IMPERIAL OIL LTD (IMO) Stock Fundamental Analysis
NYSEARCA:IMO - American Stock Exchange - CA4530384086 - Common Stock - Currency: USD
Overall IMO gets a fundamental rating of 5 out of 10. We evaluated IMO against 210 industry peers in the Oil, Gas & Consumable Fuels industry. IMO has an excellent financial health rating, but there are some minor concerns on its profitability. 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
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.
In the past 5 years IMO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.59%, IMO belongs to the best of the industry, outperforming 82.04% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.86%, IMO is in the better half of the industry, outperforming 75.24% of the companies in the same industry.
With a decent Return On Invested Capital value of 13.37%, IMO is doing good in the industry, outperforming 79.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.59% | ||
| ROE | 20.86% | ||
| ROIC | 13.37% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 9.51%, IMO perfoms like the industry average, outperforming 44.17% of the companies in the same industry.
IMO's Profit Margin has improved in the last couple of years.
IMO's Operating Margin of 12.05% is on the low side compared to the rest of the industry. IMO is outperformed by 63.11% of its industry peers.
In the last couple of years the Operating Margin of IMO has grown nicely.
IMO has a Gross Margin of 22.51%. This is in the lower half of the industry: IMO underperforms 66.50% of its industry peers.
IMO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.05% | ||
| PM (TTM) | 9.51% | ||
| GM | 22.51% |
OM growth 3YN/A
OM growth 5Y6.92%
PM growth 3YN/A
PM growth 5Y7.82%
GM growth 3Y15%
GM growth 5Y1.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IMO is creating some value.
IMO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
IMO has an Altman-Z score of 4.19. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.19, IMO belongs to the best of the industry, outperforming 86.41% of the companies in the same industry.
IMO has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.15, IMO belongs to the best of the industry, outperforming 85.44% of the companies in the same industry.
IMO has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
IMO has a better Debt to Equity ratio (0.17) than 70.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 4.19 |
ROIC/WACC1.76
WACC7.6%
2.3 Liquidity
IMO has a Current Ratio of 1.44. This is a normal value and indicates that IMO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.44, IMO is in line with its industry, outperforming 59.22% of the companies in the same industry.
IMO has a Quick Ratio of 1.08. 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 Quick ratio (1.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.70% over the past year.
The Earnings Per Share has been growing by 23.85% on average over the past years. This is a very strong growth
The Revenue has decreased by -0.53% in the past year.
The Revenue has been growing slightly by 7.72% on average over the past years.
EPS 1Y (TTM)2.7%
EPS 3YN/A
EPS 5Y23.85%
EPS Q2Q%-15.58%
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y31.53%
Revenue growth 5Y7.72%
Sales Q2Q%-4.75%
3.2 Future
IMO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.32% yearly.
Based on estimates for the next years, IMO will show a decrease in Revenue. The Revenue will decrease by -0.02% on average per year.
EPS Next Y1.5%
EPS Next 2Y-3.18%
EPS Next 3Y1.38%
EPS Next 5Y1.32%
Revenue Next Year4.92%
Revenue Next 2Y5.68%
Revenue Next 3Y5.55%
Revenue Next 5Y-0.02%
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
A Price/Earnings ratio of 10.89 indicates a reasonable valuation of IMO.
62.62% of the companies in the same industry are more expensive than IMO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.58. IMO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.46 indicates a correct valuation of IMO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IMO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 24.47. IMO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IMO.
The rest of the industry has a similar Price/Free Cash Flow ratio as IMO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.2 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IMO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of IMO may justify a higher PE ratio.
PEG (NY)7.27
PEG (5Y)0.46
EPS Next 2Y-3.18%
EPS Next 3Y1.38%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.33%.
IMO's Dividend Yield is comparable with the industry average which is at 6.55.
IMO's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
The dividend of IMO is nicely growing with an annual growth rate of 16.65%!
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)16.65%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
24.52% 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.
DP24.52%
EPS Next 2Y-3.18%
EPS Next 3Y1.38%
IMPERIAL OIL LTD
NYSEARCA:IMO (1/27/2025, 11:35:00 AM)
69.34
-0.96 (-1.37%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners24.99%
Inst Owner Change-0.08%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap35.54B
Analysts64.8
Price Target72.17 (4.08%)
Short Float %11.31%
Short Ratio30.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend1.35
Dividend Growth(5Y)16.65%
DP24.52%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.34%
Min EPS beat(2)9.59%
Max EPS beat(2)13.08%
EPS beat(4)4
Avg EPS beat(4)11.99%
Min EPS beat(4)8.56%
Max EPS beat(4)16.73%
EPS beat(8)8
Avg EPS beat(8)9.1%
EPS beat(12)10
Avg EPS beat(12)10.32%
EPS beat(16)10
Avg EPS beat(16)3.03%
Revenue beat(2)0
Avg Revenue beat(2)-18.2%
Min Revenue beat(2)-20.8%
Max Revenue beat(2)-15.6%
Revenue beat(4)0
Avg Revenue beat(4)-19.97%
Min Revenue beat(4)-30.26%
Max Revenue beat(4)-13.23%
Revenue beat(8)0
Avg Revenue beat(8)-18.16%
Revenue beat(12)1
Avg Revenue beat(12)-16.61%
Revenue beat(16)1
Avg Revenue beat(16)-14.89%
PT rev (1m)-2.59%
PT rev (3m)-1.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.37%
Revenue NY rev (1m)-1.74%
Revenue NY rev (3m)-2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 12.46 | ||
| P/S | 0.98 | ||
| P/FCF | 14.2 | ||
| P/OCF | 9.26 | ||
| P/B | 2.16 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)6.37
EY9.19%
EPS(NY)5.56
Fwd EY8.02%
FCF(TTM)4.88
FCFY7.04%
OCF(TTM)7.49
OCFY10.8%
SpS70.51
BVpS32.16
TBVpS31.94
PEG (NY)7.27
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.59% | ||
| ROE | 20.86% | ||
| ROCE | 17.34% | ||
| ROIC | 13.37% | ||
| ROICexc | 13.94% | ||
| ROICexgc | 14.01% | ||
| OM | 12.05% | ||
| PM (TTM) | 9.51% | ||
| GM | 22.51% | ||
| FCFM | 6.93% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y6.92%
PM growth 3YN/A
PM growth 5Y7.82%
GM growth 3Y15%
GM growth 5Y1.53%
F-Score6
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 98.51% | ||
| Cap/Sales | 3.69% | ||
| Interest Coverage | 115.65 | ||
| Cash Conversion | 67.21% | ||
| Profit Quality | 72.8% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 4.19 |
F-Score6
WACC7.6%
ROIC/WACC1.76
Cap/Depr(3y)76.7%
Cap/Depr(5y)71.8%
Cap/Sales(3y)3.01%
Cap/Sales(5y)3.55%
Profit Quality(3y)112.69%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.7%
EPS 3YN/A
EPS 5Y23.85%
EPS Q2Q%-15.58%
EPS Next Y1.5%
EPS Next 2Y-3.18%
EPS Next 3Y1.38%
EPS Next 5Y1.32%
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y31.53%
Revenue growth 5Y7.72%
Sales Q2Q%-4.75%
Revenue Next Year4.92%
Revenue Next 2Y5.68%
Revenue Next 3Y5.55%
Revenue Next 5Y-0.02%
EBIT growth 1Y-7.7%
EBIT growth 3YN/A
EBIT growth 5Y15.17%
EBIT Next Year52.8%
EBIT Next 3Y13.14%
EBIT Next 5Y9.46%
FCF growth 1Y-54.33%
FCF growth 3YN/A
FCF growth 5Y-4.32%
OCF growth 1Y-40.94%
OCF growth 3Y67.26%
OCF growth 5Y-0.98%