IMPERIAL OIL LTD (IMO.CA) Stock Fundamental Analysis
TSX:IMO - Toronto Stock Exchange - CA4530384086 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to IMO. IMO was compared to 210 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 correct valuation and a medium growth rate.
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.
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
With an excellent Return On Assets value of 11.13%, IMO belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
The Return On Equity of IMO (20.00%) is better than 93.33% of its industry peers.
The Return On Invested Capital of IMO (12.90%) is better than 94.29% 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 7.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 20% | ||
| ROIC | 12.9% |
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
With a decent Profit Margin value of 9.47%, IMO is doing good in the industry, outperforming 61.90% of the companies in the same industry.
In the last couple of years the Profit Margin of IMO has grown nicely.
With a Operating Margin value of 12.01%, IMO perfoms like the industry average, outperforming 54.29% of the companies in the same industry.
In the last couple of years the Operating Margin of IMO has grown nicely.
Looking at the Gross Margin, with a value of 22.73%, IMO is in line with its industry, outperforming 44.29% of the companies in the same industry.
IMO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.01% | ||
| PM (TTM) | 9.47% | ||
| GM | 22.73% |
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.
The debt/assets ratio for IMO has been reduced compared to a year ago.
2.2 Solvency
IMO has an Altman-Z score of 4.22. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
IMO's Altman-Z score of 4.22 is amongst the best of the industry. IMO outperforms 85.24% of its industry peers.
The Debt to FCF ratio of IMO is 0.86, which is an excellent value as it means it would take IMO, only 0.86 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.86, IMO belongs to the best of the industry, outperforming 90.95% of the companies in the same industry.
IMO has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of IMO (0.16) is better than 65.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 4.22 |
ROIC/WACC1.65
WACC7.83%
2.3 Liquidity
IMO has a Current Ratio of 1.48. 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 1.48 is fine compared to the rest of the industry. IMO outperforms 73.33% of its industry peers.
IMO has a Quick Ratio of 1.22. 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 1.22, IMO is doing good in the industry, outperforming 70.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
IMO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.36%, which is quite good.
The Earnings Per Share has been growing by 35.08% on average over the past years. This is a very strong growth
IMO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.34%.
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)8.36%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%13%
Revenue 1Y (TTM)1.34%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%1.91%
3.2 Future
The Earnings Per Share is expected to grow by 5.42% on average over the next years.
Based on estimates for the next years, IMO will show a decrease in Revenue. The Revenue will decrease by -1.39% on average per year.
EPS Next Y-13.05%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
EPS Next 5Y5.42%
Revenue Next Year4.54%
Revenue Next 2Y3.77%
Revenue Next 3Y1.4%
Revenue Next 5Y-1.39%
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
The Price/Earnings ratio is 11.84, which indicates a very decent valuation of IMO.
65.71% of the companies in the same industry are more expensive than IMO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of IMO to the average of the S&P500 Index (27.45), we can say IMO is valued rather cheaply.
A Price/Forward Earnings ratio of 13.63 indicates a correct valuation of IMO.
The rest of the industry has a similar Price/Forward Earnings ratio as IMO.
IMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 13.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IMO is valued a bit cheaper than 69.05% of the companies 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 69.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.06 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
The excellent profitability rating of IMO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.61%.
IMO's Dividend Yield is a higher than the industry average which is at 6.26.
Compared to an average S&P500 Dividend Yield of 2.38, IMO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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 25.95% 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.
DP25.95%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
TSX:IMO (7/4/2025, 7:00:00 PM)
110.5
+0.19 (+0.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners26.57%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap56.25B
Analysts66.09
Price Target101.05 (-8.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend2.37
Dividend Growth(5Y)23.44%
DP25.95%
Div Incr Years30
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.06%
Min EPS beat(2)10.95%
Max EPS beat(2)15.18%
EPS beat(4)4
Avg EPS beat(4)12.2%
Min EPS beat(4)9.59%
Max EPS beat(4)15.18%
EPS beat(8)8
Avg EPS beat(8)9.93%
EPS beat(12)12
Avg EPS beat(12)13.18%
EPS beat(16)12
Avg EPS beat(16)8.63%
Revenue beat(2)0
Avg Revenue beat(2)-18.54%
Min Revenue beat(2)-27.99%
Max Revenue beat(2)-9.09%
Revenue beat(4)0
Avg Revenue beat(4)-18.37%
Min Revenue beat(4)-27.99%
Max Revenue beat(4)-9.09%
Revenue beat(8)0
Avg Revenue beat(8)-19.18%
Revenue beat(12)0
Avg Revenue beat(12)-19.8%
Revenue beat(16)1
Avg Revenue beat(16)-15.55%
PT rev (1m)0.28%
PT rev (3m)-3.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 13.63 | ||
| P/S | 1.09 | ||
| P/FCF | 12.06 | ||
| P/OCF | 8.75 | ||
| P/B | 2.3 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 7.11 |
EPS(TTM)9.33
EY8.44%
EPS(NY)8.11
Fwd EY7.34%
FCF(TTM)9.16
FCFY8.29%
OCF(TTM)12.64
OCFY11.43%
SpS101.32
BVpS47.95
TBVpS47.63
PEG (NY)N/A
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 20% | ||
| ROCE | 16.8% | ||
| ROIC | 12.9% | ||
| ROICexc | 13.55% | ||
| ROICexgc | 13.61% | ||
| OM | 12.01% | ||
| PM (TTM) | 9.47% | ||
| GM | 22.73% | ||
| FCFM | 9.04% |
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 Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.86 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 87.35% | ||
| Cap/Sales | 3.43% | ||
| Interest Coverage | 162.95 | ||
| Cash Conversion | 78.29% | ||
| Profit Quality | 95.52% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 4.22 |
F-Score6
WACC7.83%
ROIC/WACC1.65
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)8.36%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%13%
EPS Next Y-13.05%
EPS Next 2Y-5.31%
EPS Next 3Y4.75%
EPS Next 5Y5.42%
Revenue 1Y (TTM)1.34%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%1.91%
Revenue Next Year4.54%
Revenue Next 2Y3.77%
Revenue Next 3Y1.4%
Revenue Next 5Y-1.39%
EBIT growth 1Y1.11%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year25.88%
EBIT Next 3Y11.55%
EBIT Next 5Y7.29%
FCF growth 1Y-23.49%
FCF growth 3Y-1.98%
FCF growth 5Y8.05%
OCF growth 1Y-16.97%
OCF growth 3Y2.98%
OCF growth 5Y6.19%