102.72 USD
-0.47 (-0.46%)
Taking everything into account, IMO scores 6 out of 10 in our fundamental rating. IMO was compared to 207 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
- In the past year IMO was profitable.
- IMO had a positive operating cash flow in the past year.
- Of the past 5 years IMO 4 years were profitable.
- 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 88.41% of its industry peers.
- The Return On Equity of IMO (16.89%) is better than 82.61% of its industry peers.
- The Return On Invested Capital of IMO (10.67%) is better than 85.99% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for IMO is significantly below the industry average of 21.94%.
- 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 has a Profit Margin (8.30%) which is comparable to the rest of the industry.
- 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 42.51% of its industry peers.
- IMO's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 22.56%, IMO is not doing good in the industry: 64.73% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of IMO has grown nicely.
| 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.
- IMO has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for IMO has been reduced compared to 5 years ago.
- Compared to 1 year ago, IMO has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.50 indicates that IMO is not in any danger for bankruptcy at the moment.
- IMO has a Altman-Z score of 4.50. This is amongst the best in the industry. IMO outperforms 87.44% 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 88.89% 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.
- The Debt to Equity ratio of IMO (0.17) is better than 75.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 4.5 |
ROIC/WACC1.42
WACC7.49%
2.3 Liquidity
- IMO has a Current Ratio of 1.47. 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 1.47, IMO is in the better half of the industry, outperforming 65.70% of the companies in the same industry.
- 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 Quick ratio of 1.17. This is comparable to the rest of the industry: IMO outperforms 59.42% 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.
- 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-8.02%
EPS Next 2Y-9.88%
EPS Next 3Y-2.81%
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
- The Price/Earnings ratio is 15.75, which indicates a correct valuation of IMO.
- Compared to the rest of the industry, the Price/Earnings ratio of IMO is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.82. IMO is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 19.14, the valuation of IMO can be described as rather expensive.
- IMO's Price/Forward Earnings is on the same level as the industry average.
- IMO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 19.14 |
4.2 Price Multiples
- IMO's Enterprise Value to EBITDA ratio is in line with the industry average.
- 64.25% 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 | 14.44 | ||
| EV/EBITDA | 9.56 |
4.3 Compensation for Growth
- The decent profitability rating of IMO may justify a higher PE ratio.
- IMO's earnings are expected to decrease with -2.81% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y-9.88%
EPS Next 3Y-2.81%
5. Dividend
5.1 Amount
- IMO has a Yearly Dividend Yield of 2.10%.
- IMO's Dividend Yield is comparable with the industry average which is at 3.73.
- IMO's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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 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 Years20
Div Non Decr Years20
5.3 Sustainability
- IMO pays out 33.92% of its income as dividend. This is a 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-9.88%
EPS Next 3Y-2.81%
IMPERIAL OIL LTD / IMO FAQ
Can you provide the ChartMill fundamental rating for IMPERIAL OIL LTD?
ChartMill assigns a fundamental rating of 6 / 10 to IMO.
Can you provide the valuation status for IMPERIAL OIL LTD?
ChartMill assigns a valuation rating of 4 / 10 to IMPERIAL OIL LTD (IMO). This can be considered as Fairly Valued.
Can you provide the profitability details for IMPERIAL OIL LTD?
IMPERIAL OIL LTD (IMO) has a profitability rating of 7 / 10.
What are the PE and PB ratios of IMPERIAL OIL LTD (IMO) stock?
The Price/Earnings (PE) ratio for IMPERIAL OIL LTD (IMO) is 15.75 and the Price/Book (PB) ratio is 2.92.
What is the earnings growth outlook for IMPERIAL OIL LTD?
The Earnings per Share (EPS) of IMPERIAL OIL LTD (IMO) is expected to decline by -8.02% in the next year.