Imperial Oil (IMO) AI Stock Analysis

• Market Cap: C$58.56B
• Dividend Yield: 2.3%
• Average Volume (3M): 729.24K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.98
• Revenue Growth: -5.55%
• EPS Growth: -4.81%
• Country: CA
• Employees: 5,100
• Sector: Energy
• Sector Strength: 43
• Industry: Oil & Gas Integrated
• EPS (TTM): 1.86
• Shares Outstanding: 509,044,950
• 10 Day Avg. Volume: 905,286
• 30 Day Avg. Volume: 729,235
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$113.78
• Price Target Upside: -0.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 82 Outperform
• Price Target: C$133.00 ▲(15.90% Upside)

Imperial Oil's strong financial performance, fair valuation, and positive earnings call outcomes contribute to a high overall score. The company's effective cash management, strategic focus on renewable energy, and robust production metrics are significant strengths. Technical indicators support a moderately bullish outlook, enhancing the stock's attractiveness.

Positive Factors

Financial Performance

Imperial Oil delivered stronger-than-expected financial results, with upstream production expected to ramp up supported by optimization and start-up projects.

Operational Performance

Robust margin capture and structural advantages in Canada drove a significant beat in downstream net income.

Shareholder Returns

Imperial is well-positioned to repurchase shares aggressively, which could support additional share price upside.

Negative Factors

Operating Costs

Imperial has reduced operating costs at Kearl and Cold Lake by US$9/bbl and US$5/bbl, respectively, since 2022, and initiatives at both assets can yield further cost reductions.

Imperial Oil Business Overview & Revenue Model

Company Description

Imperial Oil Limited is one of Canada's largest integrated oil companies, primarily engaged in the exploration, production, refining, and marketing of petroleum products. Established in 1880, the company operates through various segments including upstream operations, which focus on oil and gas exploration and production, and downstream operations, which encompass refining and distribution of petroleum products. Imperial Oil also has a significant presence in the petrochemicals sector, providing a range of products used in manufacturing and industrial applications.

How the Company Makes Money

Imperial Oil generates revenue through multiple streams: the upstream segment contributes by extracting crude oil and natural gas, which is then sold at market prices. The downstream segment earns income from refining crude oil into petroleum products, such as gasoline, diesel, and jet fuel, and selling these products through its extensive retail network and commercial customers. Additionally, the company benefits from its petrochemical operations by producing and selling chemicals used in various industries. Strategic partnerships, including its joint ventures in oil sands and other resource extraction projects, enhance its production capabilities and reduce operational risks, further solidifying its revenue base. Economic factors such as oil prices, regulatory environments, and demand for energy products significantly influence the company's profitability.

Imperial Oil Financial Statement Overview

Summary

Imperial Oil shows strong financial performance with consistent profitability, a robust balance sheet, and effective cash management. The company maintains a solid equity position and low leverage, though monitoring debt levels is advised.

Income Statement

Imperial Oil has demonstrated strong profitability with a TTM gross profit margin of 14.60% and a net profit margin of 9.95%. The company has maintained a stable EBIT margin of 12.63% and an EBITDA margin of 17.07% in the TTM. Revenue grew by 0.44% from the previous annual period, indicating modest growth. Overall, consistent profitability and manageable growth underpin a robust income statement.

Balance Sheet

Imperial Oil's balance sheet reflects a solid equity position, with an equity ratio of 55.60%, indicating strong financial health. The debt-to-equity ratio is 0.17, showing conservative leverage levels. Return on Equity stands at 20.01%, showcasing efficient use of equity capital. The balance sheet is stable, though the slight increase in total debt warrants monitoring.

Cash Flow

The cash flow statement shows a strong free cash flow growth rate of 13.36% TTM, reflecting effective cash management. The operating cash flow to net income ratio is 1.32, and the free cash flow to net income ratio is 0.95, indicating good cash flow generation relative to earnings. Overall, the cash flow position is robust, supporting operational and strategic flexibility.

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
EBITDA	8.43B	8.35B	11.18B	5.23B	929.00M
Net Income	4.79B	4.89B	7.34B	2.48B	-1.86B
Balance Sheet
Total Assets	42.94B	41.20B	43.52B	40.78B	38.03B
Cash, Cash Equivalents and Short-Term Investments	979.00M	864.00M	3.75B	2.15B	771.00M
Total Debt	4.16B	4.33B	4.31B	5.32B	5.28B
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: Neutral
• Last Price: 114.75
• 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:IMO, the sentiment is Neutral. The current price of 114.75 is below the 20-day moving average (MA) of 115.13, above the 50-day MA of 111.02, and above the 200-day MA of 100.36, indicating a neutral trend. The MACD of 1.48 indicates Positive momentum. The RSI at 52.97 is Neutral, neither overbought nor oversold. The STOCH value of 29.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:IMO.

Imperial Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMO	82 Outperform	C$58.56B	12.67	18.80%	2.30%	-5.55%	-4.81%
CNQ	78 Outperform	$86.20B	10.42	20.18%	6.94%	3.42%	11.18%
SU	78 Outperform	$65.68B	11.80	12.46%	4.21%	-1.96%	-22.38%
TRP	77 Outperform	C$71.76B	16.92	15.25%	4.96%	-2.93%	23.33%
CVE	73 Outperform	$37.06B	14.09	8.83%	4.50%	-7.82%	-42.65%
PPL	67 Neutral	$28.56B	16.55	10.69%	5.54%	-3.86%	-9.35%
Sector *	56 Neutral	C$4.17B	2.02	16.25%	5.62%	10.63%	-50.60%

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.