Imperial Metals (III) AI Stock Analysis

• Market Cap: C$2.12B
• Dividend Yield: N/A
• Average Volume (3M): 149.91K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.62
• Revenue Growth: 45.15%
• EPS Growth: 449.29%
• Country: CA
• Employees: 57
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 0.23
• Shares Outstanding: 178,104,720
• 10 Day Avg. Volume: 161,301
• 30 Day Avg. Volume: 149,905
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -10.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: C$14.50 ▲(60.40% Upside)

The score is primarily driven by strong financial performance (high profitability, solid balance sheet, and improving cash generation). Valuation is supportive with a relatively low P/E. Offsetting these positives, technical indicators show an overextended move (very high RSI/Stochastics) despite a strong uptrend, which raises near-term risk.

Positive Factors

High profitability margins

Sustained high gross, EBITDA and net margins provide a structural earnings cushion versus peers. Strong margins enhance internal cash generation, fund reinvestment and dividend capacity, and improve resilience to cyclical commodity price swings over the medium term.

Solid balance sheet and moderate leverage

Low leverage and a strong equity base reduce refinancing and solvency risk, giving management flexibility to fund development or weather downturns. Improved ROE signals efficient capital use, supporting sustainable returns and strategic optionality over the coming quarters.

Improving cash generation

Meaningful FCF growth and near parity of operating cash flow to net income indicate improving cash conversion. This trend supports capital expenditure, debt servicing and potential shareholder returns, strengthening the company’s financial durability through cycles.

Negative Factors

Modest revenue growth rate

Relatively low TTM revenue growth constrains the company’s ability to scale operations organically. Over several quarters, modest top-line expansion increases dependence on margin expansion or commodity price tailwinds to drive earnings growth and limit upside from volume gains.

Weak free cash flow conversion

A low FCF-to-net-income ratio indicates a sizeable portion of accounting profits isn't converting to free cash, reducing the company’s capacity to self-fund capex or distributions. Persistently weak conversion raises liquidity sensitivity during adverse price cycles.

Concentrated asset and commodity exposure

Reliance on a few major mines and on copper/gold markets concentrates operational and price risk. A prolonged outage, regulatory issue, or weak metal prices at key assets could materially impair production, revenues and cash flows over multiple quarters.

Imperial Metals Business Overview & Revenue Model

Company Description

Imperial Metals (III) is a Canadian mining company primarily engaged in the exploration, development, and production of mineral resources. The company operates in sectors such as mining and metallurgy, focusing on copper, gold, and silver mining. Imperial Metals is known for its flagship properties, which include the Red Chris and Mount Polley mines, where it extracts and processes valuable minerals to meet growing global demand.

How the Company Makes Money

Imperial Metals generates revenue primarily through the sale of mined metals, including copper and gold, which are sold to various markets, including industrial and investment sectors. The company implements a revenue model based on the extraction and processing of these minerals, with profits derived from the sale of concentrate and bullion. Key revenue streams include direct sales contracts with buyers, spot market sales, and potential partnerships with other mining companies or investors for joint ventures. Factors contributing to its earnings also include fluctuations in global commodity prices, operational efficiency, and the successful exploration of new mining sites.

Imperial Metals Financial Statement Overview

Summary

Overall fundamentals are strong: Income Statement score is high (85) with robust profitability (TTM net margin 28.1%, EBITDA margin 54.4%) and positive revenue growth (3.6%). Balance Sheet is solid (78) with moderate leverage (debt-to-equity 0.31) and improved ROE (21.1%). Cash Flow is improving but comparatively weaker (72) with positive FCF growth (25.3%) yet a modest FCF-to-net-income ratio (31.1%).

Income Statement

Imperial Metals has demonstrated strong revenue growth and profitability in the TTM period. The gross profit margin improved significantly to 44.7%, and the net profit margin reached 28.1%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also robust at 42.1% and 54.4%, respectively. The revenue growth rate of 3.6% in the TTM period suggests a positive growth trajectory, although it is lower than the previous year's growth rate.

Balance Sheet

The company's balance sheet shows a healthy debt-to-equity ratio of 0.31, indicating moderate leverage. The return on equity (ROE) improved to 21.1%, reflecting strong profitability relative to shareholder equity. The equity ratio stands at 55.2%, suggesting a solid equity base. Overall, the balance sheet reflects stability with a manageable level of debt.

Cash Flow

Imperial Metals has shown a significant improvement in cash flow metrics. The free cash flow growth rate is 25.3%, indicating better cash generation. The operating cash flow to net income ratio is nearly 1, suggesting efficient cash conversion. However, the free cash flow to net income ratio is 31.1%, which, while positive, indicates room for improvement in cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	653.10M	494.37M	344.45M	172.80M	133.59M	148.10M
Gross Profit	292.72M	161.22M	-13.46M	-28.72M	10.43M	20.63M
EBITDA	362.11M	215.11M	22.81M	-35.88M	14.94M	35.54M
Net Income	183.21M	106.26M	-36.72M	-75.97M	-26.07M	-4.89M
Balance Sheet
Total Assets	1.80B	1.66B	1.41B	1.30B	1.19B	1.09B
Cash, Cash Equivalents and Short-Term Investments	90.18M	58.12M	24.94M	27.54M	33.39M	34.15M
Total Debt	243.36M	372.85M	319.79M	197.79M	40.42M	2.42M
Total Liabilities	807.30M	834.25M	695.76M	563.97M	423.25M	362.84M
Stockholders Equity	993.05M	823.63M	716.23M	735.73M	763.10M	728.48M
Cash Flow
Free Cash Flow	111.80M	-26.84M	-126.28M	-231.26M	-87.18M	-49.76M
Operating Cash Flow	318.45M	155.41M	-3.81M	-86.76M	15.02M	23.84M
Investing Cash Flow	-176.59M	-161.07M	-125.33M	-127.82M	-102.91M	-77.14M
Financing Cash Flow	-97.41M	37.62M	126.56M	208.27M	87.21M	-1.50M

Imperial Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:III, the sentiment is Positive. The current price of 9.04 is below the 20-day moving average (MA) of 11.88, below the 50-day MA of 9.74, and above the 200-day MA of 6.21, indicating a neutral trend. The MACD of 0.80 indicates Positive momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 33.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:III.

Imperial Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
III	74 Outperform	C$2.12B	10.51	20.90%	―	45.15%	449.29%
ARG	72 Outperform	C$899.28M	32.71	18.67%	4.11%	10.41%	-0.23%
ASCU	62 Neutral	C$1.16B	-85.61	-6.09%	―	―	22.26%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FDY	54 Neutral	C$806.69M	-25.39	-48.15%	―	―	-10.32%
MARI	52 Neutral	C$1.43B	-40.25	-15.90%	―	―	-104.52%
LA	52 Neutral	C$516.58M	-115.20	4.21%	―	―	-41.70%

Imperial Metals Corporate Events

Imperial Metals Hits High-Grade Copper-Gold-Silver Zone in Mount Polley Drilling

Imperial Metals reported encouraging initial results from its 2025 Phase 2 diamond drill program at the Mount Polley mine, with the first hole intersecting 11.0 metres grading 4.43% copper, 1.53 g/t gold and 41.7 g/t silver beneath the previously mined Wight Pit. The hole, which also cut several additional higher-grade sections, confirms the presence of a high-grade zone in the Green zone adjacent to the Martel underground resource and supports the company’s strategy of extending known mineralization at depth using new targeting techniques. The higher silver-to-copper ratios encountered are consistent with mineralization patterns in the northeast quadrant of the property, and Imperial plans further drilling in 2026 to better define the underground potential at Mount Polley, which could enhance the mine’s resource base and longer-term production profile.

The most recent analyst rating on (TSE:III) stock is a Hold with a C$13.00 price target. To see the full list of analyst forecasts on Imperial Metals stock, see the TSE:III Stock Forecast page.

Imperial Metals Reports Positive 2025 Drilling Results at Huckleberry Mine

Imperial Metals Corporation has announced the successful results of its 2025 diamond drilling program at the Huckleberry mine in British Columbia, which intersected copper, molybdenum, silver, and gold mineralization. The program focused on an underexplored area southwest of the Main Zone pit, and the results will be integrated into mine planning to enhance resource estimates. The exploration at Whiting Creek, part of the Huckleberry project, also showed promising copper and molybdenum mineralization, with the system remaining open for further exploration. These developments could potentially impact the company’s operational strategies and industry positioning by expanding its resource base and exploration targets.

The most recent analyst rating on (TSE:III) stock is a Buy with a C$8.00 price target. To see the full list of analyst forecasts on Imperial Metals stock, see the TSE:III Stock Forecast page.