Imperial Oil (TSX:IMO) - Share price, News & Analysis

IMO fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	5/6

IMO Stock Overview

Imperial Oil Limited engages in exploration, production, and sale of crude oil and natural gas in Canada.

Rewards

Trading at 23.9% below our estimate of its fair value

Became profitable this year

Pays a reliable dividend of 2.04%

Risk Analysis

Earnings are forecast to decline by an average of 1.5% per year for the next 3 years

Significant insider selling over the past 3 months

Imperial Oil Competitors

Suncor Energy

TSX:SU

CA$69.1b

Cenovus Energy

TSX:CVE

CA$54.1b

Chevron

NYSE:CVX

US$329.7b

Shell

LSE:SHEL

UK£174.6b

Price History & Performance

Summary of all time highs, changes and price drops for Imperial Oil
Historical stock prices
Current Share Price	CA$66.79
52 Week High	CA$69.55
52 Week Low	CA$30.64
Beta	2
1 Month Change	7.02%
3 Month Change	20.56%
1 Year Change	70.78%
3 Year Change	81.74%
5 Year Change	72.32%
Change since IPO	830.15%

Recent News & Updates

May 05

Analysts Just Made A Stunning Upgrade To Their Imperial Oil Limited (TSE:IMO) Forecasts

Shareholders in Imperial Oil Limited ( TSE:IMO ) may be thrilled to learn that the analysts have just delivered a major...

Shareholder Returns

	IMO	CA Oil and Gas	CA Market
7D	3.9%	2.9%	0.8%
1Y	70.8%	60.3%	4.9%

Return vs Industry: IMO exceeded the Canadian Oil and Gas industry which returned 60.3% over the past year.

Return vs Market: IMO exceeded the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is IMO's price volatile compared to industry and market?
IMO volatility
IMO Average Weekly Movement	4.6%
Oil and Gas Industry Average Movement	10.3%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	16.9%
10% least volatile stocks in CA Market	4.3%

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

Founded	Employees	CEO	Website
1880	5,400	Brad Corson	https://www.imperialoil.ca

Imperial Oil Limited engages in exploration, production, and sale of crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream and Chemical segments. 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 Cap	CA$44.69b
Earnings (TTM)	CA$3.26b
Revenue (TTM)	CA$43.17b

13.7x

P/E Ratio

1.0x

P/S Ratio

Is IMO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IMO income statement (TTM)
Revenue	CA$43.17b
Cost of Revenue	CA$36.13b
Gross Profit	CA$7.04b
Other Expenses	CA$3.78b
Earnings	CA$3.26b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)	4.87
Gross Margin	16.31%
Net Profit Margin	7.55%
Debt/Equity Ratio	20.5%

How did IMO perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

25%

Payout Ratio

Does IMO pay a reliable dividends?

See IMO dividend history and benchmarks

When do you need to buy IMO by to receive an upcoming dividend?
Imperial Oil dividend dates
Ex Dividend Date	Jun 01 2022
Dividend Pay Date	Jul 01 2022
Days until Ex dividend	9 days
Days until Dividend pay date	39 days

Does IMO pay a reliable dividends?

See IMO dividend history and benchmarks

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

23.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: IMO (CA$66.79) is trading below our estimate of fair value (CA$87.71)

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 (13.7x) compared to the Canadian Oil and Gas industry average (8.6x).

PE vs Market: IMO is poor value based on its PE Ratio (13.7x) compared to the Canadian market (11.5x).

Price to Earnings Growth Ratio

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's PB Ratio (2x) is in line with the CA Oil and Gas industry average.

Future Growth

How is Imperial Oil forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-1.5%

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 (-1.5% per year).

Earnings vs Market: IMO's earnings are forecast to decline over the next 3 years (-1.5% per year).

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

Revenue vs Market: IMO's revenue (4.9% per year) is forecast to grow slower than the Canadian market (6.4% per year).

High Growth Revenue: IMO's revenue (4.9% 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 (16.9%).

Past Performance

How has Imperial Oil performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-17.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IMO has high quality earnings.

Growing Profit Margin: IMO became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: IMO's earnings have declined by 17.1% 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 (185%).

Return on Equity

High ROE: IMO's Return on Equity (14.6%) is considered low.

Financial Health

How is Imperial Oil's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: IMO's short term assets (CA$10.7B) exceed its short term liabilities (CA$8.7B).

Long Term Liabilities: IMO's short term assets (CA$10.7B) do not cover its long term liabilities (CA$12.9B).

Debt to Equity History and Analysis

Debt Level: IMO's net debt to equity ratio (6.4%) is considered satisfactory.

Reducing Debt: IMO's debt to equity ratio has increased from 18.3% to 20.5% over the past 5 years.

Debt Coverage: IMO's debt is well covered by operating cash flow (138.9%).

Interest Coverage: IMO's interest payments on its debt are well covered by EBIT (530.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.04%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: IMO's dividend (2.04%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: IMO's dividend (2.04%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (24.5%), IMO's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17.8%), IMO's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.3yrs

Average management tenure

CEO

Brad Corson (59 yo)

2.67yrs

Tenure

CA$8,750,549

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 ($USD6.82M) is about average for companies of similar size in the Canadian market ($USD7.51M).

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 (2.3 years average tenure).

Board Members

Experienced Board: IMO's board of directors are considered experienced (4.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31