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IMO

Imperial OilTSX:IMO Stock Report

Last Price

CA$50.60

Market Cap

CA$35.1b

7D

-0.7%

1Y

97.6%

Updated

23 Jan, 2022

Data

Company Financials +
IMO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends4/6

IMO Stock Overview

Imperial Oil Limited explores for, produces, and sells crude oil and natural gas in Canada.

Imperial Oil Competitors

Suncor Energy

TSX:SU

CA$49.6b

Cenovus Energy

TSX:CVE

CA$35.7b

Chevron

NYSE:CVX

US$244.6b

Shell

ENXTAM:RDSA

€164.8b

Price History & Performance

Summary of all time highs, changes and price drops for Imperial Oil
Historical stock prices
Current Share PriceCA$50.60
52 Week HighCA$52.95
52 Week LowCA$24.01
Beta2.13
1 Month Change12.35%
3 Month Change13.25%
1 Year Change97.58%
3 Year Change36.79%
5 Year Change16.22%
Change since IPO604.68%

Recent News & Updates

Jan 06
We Think Imperial Oil (TSE:IMO) Can Stay On Top Of Its Debt

We Think Imperial Oil (TSE:IMO) Can Stay On Top Of Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Oct 21
Imperial Oil Limited's (TSE:IMO) Intrinsic Value Is Potentially 37% Above Its Share Price

Imperial Oil Limited's (TSE:IMO) Intrinsic Value Is Potentially 37% Above Its Share Price

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Imperial Oil Limited...

Sep 25
Investors Will Want Imperial Oil's (TSE:IMO) Growth In ROCE To Persist

Investors Will Want Imperial Oil's (TSE:IMO) Growth In ROCE To Persist

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Aug 29
Imperial Oil (TSE:IMO) Seems To Use Debt Quite Sensibly

Imperial Oil (TSE:IMO) Seems To Use Debt Quite Sensibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

IMOCA Oil and GasCA Market
7D-0.7%-3.1%-2.9%
1Y97.6%51.8%15.9%

Return vs Industry: IMO exceeded the Canadian Oil and Gas industry which returned 51.8% over the past year.

Return vs Market: IMO exceeded the Canadian Market which returned 15.9% over the past year.

Price Volatility

Is IMO's price volatile compared to industry and market?
IMO volatility
IMO Average Weekly Movement4.9%
Oil and Gas Industry Average Movement9.8%
Market Average Movement9.9%
10% most volatile stocks in CA Market17.4%
10% least volatile stocks in CA Market3.7%

Stable Share Price: IMO is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: IMO's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18805,800Brad Corsonhttps://www.imperialoil.ca

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.

Imperial Oil Fundamentals Summary

How do Imperial Oil's earnings and revenue compare to its market cap?
IMO fundamental statistics
Market CapCA$35.05b
Earnings (TTM)CA$520.00m
Revenue (TTM)CA$31.23b

67.4x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IMO income statement (TTM)
RevenueCA$31.23b
Cost of RevenueCA$26.24b
Gross ProfitCA$4.99b
ExpensesCA$4.47b
EarningsCA$520.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 01, 2022

Earnings per share (EPS)0.75
Gross Margin15.99%
Net Profit Margin1.67%
Debt/Equity Ratio21.5%

How did IMO perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

136%

Payout Ratio

Valuation

Is Imperial Oil undervalued compared to its fair value and its price relative to the market?

30.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IMO (CA$50.6) is trading below our estimate of fair value (CA$72.39)

Significantly Below Fair Value: IMO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IMO is poor value based on its PE Ratio (67.4x) compared to the Canadian Oil and Gas industry average (7.9x).

PE vs Market: IMO is poor value based on its PE Ratio (67.4x) compared to the Canadian market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: IMO is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: IMO is good value based on its PB Ratio (1.7x) compared to the CA Oil and Gas industry average (2.1x).


Future Growth

How is Imperial Oil forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

42.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMO's forecast earnings growth (42% per year) is above the savings rate (1.6%).

Earnings vs Market: IMO's earnings (42% per year) are forecast to grow faster than the Canadian market (10.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IMO's revenue (10.6% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: IMO's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IMO's Return on Equity is forecast to be low in 3 years time (12.9%).


Past Performance

How has Imperial Oil performed over the past 5 years?

-31.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMO has a large one-off loss of CA$1.5B impacting its September 30 2021 financial results.

Growing Profit Margin: IMO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: IMO's earnings have declined by 31.9% per year over the past 5 years.

Accelerating Growth: IMO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: IMO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (159%).


Return on Equity

High ROE: IMO's Return on Equity (2.5%) is considered low.


Financial Health

How is Imperial Oil's financial position?


Financial Position Analysis

Short Term Liabilities: IMO's short term assets (CA$7.9B) exceed its short term liabilities (CA$5.9B).

Long Term Liabilities: IMO's short term assets (CA$7.9B) do not cover its long term liabilities (CA$13.7B).


Debt to Equity History and Analysis

Debt Level: IMO's net debt to equity ratio (12.7%) is considered satisfactory.

Reducing Debt: IMO's debt to equity ratio has reduced from 27.8% to 21.5% over the past 5 years.

Debt Coverage: IMO's debt is well covered by operating cash flow (91%).

Interest Coverage: IMO's interest payments on its debt are well covered by EBIT (147.3x coverage).


Balance Sheet


Dividend

What is Imperial Oil current dividend yield, its reliability and sustainability?

2.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IMO's dividend (2.13%) is higher than the bottom 25% of dividend payers in the Canadian market (1.61%).

High Dividend: IMO's dividend (2.13%) is low compared to the top 25% of dividend payers in the Canadian market (4.79%).


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 high payout ratio (136.3%), IMO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IMO's dividends in 3 years are forecast to be well covered by earnings (19.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Brad Corson (59 yo)

2.33yrs

Tenure

CA$4,499,800

Compensation

Mr. Bradley William Corson, also known as Brad, BS, has been Chairman & Chief Executive Officer at Imperial Oil Limited from January 1, 2020 and its President and Director since September 17, 2019. He had...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD3.59M) is below average for companies of similar size in the Canadian market ($USD5.93M).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: IMO's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: IMO's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IMO insiders have only sold shares 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 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
  • Implied Market Cap: CA$35.054b
  • Shares outstanding: 692.76m
  • Website: https://www.imperialoil.ca

Number of Employees


Location

  • Imperial Oil Limited
  • 505 Quarry Park Boulevard S.E.
  • Calgary
  • Alberta
  • T2C 5N1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 23:14
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.