Imperial Oil Limited
Imperial Oil Limited Fundamental Analysis
Imperial Oil Limited (IMO.TO) shows weak financial fundamentals with a PE ratio of 28.03, profit margin of 7.02%, and ROE of 14.75%. The company generates $45.9B in annual revenue with weak year-over-year growth of 1.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IMO.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakIMO.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateIMO.TO shows balanced valuation metrics.
Growth Score
WeakIMO.TO faces weak or negative growth trends.
Financial Health Score
ExcellentIMO.TO maintains a strong and stable balance sheet.
Profitability Score
WeakIMO.TO struggles to sustain strong margins.
Key Financial Metrics
Is IMO.TO Expensive or Cheap?
P/E Ratio
IMO.TO trades at 28.03 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IMO.TO's PEG of -1.57 indicates potential undervaluation.
Price to Book
The market values Imperial Oil Limited at 4.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.86 times EBITDA. This signals the market has high growth expectations.
How Well Does IMO.TO Make Money?
Net Profit Margin
For every $100 in sales, Imperial Oil Limited keeps $7.02 as profit after all expenses.
Operating Margin
Core operations generate 11.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.75 in profit for every $100 of shareholder equity.
ROA
Imperial Oil Limited generates $7.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Imperial Oil Limited produces operating cash flow of $6.62B, showing steady but balanced cash generation.
Free Cash Flow
Imperial Oil Limited generates strong free cash flow of $4.64B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.34 in free cash annually.
FCF Yield
IMO.TO converts 5.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How IMO.TO Stacks Against Its Sector Peers
| Metric | IMO.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.03 | 21.19 | Worse (Expensive) |
| ROE | 14.75% | 948.00% | Weak |
| Net Margin | 7.02% | -73259.00% (disorted) | Weak |
| Debt/Equity | 0.20 | -0.48 (disorted) | Distorted |
| Current Ratio | 1.27 | 6.31 | Neutral |
| ROA | 7.73% | -10913945.00% (disorted) | Weak |
IMO.TO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Imperial Oil Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
118.27%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
213.68%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
94.55%
Industry Style: Cyclical, Value, Commodity
High Growth