Loading...

Imperial Oil

TSX:IMO
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IMO
TSX
CA$28B
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

Imperial Oil Limited explores for, produces, and sells crude oil and natural gas in Canada. The last earnings update was 47 days ago. More info.


Add to Portfolio Compare Print
IMO Share Price and Events
7 Day Returns
1.9%
TSX:IMO
-0.2%
CA Oil and Gas
0.4%
CA Market
1 Year Returns
-14.4%
TSX:IMO
-14.5%
CA Oil and Gas
-3%
CA Market
IMO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Imperial Oil (IMO) 1.9% -2.5% -1.1% -14.4% -9% -34%
CA Oil and Gas -0.2% -5.8% -6.5% -14.5% -13.7% -39.4%
CA Market 0.4% -1% -0.6% -3% 10.9% 1.6%
1 Year Return vs Industry and Market
  • IMO underperformed the Market in Canada which returned -3% over the past year.
Price Volatility
IMO
Industry
5yr Volatility vs Market

IMO Value

 Is Imperial Oil undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Imperial Oil to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Imperial Oil.

TSX:IMO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:IMO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.911 (1 + (1- 26.5%) (19.43%))
1.027
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.027 * 5.96%)
8.07%

Discounted Cash Flow Calculation for TSX:IMO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Imperial Oil is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:IMO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.07%)
2019 2,545.00 Analyst x6 2,354.95
2020 2,532.57 Analyst x7 2,168.44
2021 2,604.00 Analyst x3 2,063.10
2022 2,385.50 Analyst x2 1,748.85
2023 2,728.00 Analyst x1 1,850.59
2024 2,771.36 Est @ 1.59% 1,739.61
2025 2,818.38 Est @ 1.7% 1,637.02
2026 2,868.32 Est @ 1.77% 1,541.61
2027 2,920.65 Est @ 1.82% 1,452.51
2028 2,975.00 Est @ 1.86% 1,369.05
Present value of next 10 years cash flows CA$17,925.74
TSX:IMO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$2,975.00 × (1 + 1.95%) ÷ (8.07% – 1.95%)
CA$49,530.23
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$49,530.23 ÷ (1 + 8.07%)10
CA$22,793.10
TSX:IMO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$17,925.74 + CA$22,793.10
CA$40,718.83
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$40,718.83 / 772.59
CA$52.7
TSX:IMO Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$52.70
Current discount Discount to share price of CA$36.66
= -1 x (CA$36.66 - CA$52.70) / CA$52.70
30.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Imperial Oil is available for.
Intrinsic value
30%
Share price is CA$36.66 vs Future cash flow value of CA$52.7
Current Discount Checks
For Imperial Oil to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Imperial Oil's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Imperial Oil's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Imperial Oil's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Imperial Oil's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:IMO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$2.63
TSX:IMO Share Price ** TSX (2019-06-18) in CAD CA$36.66
Canada Oil and Gas Industry PE Ratio Median Figure of 59 Publicly-Listed Oil and Gas Companies 12.42x
Canada Market PE Ratio Median Figure of 545 Publicly-Listed Companies 15.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Imperial Oil.

TSX:IMO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:IMO Share Price ÷ EPS (both in CAD)

= 36.66 ÷ 2.63

13.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Imperial Oil is overvalued based on earnings compared to the CA Oil and Gas industry average.
  • Imperial Oil is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Imperial Oil's expected growth come at a high price?
Raw Data
TSX:IMO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.93x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-1.1%per year
Canada Oil and Gas Industry PEG Ratio Median Figure of 36 Publicly-Listed Oil and Gas Companies 0.79x
Canada Market PEG Ratio Median Figure of 248 Publicly-Listed Companies 1.14x

*Line of best fit is calculated by linear regression .

TSX:IMO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.93x ÷ -1.1%

-13.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Imperial Oil earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Imperial Oil's assets?
Raw Data
TSX:IMO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$31.48
TSX:IMO Share Price * TSX (2019-06-18) in CAD CA$36.66
Canada Oil and Gas Industry PB Ratio Median Figure of 224 Publicly-Listed Oil and Gas Companies 0.78x
Canada Market PB Ratio Median Figure of 2,414 Publicly-Listed Companies 1.41x
TSX:IMO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:IMO Share Price ÷ Book Value per Share (both in CAD)

= 36.66 ÷ 31.48

1.16x

* Primary Listing of Imperial Oil.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Imperial Oil is overvalued based on assets compared to the CA Oil and Gas industry average.
X
Value checks
We assess Imperial Oil's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Imperial Oil has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

IMO Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Imperial Oil expected to grow at an attractive rate?
  • Imperial Oil's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Imperial Oil's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • Imperial Oil's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:IMO Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:IMO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -1.1%
TSX:IMO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 2.7%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 7.8%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.6%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:IMO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:IMO Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 38,805 5,437 2,212 3
2020-12-31 36,731 4,306 2,224 5
2019-12-31 37,565 4,107 2,308 5
TSX:IMO Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 33,365 3,940 2,091
2018-12-31 33,297 3,922 2,314
2018-09-30 33,500 4,131 1,324
2018-06-30 30,931 3,761 946
2018-03-31 28,391 3,394 673
2017-12-31 27,452 2,763 490
2017-09-30 26,493 2,434 2,071
2017-06-30 25,931 2,369 2,703
2017-03-31 25,177 2,320 2,599
2016-12-31 23,399 2,015 2,165
2016-09-30 22,545 1,669 823
2016-06-30 23,106 2,001 299

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Imperial Oil's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Imperial Oil's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:IMO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Imperial Oil Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:IMO Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.98 3.21 2.50 5.00
2020-12-31 2.75 4.56 1.82 10.00
2019-12-31 2.94 3.99 2.02 11.00
TSX:IMO Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 2.63
2018-12-31 2.87
2018-09-30 1.62
2018-06-30 1.14
2018-03-31 0.80
2017-12-31 0.58
2017-09-30 2.45
2017-06-30 3.19
2017-03-31 3.07
2016-12-31 2.55
2016-09-30 0.97
2016-06-30 0.35

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Imperial Oil is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Imperial Oil's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Imperial Oil has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

IMO Past Performance

  How has Imperial Oil performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Imperial Oil's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Imperial Oil's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Imperial Oil's 1-year earnings growth exceeds its 5-year average (210.7% vs -20%)
  • Imperial Oil's earnings growth has exceeded the CA Oil and Gas industry average in the past year (210.7% vs 11.1%).
Earnings and Revenue History
Imperial Oil's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Imperial Oil Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:IMO Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 33,365.00 2,091.00 1,087.00
2018-12-31 33,297.00 2,314.00 1,034.00
2018-09-30 33,500.00 1,324.00 1,121.00
2018-06-30 30,931.00 946.00 1,116.00
2018-03-31 28,391.00 673.00 1,159.00
2017-12-31 27,452.00 490.00 1,188.00
2017-09-30 26,493.00 2,071.00 1,075.00
2017-06-30 25,931.00 2,703.00 1,116.00
2017-03-31 25,177.00 2,599.00 1,194.00
2016-12-31 23,399.00 2,165.00 1,342.00
2016-09-30 22,545.00 823.00 1,222.00
2016-06-30 23,106.00 299.00 1,217.00
2016-03-31 24,181.00 600.00 1,196.00
2015-12-31 25,188.00 1,122.00 1,190.00
2015-09-30 26,970.00 1,691.00 1,120.00
2015-06-30 29,504.00 2,148.00 1,102.00
2015-03-31 31,635.00 3,260.00 1,127.00
2014-12-31 34,669.00 3,785.00 1,142.00
2014-09-30 34,942.00 4,170.00 1,211.00
2014-06-30 33,905.00 3,881.00 1,264.00
2014-03-31 32,453.00 2,976.00 1,224.00
2013-12-31 31,299.00 2,828.00 1,205.00
2013-09-30 30,890.00 2,848.00 1,146.00
2013-06-30 30,662.00 3,241.00 1,137.00
2013-03-31 30,210.00 3,549.00 1,129.00
2012-12-31 29,715.00 3,766.00 1,164.00
2012-09-30 29,862.00 3,695.00 1,250.00
2012-06-30 29,471.00 3,514.00 1,204.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Imperial Oil has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Imperial Oil used its assets more efficiently than the CA Oil and Gas industry average last year based on Return on Assets.
  • Imperial Oil has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Imperial Oil's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Imperial Oil has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

IMO Health

 How is Imperial Oil's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Imperial Oil's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Imperial Oil is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Imperial Oil's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Imperial Oil's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Imperial Oil Company Filings, last reported 2 months ago.

TSX:IMO Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 24,319.00 5,502.00 1,011.00
2018-12-31 24,489.00 5,207.00 988.00
2018-09-30 23,979.00 5,188.00 1,148.00
2018-06-30 23,765.00 5,194.00 873.00
2018-03-31 24,584.00 5,201.00 1,425.00
2017-12-31 24,435.00 5,234.00 1,195.00
2017-09-30 25,021.00 5,215.00 833.00
2017-06-30 25,000.00 5,222.00 623.00
2017-03-31 25,304.00 5,228.00 672.00
2016-12-31 25,021.00 5,261.00 391.00
2016-09-30 23,982.00 7,310.00 248.00
2016-06-30 23,072.00 8,908.00 195.00
2016-03-31 23,346.00 8,895.00 155.00
2015-12-31 23,425.00 8,544.00 203.00
2015-09-30 23,161.00 8,426.00 366.00
2015-06-30 22,759.00 7,984.00 28.00
2015-03-31 22,707.00 7,548.00 60.00
2014-12-31 22,530.00 6,913.00 215.00
2014-09-30 22,379.00 6,202.00 43.00
2014-06-30 21,519.00 6,069.00 171.00
2014-03-31 20,361.00 6,285.00 102.00
2013-12-31 19,524.00 6,294.00 272.00
2013-09-30 17,896.00 6,214.00 76.00
2013-06-30 17,298.00 5,072.00 542.00
2013-03-31 17,023.00 3,928.00 323.00
2012-12-31 16,377.00 1,654.00 482.00
2012-09-30 15,652.00 1,429.00 469.00
2012-06-30 14,664.00 1,205.00 996.00
  • Imperial Oil's level of debt (21.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (30.8% vs 21.5% today).
  • Debt is well covered by operating cash flow (75.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 82.8x coverage).
X
Financial health checks
We assess Imperial Oil's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Imperial Oil has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

IMO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.4%
Current annual income from Imperial Oil dividends. Estimated to be 2.33% next year.
If you bought CA$2,000 of Imperial Oil shares you are expected to receive CA$48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Imperial Oil's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.13%).
  • Imperial Oil's dividend is below the markets top 25% of dividend payers in Canada (5.77%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:IMO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 4.7%
Canada Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:IMO Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.04 5.00
2020-12-31 0.84 13.00
2019-12-31 0.80 15.00
TSX:IMO Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-04-26 0.880 2.362
2019-02-01 0.760 2.061
2018-11-02 0.760 2.027
2018-07-27 0.760 1.826
2018-04-27 0.760 1.791
2018-02-02 0.640 1.809
2017-10-27 0.640 1.622
2017-07-28 0.640 1.687
2017-04-28 0.640 1.675
2017-01-31 0.600 1.449
2016-10-28 0.600 1.326
2016-07-29 0.600 1.463
2016-04-29 0.600 1.468
2016-02-02 0.560 1.318
2015-10-30 0.560 1.323
2015-07-31 0.560 1.267
2015-04-30 0.520 1.075
2015-02-02 0.520 1.031
2014-10-31 0.520 1.039
2014-07-31 0.520 0.965
2014-04-24 0.520 0.943
2014-01-30 0.520 1.044
2013-10-31 0.520 1.134
2013-08-01 0.480 1.083
2013-04-25 0.480 1.173
2013-02-01 0.480 1.146
2012-11-01 0.480 1.103
2012-07-26 0.480 1.059
2012-04-26 0.480 1.124
2012-01-31 0.480 1.043
2011-10-27 0.440 1.004
2011-07-28 0.440 1.122
2011-04-28 0.440 0.968
2011-01-31 0.440 0.896
2010-11-01 0.440 1.118
2010-07-29 0.440 1.122
2010-04-28 0.440 1.088
2010-02-03 0.400 1.000
2009-10-29 0.400 0.995
2009-07-30 0.400 0.974

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Imperial Oil's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).
X
Income/ dividend checks
We assess Imperial Oil's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Imperial Oil afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Imperial Oil has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

IMO Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rich Kruger
COMPENSATION CA$7,870,053
AGE 58
TENURE AS CEO 6.3 years
CEO Bio

Mr. Richard M. Kruger, also known as Rick, has been the Chairman, Chief Executive Officer and President of Imperial Oil Ltd., a subsidiary of Exxon Mobil Corporation since March 1, 2013. Mr. Kruger served as the President of ExxonMobil Production Company, a subsidiary of Exxon Mobil Corp. from April 1, 2008 to March 1, 2013. He served as Vice President of Exxon Mobil Corporation from April 1, 2008 to March 1, 2013. He began his career with Exxon Company U.S.A. in 1981 in Houston, Texas and served various engineering, business planning and management assignments. Mr. Kruger served as Production Advisor of Exxon Corporation in Irving, Texas since 1994 and Technical Manager of Exxon Ventures since 1996, where he was responsible for Russia and the Caspian Sea. He served as Executive Vice President of ExxonMobil Production Company from October 1, 2006 to March 31, 2008. Mr. Kruger served as Vice President, Africa Deepwater of ExxonMobil Development Company since 1999, where he was responsible for deepwater oil and gas developments offshore Africa. He served as the Chairman and Chief Executive Officer of ExxonMobil Exploration and Production Malaysia since 2001. He served as Vice President for Asia Pacific/Middle East of ExxonMobil Production Company since 2003. He served as Vice President of the United States at ExxonMobil Production Company since 2005. He served as an Executive Vice President of ExxonMobil Production Company since 2006. Mr. Kruger holds Bachelors degree in Mechanical Engineering from the University of Minnesota and a Master's degree in Business Administration from the University of Houston.

CEO Compensation
  • Rich's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Rich's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Imperial Oil management team in years:

2.4
Average Tenure
53
Average Age
  • The tenure for the Imperial Oil management team is about average.
Management Team

Rich Kruger

TITLE
Chairman
COMPENSATION
CA$8M
AGE
58
TENURE
6.3 yrs

Dan Lyons

TITLE
Senior VP of Finance & Administration and Controller
COMPENSATION
CA$2M
AGE
55
TENURE
1.1 yrs

Peter Dinnick

TITLE
VP & General Counsel
COMPENSATION
CA$2M
AGE
53
TENURE
2.4 yrs

Theresa Redburn

TITLE
Senior Vice President of Commercial & Corporate Development
COMPENSATION
CA$2M
AGE
56
TENURE
2.4 yrs

John Whelan

TITLE
Senior Vice President of Upstream
COMPENSATION
CA$2M
AGE
52
TENURE
2.4 yrs

Dave Hughes

TITLE
Manager of Investor Relations

Denise Hughes

TITLE
Vice-President of Human Resources
AGE
50
TENURE
6.4 yrs

Glenn Peterson

TITLE
Treasurer
AGE
57
TENURE
1.9 yrs

Ian Laing

TITLE
Assistant General Counsel of Downstream & Corporate Departments and Corporate Secretary
AGE
44
TENURE
0.4 yrs

Jim Burgess

TITLE
Assistant Controller
AGE
43
TENURE
3.4 yrs
Board of Directors Tenure

Average tenure and age of the Imperial Oil board of directors in years:

6.3
Average Tenure
64
Average Age
  • The tenure for the Imperial Oil board of directors is about average.
Board of Directors

Jack Mintz

TITLE
Independent Director
COMPENSATION
CA$246K
AGE
66
TENURE
14.2 yrs

Rich Kruger

TITLE
Chairman
COMPENSATION
CA$8M
AGE
58
TENURE
6.3 yrs

Krystyna Hoeg

TITLE
Independent Director
COMPENSATION
CA$247K
AGE
68
TENURE
11.1 yrs

Dave Sutherland

TITLE
Independent Director
COMPENSATION
CA$243K
AGE
69
TENURE
9.2 yrs

David Cornhill

TITLE
Independent Director
COMPENSATION
CA$116K
AGE
64
TENURE
1.6 yrs

Miranda Hubbs

TITLE
Independent Director
COMPENSATION
CA$170K
AGE
52
TENURE
0.9 yrs

Dave Brownell

TITLE
Non-Independent Director
AGE
51
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
05. Oct 18 Sell Jonathan Wetmore Individual 25. Sep 18 25. Sep 18 -614 CA$42.55 CA$-26,126
X
Management checks
We assess Imperial Oil's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Imperial Oil has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

IMO News

Simply Wall St News

Imperial Oil Limited (TSE:IMO) Earns Among The Best Returns In Its Industry

Author Edwin Whiting says to be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' How Do You Calculate Return On Capital Employed? … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Imperial Oil: 0.075 = CA$2.8b ÷ (CA$42b - CA$5.0b) (Based on the trailing twelve months to March 2019.) So, Imperial Oil has an ROCE of 7.5%. … How Imperial Oil's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months.

Simply Wall St -

Is Imperial Oil Limited's (TSE:IMO) P/E Ratio Really That Good?

We'll look at Imperial Oil Limited's (TSE:IMO) P/E ratio and reflect on what it tells us about the company's share price. … View our latest analysis for Imperial Oil How Do I Calculate Imperial Oil's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Imperial Oil: P/E of 13.67 = CA$35.96 ÷ CA$2.63 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Are Investors Undervaluing Imperial Oil Limited (TSE:IMO) By 25%?

Today we will run through one way of estimating the intrinsic value of Imperial Oil Limited (TSE:IMO) by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (CA$, Millions) CA$2.48k CA$2.49k CA$2.60k CA$2.39k CA$2.73k CA$2.78k CA$2.83k CA$2.89k CA$2.95k CA$3.00k Growth Rate Estimate Source Analyst x5 Analyst x7 Analyst x3 Analyst x2 Analyst x1 Est @ 1.93% Est @ 1.93% Est @ 1.94% Est @ 1.94% Est @ 1.94% Present Value (CA$, Millions) Discounted @ 8.38% CA$2.28k CA$2.12k CA$2.04k CA$1.73k CA$1.82k CA$1.72k CA$1.61k CA$1.52k CA$1.43k CA$1.34k Present Value of 10-year Cash Flow (PVCF)= CA$17.62b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … TSX:IMO Intrinsic value, May 13th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Could Imperial Oil Limited (TSE:IMO) Have The Makings Of Another Dividend Aristocrat?

Could Imperial Oil Limited (TSE:IMO) be an attractive dividend share to own for the long haul? … A 2.3% yield is nothing to get excited about, but investors probably think the long payment history suggests Imperial Oil has some staying power. … Click the interactive chart for our full dividend analysis

Simply Wall St -

Is Imperial Oil Limited (TSE:IMO) A Financially Strong Company?

Imperial Oil Limited (TSE:IMO), a large-cap worth CA$31b, comes to mind for investors seeking a strong and reliable stock investment. … Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … Today I will analyse the latest financial data for IMO to determine is solvency and liquidity and whether the stock is a sound investment.

Simply Wall St -

Does Imperial Oil Limited's (TSE:IMO) CEO Salary Compare Well With Others?

First, this article will compare CEO compensation with compensation at other large companies. … How Does Rich Kruger's Compensation Compare With Similar Sized Companies. … Our data indicates that Imperial Oil Limited is worth CA$29b, and total annual CEO compensation is CA$7.9m.

Simply Wall St -

What Should Investors Know About Imperial Oil Limited's (TSE:IMO) Future?

After Imperial Oil Limited's (TSE:IMO) earnings announcement on 31 December 2018, … analyst consensus outlook seem … with profits predicted to drop by -11% next year.

Simply Wall St -

What Are Analysts Saying About Imperial Oil Limited's (TSE:IMO) Future?

Imperial Oil Limited's (TSE:IMO) released its most recent earnings update in December 2018, whicha … revealed

Simply Wall St -

Why You Should Like Imperial Oil Limited’s (TSE:IMO) ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Is Imperial Oil Limited (TSE:IMO) A High Quality Stock To Own?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every CA$1 worth of equity in the company, it was able to earn CA$0.097. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

IMO Company Info

Description

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, 2018, this segment had 404 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 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 2,200 Esso and Mobil-branded sites. 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.

Details
Name: Imperial Oil Limited
IMO
Exchange: TSX
Founded: 1880
CA$28,323,095,693
772,588,535
Website: http://www.imperialoil.ca
Address: Imperial Oil Limited
505 Quarry Park Boulevard S.E.,
Calgary,
Alberta, T2C 5N1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX IMO Common Shares The Toronto Stock Exchange CA CAD 02. Jan 1976
AMEX IMO Common Shares NYSE MKT LLC US USD 02. Jan 1976
DB IMP Common Shares Deutsche Boerse AG DE EUR 02. Jan 1976
Number of employees
Current staff
Staff numbers
5,700
Imperial Oil employees.
Industry
Integrated Oil and Gas
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:38
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.