IMPERIAL OIL LTD (IMO) Stock Fundamental Analysis
USA - NYSEARCA:IMO - CA4530384086 - Common Stock
97.28 USD
-0.63 (-0.64%)
97.28 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to IMO. IMO was compared to 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 it does not seem to be growing.
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.
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
The Return On Assets of IMO (9.31%) is better than 85.71% of its industry peers.
IMO has a better Return On Equity (16.89%) than 79.52% of its industry peers.
IMO has a better Return On Invested Capital (10.67%) than 84.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IMO is significantly below the industry average of 21.66%.
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 of 8.30%. This is comparable to the rest of the industry: IMO outperforms 53.33% of its industry peers.
IMO's Profit Margin has improved in the last couple of years.
The Operating Margin of IMO (10.43%) is worse than 60.00% 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: 64.29% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IMO is creating value.
IMO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, IMO has less shares outstanding
The debt/assets ratio for IMO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.50 indicates that IMO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.50, IMO belongs to the top of the industry, outperforming 90.00% 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.
The Debt to FCF ratio of IMO (0.84) is better than 90.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.17, IMO is in the better half of the industry, outperforming 72.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 4.5 |
ROIC/WACC1.46
WACC7.32%
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.
IMO has a Current ratio of 1.47. This is in the better half of the industry: IMO outperforms 66.19% 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.
Looking at the Quick ratio, with a value of 1.17, IMO is in line with its industry, outperforming 59.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
IMO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.41%.
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 4.92% on average per year.
Based on estimates for the next years, IMO will show a decrease in Revenue. The Revenue will decrease by -0.87% on average per year.
EPS Next Y-9%
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
EPS Next 5Y4.92%
Revenue Next Year-2.82%
Revenue Next 2Y0.86%
Revenue Next 3Y1.2%
Revenue Next 5Y-0.87%
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 15.34, which indicates a correct valuation of IMO.
IMO's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of IMO to the average of the S&P500 Index (25.45), we can say IMO is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.81, which indicates a rather expensive current valuation of IMO.
IMO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of IMO to the average of the S&P500 Index (34.46), we can say IMO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 17.81 |
4.2 Price Multiples
IMO's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, IMO is valued a bit cheaper than the industry average as 62.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.36 | ||
| EV/EBITDA | 9.53 |
4.3 Compensation for Growth
IMO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.13%, IMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.90, IMO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, IMO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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 Years20
Div Non Decr Years20
5.3 Sustainability
33.92% 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.
DP33.92%
EPS Next 2Y-7.8%
EPS Next 3Y0.65%
97.28
-0.63 (-0.64%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners27.96%
Inst Owner Change0.43%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap48.83B
Revenue(TTM)48.22B
Net Income(TTM)4.00B
Analysts51.3
Price Target79.45 (-18.33%)
Short Float %11.69%
Short Ratio36.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend1.69
Dividend Growth(5Y)23.44%
DP33.92%
Div Incr Years20
Div Non Decr Years20
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)-17.53%
Revenue beat(16)1
Avg Revenue beat(16)-16.53%
PT rev (1m)0.82%
PT rev (3m)1.44%
EPS NQ rev (1m)15.17%
EPS NQ rev (3m)17.81%
EPS NY rev (1m)1.31%
EPS NY rev (3m)4.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.26%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-4.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 17.81 | ||
| P/S | 1.42 | ||
| P/FCF | 14.36 | ||
| P/OCF | 10.44 | ||
| P/B | 2.9 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 9.53 |
EPS(TTM)6.34
EY6.52%
EPS(NY)5.46
Fwd EY5.62%
FCF(TTM)6.78
FCFY6.96%
OCF(TTM)9.32
OCFY9.58%
SpS68.3
BVpS33.55
TBVpS33.31
PEG (NY)N/A
PEG (5Y)0.44
Graham Number69.18
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 | 4.5 |
F-Score7
WACC7.32%
ROIC/WACC1.46
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 5Y4.92%
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-0.87%
EBIT growth 1Y-19.46%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year31.2%
EBIT Next 3Y11.89%
EBIT Next 5Y7.8%
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 FAQ
Can you provide the ChartMill fundamental rating for IMPERIAL OIL LTD?
ChartMill assigns a fundamental rating of 6 / 10 to IMO.
What is the valuation status for IMO stock?
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 6 / 10.
Can you provide the expected EPS growth for IMO stock?
The Earnings per Share (EPS) of IMPERIAL OIL LTD (IMO) is expected to decline by -9% in the next year.
How sustainable is the dividend of IMPERIAL OIL LTD (IMO) stock?
The dividend rating of IMPERIAL OIL LTD (IMO) is 6 / 10 and the dividend payout ratio is 33.92%.