coverage | 212.36 | ||
| Cash Conversion | 78.43% | ||
| Profit Quality | 95.55% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 4.33 |
F-Score6
WACC7.61%
ROIC/WACC1.6
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)-5.12%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-11.85%
EPS Next Y-10.17%
EPS Next 2Y-9.57%
EPS Next 3Y2.42%
EPS Next 5Y4.77%
Revenue 1Y (TTM)-5.8%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-16.07%
Revenue Next Year-1.44%
Revenue Next 2Y3.16%
Revenue Next 3Y1.47%
Revenue Next 5Y-1.01%
EBIT growth 1Y-11.87%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year31.2%
EBIT Next 3Y11.89%
EBIT Next 5Y7.65%
FCF growth 1Y8.64%
FCF growth 3Y-1.98%
FCF growth 5Y8.05%
OCF growth 1Y5.34%
OCF growth 3Y2.98%
OCF growth 5Y6.19%