Imperial Oil (IMO) AI Stock Analysis

• Market Cap: $46.26B
• Dividend Yield: 3.01%
• Average Volume (3M): 885.61K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.02
• Revenue Growth: 1.08%
• EPS Growth: 6.38%
• Country: CA
• Employees: 5,100
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 9.03
• Shares Outstanding: 509,044,950
• 10 Day Avg. Volume: 905,421
• 30 Day Avg. Volume: 885,610
• PEG Ratio: 1.58
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.09
• Price to Cash Flow (P/CF): 9.00
• P/FCF Ratio: 6.10
• 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: C$101.34
• Price Target Upside: 11.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

Imperial Oil demonstrates a solid financial foundation with strong profitability and cash flow generation, supporting future growth. While technical indicators are stable, the stock's valuation appears attractive. The recent earnings call highlighted significant achievements, reinforcing confidence despite some operational challenges.

Imperial Oil Business Overview & Revenue Model

Company Description

Imperial Oil Limited (IMO) is a leading integrated oil company in Canada, operating in all phases of the petroleum industry. The company is involved in the exploration, production, and sale of crude oil and natural gas, as well as the refining, marketing, supply, and distribution of petroleum products. Additionally, Imperial Oil is engaged in petrochemical production and the sale of a wide range of petrochemical products. The company operates under the Esso and Mobil brands and is a major player in the Canadian energy sector.

How the Company Makes Money

Imperial Oil makes money through several key revenue streams. The company generates revenue from the exploration and production of crude oil and natural gas, which involves extracting these resources and selling them in global markets. Refining is another significant revenue source, where crude oil is processed into various petroleum products such as gasoline, diesel, and jet fuel. These refined products are then marketed and sold through a network of service stations, bulk terminals, and other distribution channels under the Esso and Mobil brands. Additionally, Imperial Oil derives income from its chemical business, which manufactures and sells petrochemical products used in various industries. Strategic partnerships and joint ventures, particularly with ExxonMobil, contribute to its operational efficiencies and market reach, further enhancing its profitability.

Imperial Oil Financial Statement Overview

Summary

Imperial Oil showcases strong profitability, with improved gross and net profit margins. The balance sheet is stable with low leverage and strong equity financing. Cash flow generation is robust, demonstrating efficient capital management. Despite moderate revenue growth, the company's financial metrics indicate resilience and growth potential.

Income Statement

Imperial Oil shows strong profitability with a consistent increase in gross and net profit margins over the years. The gross profit margin improved from 13.69% in 2023 to 14.45% in 2024. Net profit margin remains healthy at 9.81% in 2024. However, the EBIT margin is unavailable for 2024, creating a slight concern. Revenue growth from 2023 to 2024 is modest at 1.08%, but there is a strong recovery compared to the pandemic-driven decline observed in 2020.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.18 in 2024, indicating low leverage. However, the return on equity reduced slightly from 21.99% in 2023 to 20.42% in 2024. The equity ratio is robust at 54.66%, highlighting strong equity financing. Overall, the company maintains a solid balance sheet with manageable debt levels.

Cash Flow

Imperial Oil demonstrates strong cash flow generation, with free cash flow increasing significantly by 111.11% from 2023 to 2024, reflecting efficient capital expenditure management. The operating cash flow to net income ratio is 1.25 in 2024, indicating strong cash conversion. However, the free cash flow to net income ratio, although improved, suggests room for further optimization.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
48.82B	48.30B	57.23B	35.58B	20.55B
	Gross Profit
7.06B	6.62B	10.19B	4.11B	-1.57B
	EBIT
0.00	7.99B	9.29B	3.25B	-2.45B
	EBITDA
8.26B	8.35B	11.18B	5.23B	929.00M
	Net Income Common Stockholders
4.79B	4.89B	7.34B	2.48B	-1.86B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
979.00M	864.00M	3.75B	2.15B	771.00M
	Total Assets
42.94B	41.20B	43.52B	40.78B	38.03B
	Total Debt
4.16B	4.33B	4.31B	5.32B	5.28B
	Net Debt
3.18B	3.47B	557.00M	3.17B	4.51B
	Total Liabilities
19.46B	18.98B	21.11B	19.05B	16.61B
	Stockholders Equity
23.47B	22.22B	22.41B	21.73B	21.42B
Cash Flow		Free Cash Flow
4.11B	1.95B	8.96B	4.37B	-70.00M
	Operating Cash Flow
5.98B	3.73B	10.48B	5.48B	798.00M
	Investing Cash Flow
-1.82B	-1.69B	-618.00M	-1.01B	-802.00M
	Financing Cash Flow
-4.04B	-4.92B	-8.27B	-3.08B	-943.00M

Imperial Oil Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 90.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IMO, the sentiment is Negative. The current price of 90.88 is below the 20-day moving average (MA) of 98.95, below the 50-day MA of 98.06, and below the 200-day MA of 97.48, indicating a bearish trend. The MACD of 1.71 indicates Negative momentum. The RSI at 60.95 is Neutral, neither overbought nor oversold. The STOCH value of 63.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:IMO.

Imperial Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNQ	84 Outperform	$82.45B	13.67	15.47%	6.29%	-0.87%	-23.92%
IMO	77 Outperform	$46.26B	10.07	21.08%	3.01%	1.08%	6.38%
SU	77 Outperform	C$59.78B	10.23	13.82%	5.08%	3.25%	-25.69%
MEG	73 Outperform	C$5.10B	10.50	11.22%	1.67%	-8.92%	-5.46%
TOU	71 Outperform	C$22.08B	16.66	8.55%	2.67%	-8.29%	-30.52%
CVE	67 Neutral	C$30.86B	10.08	10.88%	4.90%	3.97%	-22.22%
Sector *	57 Neutral	$7.68B	4.29	-3.52%	6.80%	-0.14%	-64.60%

Imperial Oil Corporate Events

Imperial Oil Announces Leadership Change in Sustainability

Imperial Oil Limited announced the departure of Sherri Evers, Senior Vice President of Sustainability, Commercial Development and Product Solutions, who will assume the role of North America Lubes General Manager at Exxon Mobil Corporation, effective March 1, 2025. Evers’ leadership significantly contributed to Imperial’s strategic projects, including the Strathcona renewable diesel project and the Low Carbon Solutions business, highlighting her impact on reducing greenhouse gas emissions and forming the Pathways Alliance for oil sands operations.

Imperial Oil Unveils Ambitious 2025 Growth Strategy

Imperial Oil has released its 2025 corporate guidance, highlighting a strategy focused on maximizing asset value and pursuing high-value growth opportunities. The company plans to enhance operating performance with increased production and reduced costs at its Kearl and Cold Lake operations, supported by strategic investments in technology and expansion projects. Key initiatives for 2025 include the start-up of the Strathcona Renewable Diesel project and optimization efforts to improve logistics and processing flexibility. Imperial forecasts capital and exploration expenditures between $1.9 to $2.1 billion, with production and throughput expected to grow, leveraging its logistics network to move products to high-value markets and focusing on reducing emissions intensity.

Imperial Oil to Host 2025 Guidance Outlook Call

Imperial Oil Limited is set to host its 2025 corporate guidance outlook call on December 12, 2024, at 9:00 a.m. MT, accessible via webcast. Investors can expect insights from top executives, including CEO Brad Corson, and can catch the webcast replay for a full year on the company’s website. This event is crucial for those tracking Imperial’s strategy and market positioning.

Imperial Oil Declares Stable Fourth-Quarter Dividend

Imperial Oil Limited announced a fourth-quarter dividend of 60 cents per share, maintaining consistency with the previous quarter. This payout, scheduled for January 1, 2025, highlights the company’s long-standing commitment to financial stability and growth, having increased annual dividends for 30 consecutive years. Known for its leadership in Canada’s petroleum industry, Imperial continues to uphold high standards and innovation in energy resource development.

Imperial Oil to Host Q3 Earnings Call Nov 1

Imperial Oil Limited is set to host its third quarter earnings call on November 1, 2024, at 9:00 a.m. MT, following the release of its earnings. The call, led by CEO Brad Corson, will be accessible via webcast and will include remarks and a Q&A session with analysts. Interested parties can register for the live event online, and the webcast will be available for replay on the company’s website for one year.