TSX:IMO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

0.5%

IMO

-0.5%

CA Oil and Gas

-0.2%

CA Market


1 Year Return

-25.9%

IMO

-12.8%

CA Oil and Gas

1.1%

CA Market

Return vs Industry: IMO underperformed the Canadian Oil and Gas industry which returned -12.8% over the past year.

Return vs Market: IMO underperformed the Canadian Market which returned 1.1% over the past year.


Shareholder returns

IMOIndustryMarket
7 Day0.5%-0.5%-0.2%
30 Day-11.9%-5.7%-2.9%
90 Day-10.8%-4.0%-1.6%
1 Year-24.2%-25.9%-8.9%-12.8%4.6%1.1%
3 Year-21.3%-25.6%-17.4%-25.7%13.1%3.1%
5 Year-31.6%-36.9%-22.3%-34.1%24.7%6.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: IMO (CA$32.46) is trading below our estimate of fair value (CA$84.94)

Significantly Undervalued: IMO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IMO is good value based on its PE Ratio (8.2x) compared to the Oil and Gas industry average (8.4x).

PE vs Market: IMO is good value based on its PE Ratio (8.2x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: IMO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IMO is overvalued based on its PB Ratio (1x) 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?

-5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMO's earnings are forecast to decline over the next 3 years (-5.5% per year).

Earnings vs Market: IMO's earnings are forecast to decline over the next 3 years (-5.5% per year).

High Growth Earnings: IMO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IMO's revenue (2.1% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: IMO's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: IMO's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has Imperial Oil performed over the past 5 years?

-14.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IMO's earnings have declined by -14.4% per year over the past 5 years.

Accelerating Growth: IMO's earnings growth over the past year (228.4%) exceeds its 5-year average (-14.4% per year).

Earnings vs Industry: IMO earnings growth over the past year (228.4%) exceeded the Oil and Gas industry 62.2%.


Return on Equity

High ROE: IMO's Return on Equity (12.4%) is considered low.


Return on Assets

ROA vs Industry: IMO has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: IMO has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Imperial Oil's financial position?


Financial Position Analysis

Short Term Liabilities: IMO's short term assets (CA$6.1B) exceeds its short term liabilities (CA$4.2B)

Long Term Liabilities: IMO's short term assets (6.1B) do not cover its long term liabilities (12.7B)


Debt to Equity History and Analysis

Debt Level: IMO's debt to equity ratio (18.5%) is considered satisfactory

Reducing Debt: IMO's debt to equity ratio has reduced from 27.5% to 18.5% over the past 5 years.

Debt Coverage: IMO's debt is well covered by operating cash flow (88.9%).

Interest Coverage: IMO's interest payments on its debt are well covered by EBIT (121.1x coverage).


Balance Sheet

Inventory Level: IMO has a high level of physical assets or inventory.

Debt Coverage by Assets: IMO's debt is covered by short term assets (assets are 1.315440x debt).


Next Steps

Dividend

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

2.71%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.0%markettop25%6.0%industryaverage4.9%forecastin3Years2.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IMO's dividend (2.71%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: IMO's dividend (2.71%) is low compared to the top 25% of dividend payers in the Canadian market (6.03%).

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 low payout ratio (19.9%), 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 well covered by earnings (21.8% payout ratio).


Next Steps

Management

What is the CEO of Imperial Oil's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Rich Kruger (59yo)

6.6yrs

Tenure

CA$7,870,053

Compensation

Mr. Richard M. Kruger, also known as Rick, has been the Chairman & Chief Executive Officer of Imperial Oil Ltd., a subsidiary of Exxon Mobil Corporation since March 1, 2013. Mr. Kruger served as the Presid ...


CEO Compensation Analysis

Compensation vs. Market: Rich's total compensation ($USD5.99M) is about average for companies of similar size in the Canadian market ($USD7.04M).

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


Management Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

Experienced Management: IMO's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

62yo

Average Age

Experienced Board: IMO's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Brad Corson (57yo)

    President & Director

    • Tenure: 0.08yrs
  • Rich Kruger (59yo)

    Chairman & CEO

    • Tenure: 6.6yrs
    • Compensation: CA$7.87m
  • Denise Hughes (51yo)

    Vice-President of Human Resources

    • Tenure: 6.8yrs
  • Theresa Redburn (57yo)

    Senior Vice President of Commercial & Corporate Development

    • Tenure: 2.8yrs
    • Compensation: CA$2.03m
  • Peter Dinnick (54yo)

    VP & General Counsel

    • Tenure: 2.8yrs
    • Compensation: CA$1.60m
  • John Whelan (53yo)

    Senior Vice President of Upstream

    • Tenure: 2.8yrs
    • Compensation: CA$2.07m
  • Glenn Peterson (58yo)

    Treasurer

    • Tenure: 2.3yrs
  • Dan Lyons (56yo)

    Senior VP of Finance & Administration and Controller

    • Tenure: 1.4yrs
    • Compensation: CA$2.10m
  • Dave Hughes

    Manager of Investor Relations

    • Tenure: 0yrs
  • Ian Laing (45yo)

    Assistant General Counsel of Downstream & Corporate Departments and Corporate Secretary

    • Tenure: 0.8yrs

Board Members

  • Dave Sutherland (70yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: CA$256.78k
  • Jack Mintz (67yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: CA$258.68k
  • Krystyna Hoeg (69yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: CA$261.70k
  • David Cornhill (65yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: CA$116.40k
  • Brad Corson (57yo)

    President & Director

    • Tenure: 0.08yrs
  • Miranda Hubbs (53yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: CA$170.29k
  • Rich Kruger (59yo)

    Chairman & CEO

    • Tenure: 6.6yrs
    • Compensation: CA$7.87m
  • Dave Brownell (52yo)

    Non-Independent Director

    • Tenure: 0.9yrs

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$24.648b
  • Shares outstanding: 759.34m
  • 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 pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:37
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.