IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:IMO - CA4530384086 - Common Stock
132.67 CAD
-7.03 (-5.03%)
IMO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 215 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.
1. Profitability
1.1 Basic Checks
IMO had positive earnings in the past year.
IMO had a positive operating cash flow in the past year.
Of the past 5 years IMO 4 years were profitable.
Each year in the past 5 years IMO had a positive operating cash flow.
1.2 Ratios
IMO's Return On Assets of 9.31% is amongst the best of the industry. IMO outperforms 94.42% 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 95.35% of the companies in the same industry.
IMO has a Return On Invested Capital of 10.67%. This is amongst the best in the industry. IMO outperforms 96.28% 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 6.53%.
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 (8.30%) which is in line with its industry peers.
In the last couple of years the Profit Margin of IMO has grown nicely.
IMO has a Operating Margin of 10.43%. This is comparable to the rest of the industry: IMO outperforms 54.88% of its industry peers.
In the last couple of years the Operating Margin of IMO has grown nicely.
Looking at the Gross Margin, with a value of 22.56%, IMO is in line with its industry, outperforming 49.77% 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
IMO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 4.45. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.45, IMO belongs to the top of the industry, outperforming 84.65% of the companies in the same industry.
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 94.42% 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.
With a decent Debt to Equity ratio value of 0.17, IMO is doing good in the industry, outperforming 67.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 4.45 |
ROIC/WACC1.45
WACC7.37%
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 71.63% 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 68.37% of its industry peers.
| 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.
IMO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.08% yearly.
Looking at the last year, IMO shows a decrease in Revenue. The Revenue has decreased by -6.96% in the last year.
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
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-9%
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
EPS Next 5Y6.11%
Revenue Next Year-2.82%
Revenue Next 2Y0.86%
Revenue Next 3Y1.2%
Revenue Next 5Y-2.2%
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 14.87, the valuation of IMO can be described as correct.
IMO's Price/Earnings ratio is a bit cheaper when compared to the industry. IMO is cheaper than 66.51% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.15. IMO is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.27, IMO is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IMO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of IMO to the average of the S&P500 Index (36.22), we can say IMO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.87 | ||
| Fwd PE | 17.27 |
4.2 Price Multiples
IMO's Enterprise Value to EBITDA is on the same level as the industry average.
69.77% 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 | 13.63 | ||
| EV/EBITDA | 9.32 |
4.3 Compensation for Growth
The excellent profitability rating of IMO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.06%.
Compared to an average industry Dividend Yield of 5.88, IMO pays a bit more dividend than its industry peers.
IMO's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
The dividend of IMO is nicely growing with an annual growth rate of 23.44%!
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-7.8%
EPS Next 3Y0.65%
TSX:IMO (12/2/2025, 7:00:00 PM)
132.67
-7.03 (-5.03%)
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 Cap65.21B
Revenue(TTM)48.22B
Net Income(TTM)4.00B
Analysts51.3
Price Target113.35 (-14.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
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)3.21%
PT rev (3m)4.7%
EPS NQ rev (1m)5.19%
EPS NQ rev (3m)15.68%
EPS NY rev (1m)1.31%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)-1.97%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.87 | ||
| Fwd PE | 17.27 | ||
| P/S | 1.35 | ||
| P/FCF | 13.63 | ||
| P/OCF | 9.91 | ||
| P/B | 2.75 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 9.32 |
EPS(TTM)8.92
EY6.72%
EPS(NY)7.68
Fwd EY5.79%
FCF(TTM)9.73
FCFY7.33%
OCF(TTM)13.38
OCFY10.09%
SpS98.09
BVpS48.18
TBVpS47.84
PEG (NY)N/A
PEG (5Y)0.42
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 | 4.45 |
F-Score7
WACC7.37%
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-9%
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
EPS Next 5Y6.11%
Revenue 1Y (TTM)-6.96%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-9.13%
Revenue Next Year-2.82%
Revenue Next 2Y0.86%
Revenue Next 3Y1.2%
Revenue Next 5Y-2.2%
EBIT growth 1Y-19.46%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year31.2%
EBIT Next 3Y11.89%
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 -9% 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 6 / 10 and the dividend payout ratio is 33.92%.