TSX:IMO

Stock Analysis Report

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Executive Summary

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


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

IMOIndustryMarket
7 Day0.3%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

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

NamePositionTenureCompensationOwnership
Bradley Corson
Chairman0.42yrCA$3.96mno data
Daniel Lyons
Senior VP of Finance & Administration and Controller2.08yrsCA$1.95mno data
Theresa Redburn
Senior Vice President of Commercial & Corporate Development3.42yrsCA$1.37m0.00046% CA$72.6k
J. Whelan
Senior Vice President of Upstream3.25yrsCA$1.53mno data
Dave Hughes
Manager of Investor Relationsno datano datano data
Peter Dinnick
VP & General Counsel3.42yrsCA$1.60mno data
Denise Hughes
Vice-President of Human Resources7.42yrsno data0.0036% CA$570.0k
Glenn Peterson
Treasurer2.92yrsno data0.00048% CA$75.8k
Ian Laing
Assistant General Counsel of Downstream & Corporate Departments and Corporate Secretary1.42yrsno data0.00054% CA$85.3k
Marilyn Henderson
Assistant Secretaryno datano datano data

3.1yrs

Average Tenure

55yo

Average Age

Experienced Management: IMO's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bradley Corson
Chairman0.42yrCA$3.96mno data
David Sutherland
Independent Nonemployee Director10.17yrsCA$241.95k0.0075% CA$1.2m
Jack Mintz
Independent Nonemployee Director15.17yrsCA$244.20k0.00014% CA$22.1k
Krystyna Hoeg
Independent Nonemployee Director12.08yrsCA$247.80kno data
David Cornhill
Independent Nonemployee Director2.58yrsCA$212.85k0.0017% CA$268.4k
Miranda Hubbs
Independent Nonemployee Director1.92yrsCA$211.29kno data
David Brownell
Non-Independent Director1.58yrsno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IMOAMEX (NYSE MKT LLC)YesCommon SharesUSUSDJan 1976
IMOTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1976
IMPDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 02:44
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.