IMPERIAL OIL LTD (IMO) Stock Fundamental Analysis
NYSEARCA:IMO - NYSE Arca - CA4530384086 - Common Stock - Currency: USD
Taking everything into account, IMO scores 6 out of 10 in our fundamental rating. 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 correct valuation and a medium growth rate.
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.
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 11.16%, IMO belongs to the best of the industry, outperforming 81.77% of the companies in the same industry.
IMO has a Return On Equity of 20.41%. This is in the better half of the industry: IMO outperforms 75.37% of its industry peers.
The Return On Invested Capital of IMO (13.05%) is better than 80.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 20.41% | ||
| ROIC | 13.05% |
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
IMO has a Profit Margin (9.33%) which is in line with its industry peers.
IMO's Profit Margin has improved in the last couple of years.
IMO has a worse Operating Margin (11.89%) than 63.05% of its industry peers.
In the last couple of years the Operating Margin of IMO has grown nicely.
The Gross Margin of IMO (22.54%) is worse than 66.50% of its industry peers.
IMO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.89% | ||
| PM (TTM) | 9.33% | ||
| GM | 22.54% |
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 just above the Cost of Capital (WACC), which means it 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 4.01. This indicates that IMO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IMO (4.01) is better than 85.71% of its industry peers.
The Debt to FCF ratio of IMO is 0.97, which is an excellent value as it means it would take IMO, only 0.97 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.97, IMO belongs to the top of the industry, outperforming 88.18% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that IMO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.17, IMO is doing good in the industry, outperforming 69.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 4.01 |
ROIC/WACC1.65
WACC7.93%
2.3 Liquidity
A Current Ratio of 1.33 indicates that IMO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.33, IMO is in line with its industry, outperforming 57.64% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that IMO should not have too much problems paying its short term obligations.
IMO's Quick ratio of 1.10 is in line compared to the rest of the industry. IMO outperforms 54.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
IMO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.23%.
IMO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.08% yearly.
The Revenue has been growing slightly by 1.30% in the past 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)6.23%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-4.05%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-3.83%
3.2 Future
Based on estimates for the next years, IMO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.70% on average per year.
IMO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.30% yearly.
EPS Next Y-7.14%
EPS Next 2Y-3.34%
EPS Next 3Y10.79%
EPS Next 5Y12.7%
Revenue Next Year6.75%
Revenue Next 2Y4.11%
Revenue Next 3Y-2.35%
Revenue Next 5Y-1.3%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
With a Price/Earnings ratio of 10.56, the valuation of IMO can be described as very reasonable.
Based on the Price/Earnings ratio, IMO is valued a bit cheaper than the industry average as 63.55% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.75. IMO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.38 indicates a reasonable valuation of IMO.
IMO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.44. IMO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
IMO's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IMO indicates a somewhat cheap valuation: IMO is cheaper than 61.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.82 | ||
| EV/EBITDA | 6.53 |
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)0.3
EPS Next 2Y-3.34%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
IMO has a Yearly Dividend Yield of 2.95%. Purely for dividend investing, there may be better candidates out there.
IMO's Dividend Yield is comparable with the industry average which is at 6.95.
Compared to an average S&P500 Dividend Yield of 2.30, IMO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
The dividend of IMO is nicely growing with an annual growth rate of 16.65%!
IMO has been paying a dividend for at least 10 years, so it has 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)16.65%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
IMO pays out 25.85% 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.
DP25.85%
EPS Next 2Y-3.34%
EPS Next 3Y10.79%
66.23
-1.61 (-2.37%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners26.05%
Inst Owner Change0.32%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap33.71B
Analysts63.33
Price Target72.22 (9.04%)
Short Float %10.7%
Short Ratio27.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend0.93
Dividend Growth(5Y)16.65%
DP25.85%
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)10.95%
Max EPS beat(2)13.08%
EPS beat(4)4
Avg EPS beat(4)10.55%
Min EPS beat(4)8.56%
Max EPS beat(4)13.08%
EPS beat(8)8
Avg EPS beat(8)9.15%
EPS beat(12)11
Avg EPS beat(12)11.46%
EPS beat(16)11
Avg EPS beat(16)7.62%
Revenue beat(2)0
Avg Revenue beat(2)-24.4%
Min Revenue beat(2)-27.99%
Max Revenue beat(2)-20.8%
Revenue beat(4)0
Avg Revenue beat(4)-23.66%
Min Revenue beat(4)-30.26%
Max Revenue beat(4)-15.6%
Revenue beat(8)0
Avg Revenue beat(8)-20.35%
Revenue beat(12)0
Avg Revenue beat(12)-19.62%
Revenue beat(16)1
Avg Revenue beat(16)-15.91%
PT rev (1m)0%
PT rev (3m)-2.95%
EPS NQ rev (1m)3.44%
EPS NQ rev (3m)24.49%
EPS NY rev (1m)6.47%
EPS NY rev (3m)5.23%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)51.61%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 11.38 | ||
| P/S | 0.95 | ||
| P/FCF | 11.82 | ||
| P/OCF | 8.13 | ||
| P/B | 2.07 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 6.53 |
EPS(TTM)6.27
EY9.47%
EPS(NY)5.82
Fwd EY8.79%
FCF(TTM)5.6
FCFY8.46%
OCF(TTM)8.14
OCFY12.3%
SpS69.94
BVpS31.96
TBVpS31.74
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 20.41% | ||
| ROCE | 17% | ||
| ROIC | 13.05% | ||
| ROICexc | 13.41% | ||
| ROICexgc | 13.48% | ||
| OM | 11.89% | ||
| PM (TTM) | 9.33% | ||
| GM | 22.54% | ||
| FCFM | 8.01% |
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 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 Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.97 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 94.15% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | 145.41 | ||
| Cash Conversion | 73.93% | ||
| Profit Quality | 85.89% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 4.01 |
F-Score7
WACC7.93%
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)6.23%
EPS 3Y35.05%
EPS 5Y35.08%
EPS Q2Q%-4.05%
EPS Next Y-7.14%
EPS Next 2Y-3.34%
EPS Next 3Y10.79%
EPS Next 5Y12.7%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y11.04%
Revenue growth 5Y8.6%
Sales Q2Q%-3.83%
Revenue Next Year6.75%
Revenue Next 2Y4.11%
Revenue Next 3Y-2.35%
Revenue Next 5Y-1.3%
EBIT growth 1Y-1.04%
EBIT growth 3Y23.34%
EBIT growth 5Y24.52%
EBIT Next Year28.35%
EBIT Next 3Y10.7%
EBIT Next 5Y9.32%
FCF growth 1Y111.08%
FCF growth 3Y-1.98%
FCF growth 5Y8.05%
OCF growth 1Y60.18%
OCF growth 3Y2.98%
OCF growth 5Y6.19%