Executive Summary
Imperial Oil Limited explores for, produces, and sells crude oil and natural gas in Canada.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Imperial Oil's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IMO's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
0.3%
IMO
1.5%
CA Oil and Gas
0.9%
CA Market
1 Year Return
-40.2%
IMO
-26.2%
CA Oil and Gas
-11.4%
CA Market
Return vs Industry: IMO underperformed the Canadian Oil and Gas industry which returned -27.8% over the past year.
Return vs Market: IMO underperformed the Canadian Market which returned -11.7% over the past year.
Shareholder returns
| IMO | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.3% | 1.5% | 0.9% |
| 30 Day | -1.4% | 5.7% | 4.5% |
| 90 Day | -27.7% | -20.0% | -9.3% |
| 1 Year | -38.9%-40.2% | -22.4%-26.2% | -8.4%-11.4% |
| 3 Year | -39.4%-42.9% | -27.5%-36.0% | 0.4%-8.9% |
| 5 Year | -51.1%-55.2% | -30.6%-41.9% | 16.9%-0.3% |
Price Volatility Vs. Market
How volatile is Imperial Oil's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Should Income Investors Look At Imperial Oil Limited (TSE:IMO) Before Its Ex-Dividend?2 weeks ago | Simply Wall St
These 4 Measures Indicate That Imperial Oil (TSE:IMO) Is Using Debt Extensively1 month ago | Simply Wall St
Should You Use Imperial Oil's (TSE:IMO) Statutory Earnings To Analyse It?Valuation
Is Imperial Oil undervalued compared to its fair value and its price relative to the market?
12.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IMO (CA$21.51) is trading below our estimate of fair value (CA$24.62)
Significantly Below Fair Value: IMO is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: IMO is good value based on its PE Ratio (9.4x) compared to the Oil and Gas industry average (11.2x).
PE vs Market: IMO is good value based on its PE Ratio (9.4x) compared to the Canadian market (12.8x).
Price to Earnings Growth Ratio
PEG Ratio: IMO is good value based on its PEG Ratio (0.1x)
Price to Book Ratio
PB vs Industry: IMO is overvalued based on its PB Ratio (0.7x) compared to the CA Oil and Gas industry average (0.6x).
Next Steps
Future Growth
How is Imperial Oil forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
67.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IMO's forecast earnings growth (67.3% per year) is above the savings rate (1.7%).
Earnings vs Market: IMO's earnings (67.3% per year) are forecast to grow faster than the Canadian market (23.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: IMO's revenue (7.6% per year) is forecast to grow faster than the Canadian market (6.3% per year).
High Growth Revenue: IMO's revenue (7.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IMO is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has Imperial Oil performed over the past 5 years?
5.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IMO has high quality earnings.
Growing Profit Margin: IMO's current net profit margins (5.3%) are lower than last year (6%).
Past Earnings Growth Analysis
Earnings Trend: IMO's earnings have grown by 5.6% per year over the past 5 years.
Accelerating Growth: IMO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: IMO had negative earnings growth (-18.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (-18.2%).
Return on Equity
High ROE: IMO's Return on Equity (7.3%) is considered low.
Next Steps
Financial Health
How is Imperial Oil's financial position?
Financial Position Analysis
Short Term Liabilities: IMO's short term assets (CA$4.7B) exceed its short term liabilities (CA$3.5B).
Long Term Liabilities: IMO's short term assets (CA$4.7B) do not cover its long term liabilities (CA$13.4B).
Debt to Equity History and Analysis
Debt Level: IMO's debt to equity ratio (19.8%) is considered satisfactory.
Reducing Debt: IMO's debt to equity ratio has reduced from 32.5% to 19.8% over the past 5 years.
Debt Coverage: IMO's debt is well covered by operating cash flow (82.3%).
Interest Coverage: IMO's interest payments on its debt are well covered by EBIT (49.1x coverage).
Balance Sheet
Next Steps
Dividend
What is Imperial Oil's current dividend yield, its reliability and sustainability?
4.09%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IMO's dividend (4.09%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).
High Dividend: IMO's dividend (4.09%) is low compared to the top 25% of dividend payers in the Canadian market (6.47%).
Stability and Growth of Payments
Stable Dividend: IMO's dividends per share have been stable in the past 10 years.
Growing Dividend: IMO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (38.6%), IMO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IMO's dividends in 3 years are forecast to be covered by earnings (50.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Brad Corson (57yo)
0.42
Tenure
CA$3,961,913
Compensation
Mr. Bradley William Corson, also known as Brad, BS, serves as Chairman & CEO at Imperial Oil Limited from January 1, 2020. He serves as President and Director at Imperial Oil Limited since September 17, 20 ...
CEO Compensation Analysis
Compensation vs Market: Brad's total compensation ($USD2.87M) is below average for companies of similar size in the Canadian market ($USD6.80M).
Compensation vs Earnings: Insufficient data to compare Brad's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 0.42yr | CA$3.96m | no data | |
| Senior VP of Finance & Administration and Controller | 2.08yrs | CA$1.95m | no data | |
| Senior Vice President of Commercial & Corporate Development | 3.42yrs | CA$1.37m | 0.00046% CA$72.6k | |
| Senior Vice President of Upstream | 3.25yrs | CA$1.53m | no data | |
| Manager of Investor Relations | no data | no data | no data | |
| VP & General Counsel | 3.42yrs | CA$1.60m | no data | |
| Vice-President of Human Resources | 7.42yrs | no data | 0.0036% CA$570.0k | |
| Treasurer | 2.92yrs | no data | 0.00048% CA$75.8k | |
| Assistant General Counsel of Downstream & Corporate Departments and Corporate Secretary | 1.42yrs | no data | 0.00054% CA$85.3k | |
| Assistant Secretary | no data | no data | no data |
3.1yrs
Average Tenure
55yo
Average Age
Experienced Management: IMO's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 0.42yr | CA$3.96m | no data | |
| Independent Nonemployee Director | 10.17yrs | CA$241.95k | 0.0075% CA$1.2m | |
| Independent Nonemployee Director | 15.17yrs | CA$244.20k | 0.00014% CA$22.1k | |
| Independent Nonemployee Director | 12.08yrs | CA$247.80k | no data | |
| Independent Nonemployee Director | 2.58yrs | CA$212.85k | 0.0017% CA$268.4k | |
| Independent Nonemployee Director | 1.92yrs | CA$211.29k | no data | |
| Non-Independent Director | 1.58yrs | no data | no data |
2.6yrs
Average Tenure
65yo
Average Age
Experienced Board: IMO's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: IMO insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Imperial Oil Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Imperial Oil Limited
- Ticker: IMO
- Exchange: TSX
- Founded: 1880
- Industry: Integrated Oil and Gas
- Sector: Energy
- Market Cap: CA$15.790b
- Shares outstanding: 734.08m
- Website: https://www.imperialoil.ca
Number of Employees
Location
- Imperial Oil Limited
- 505 Quarry Park Boulevard S.E.
- Calgary
- Alberta
- T2C 5N1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IMO | AMEX (NYSE MKT LLC) | Yes | Common Shares | US | USD | Jan 1976 |
| IMO | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jan 1976 |
| IMP | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1976 |
Biography
Imperial Oil Limited explores for, produces, and sells crude oil and natural gas in Canada. It operates through three segments: Upstream, Downstream, and Chemical. The Upstream segment explores for and produces crude oil, natural gas, synthetic oil, and bitumen. As of December 31, 2019, this segment had 397 million oil-equivalent barrels of proved undeveloped reserves. The Downstream segment is involved in the transportation and refining of crude oil, as well as blending, distribution, and marketing of refined products. It also transports crude oil to refineries by contracted pipelines, common carrier pipelines, and rail; maintains a distribution system to move petroleum products to market by pipeline, tanker, rail, and road transport; and owns and operates fuel terminals, natural gas liquids, and products pipelines in Alberta, Manitoba, and Ontario. In addition, this segment markets and supplies petroleum products to motoring public through approximately 2,300 Esso and Mobil-branded sites. Further, it sells petroleum products, including fuel, asphalt, and lubricants for industrial and transportation customers, independent marketers, and resellers, as well as other refiners serving the agriculture, residential heating, and commercial markets through branded fuel and lubricant resellers. The Chemical segment manufactures and markets various petrochemicals and polyethylene, such as benzene, aromatic, and aliphatic solvents; plasticizer intermediates; and polyethylene resins. The company was founded in 1880 and is headquartered in Calgary, Canada. Imperial Oil Limited is a subsidiary of Exxon Mobil Corporation.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/01 02:44 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.