Imperial Oil (IMO) AI Stock Analysis

• Market Cap: $65.08B
• Dividend Yield: 2.22%
• Average Volume (3M): 964.29K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 1.18
• Revenue Growth: -6.18%
• EPS Growth: -14.06%
• Country: CA
• Employees: 5,100
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 2.17
• Shares Outstanding: 496,861,020
• 10 Day Avg. Volume: 1,002,764
• 30 Day Avg. Volume: 964,293
• PEG Ratio: 1.54
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 11.40
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 7.22
• Enterprise Value/Ebitda: 8.11
• 1Y Price Target: $110.22
• Price Target Upside: -18.16% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 9
• EPS Forecast (FY): 8.07
• Revenue Forecast (FY): $50.07B

• Rating: 74 Outperform
• Price Target: C$143.00 ▲(6.18% Upside)

Imperial Oil's overall stock score reflects its strong financial performance and positive earnings call, which highlight robust operational achievements and strategic plans for future growth. The technical analysis and valuation suggest moderate market positioning, while the absence of significant corporate events keeps the focus on core financial metrics.

Positive Factors

Operational Efficiency

Improved operational efficiency at Kearl reduces production costs, enhancing profitability and competitive positioning in the long term.

Record Production

Achieving record production levels at Kearl demonstrates strong operational capabilities and supports sustained revenue generation.

Strong Downstream Utilization

High downstream utilization indicates effective asset management and maximizes output, contributing to stable revenue streams.

Negative Factors

Revenue Decline

Ongoing revenue decline could signal difficulties in market demand or pricing power, impacting long-term growth prospects.

Restructuring Charges

Significant restructuring charges may strain financial resources and reflect underlying operational inefficiencies needing correction.

Impairment Charge

The impairment charge indicates asset devaluation, potentially affecting balance sheet strength and future capital allocation.

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 demonstrates strong financial health with robust profitability, stable leverage, and effective cash flow management. While recent revenue and free cash flow growth rates have faced challenges, the company's margins and return on equity remain impressive. The overall financial position is solid, with potential for growth if revenue generation improves.

Income Statement

Imperial Oil's income statement reflects strong profitability with a consistent gross profit margin around 14-15% and a net profit margin close to 10% in the TTM. Despite a slight revenue decline recently, the company has maintained solid EBIT and EBITDA margins, indicating efficient cost management. However, the negative revenue growth rate in the TTM suggests potential challenges in revenue generation.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.17 in the TTM, indicating conservative leverage. The return on equity remains strong at over 20%, showcasing effective use of equity to generate profits. The equity ratio is stable, reflecting a solid capital structure. Overall, the balance sheet suggests financial stability and low risk.

Cash Flow

Cash flow analysis shows a slight decline in free cash flow growth in the TTM, but the company maintains a healthy operating cash flow to net income ratio of 0.91. The free cash flow to net income ratio is also strong at 0.73, indicating good cash generation relative to net income. Despite recent fluctuations, cash flow management remains effective.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.59B	51.51B	50.90B	59.51B	37.51B	22.28B
Gross Profit	9.15B	9.20B	9.22B	12.19B	6.09B	1.72B
EBITDA	8.15B	8.24B	8.27B	11.28B	5.23B	845.00M
Net Income	4.70B	4.79B	4.89B	7.34B	2.48B	-1.86B
Balance Sheet
Total Assets	44.18B	42.94B	41.20B	43.52B	40.78B	38.03B
Cash, Cash Equivalents and Short-Term Investments	2.39B	979.00M	864.00M	3.75B	2.15B	771.00M
Total Debt	4.15B	4.16B	4.33B	4.43B	5.42B	5.28B
Total Liabilities	19.18B	19.46B	18.98B	21.11B	19.05B	16.61B
Stockholders Equity	25.00B	23.47B	22.22B	22.41B	21.73B	21.42B
Cash Flow
Free Cash Flow	4.49B	4.11B	1.95B	8.96B	4.37B	-70.00M
Operating Cash Flow	6.27B	5.98B	3.73B	10.48B	5.48B	798.00M
Investing Cash Flow	-1.74B	-1.82B	-1.69B	-618.00M	-1.01B	-802.00M
Financing Cash Flow	-4.17B	-4.04B	-4.92B	-8.27B	-3.08B	-943.00M

Imperial Oil Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 134.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IMO, the sentiment is Positive. The current price of 134.68 is above the 20-day moving average (MA) of 125.83, above the 50-day MA of 125.95, and above the 200-day MA of 108.33, indicating a bullish trend. The MACD of 1.96 indicates Negative momentum. The RSI at 67.20 is Neutral, neither overbought nor oversold. The STOCH value of 96.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IMO.

Imperial Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNQ	80 Outperform	C$93.62B	14.13	16.17%	6.03%	8.06%	-10.64%
IMO	74 Outperform	$65.08B	16.74	16.52%	2.22%	-6.18%	-14.06%
SU	74 Outperform	$72.50B	13.97	11.41%	3.92%	-3.08%	-31.48%
TRP	72 Outperform	$76.19B	22.46	12.96%	4.50%	-3.98%	-33.45%
CVE	69 Neutral	$44.08B	14.16	10.65%	3.79%	-9.17%	-12.97%
PPL	67 Neutral	C$30.54B	18.74	10.22%	5.27%	2.81%	-14.92%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Imperial Oil Corporate Events

Imperial Oil Announces Q4 2025 Dividend Increase

On October 31, 2025, Imperial Oil Limited announced a quarterly cash dividend of 72 cents per share for the fourth quarter of 2025, payable on January 1, 2026, to shareholders of record as of December 3, 2025. This announcement reflects the company’s ongoing commitment to financial stability and shareholder returns, continuing a tradition of annual dividend increases for 31 consecutive years.

The most recent analyst rating on (TSE:IMO) stock is a Buy with a C$143.00 price target. To see the full list of analyst forecasts on Imperial Oil stock, see the TSE:IMO Stock Forecast page.

Imperial Oil Schedules Q3 Earnings Call for October

On October 15, 2025, Imperial Oil announced that it will hold its third quarter earnings call on October 31, 2025, at 9:00 a.m. MT, following the release of its third quarter earnings. The call will be hosted by John Whelan, the company’s chairman, president, and CEO, and Peter Shaw, vice-president of investor relations. This event is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (TSE:IMO) stock is a Sell with a C$110.00 price target. To see the full list of analyst forecasts on Imperial Oil stock, see the TSE:IMO Stock Forecast page.

Imperial Oil Announces Strategic Restructuring for Enhanced Efficiency and Growth

Imperial Oil has announced a restructuring plan aimed at enhancing its cash flow and delivering superior shareholder returns by centralizing corporate and technical activities in global business and technology centers. This move is expected to result in $150 million in annual expense savings by 2028 and involves a reduction in employee roles by approximately 20% by 2027. The restructuring leverages Imperial’s relationship with ExxonMobil to maximize asset value and improve productivity, positioning the company for long-term growth and industry-leading returns.

The most recent analyst rating on (TSE:IMO) stock is a Hold with a C$115.00 price target. To see the full list of analyst forecasts on Imperial Oil stock, see the TSE:IMO Stock Forecast page.

Imperial Oil Announces Board Changes with New Appointments

Imperial Oil announced the appointment of Tanya Bryja to its board of directors, effective September 16, 2025. Bryja, currently ExxonMobil’s Senior Vice President of Energy Products, brings over 27 years of experience to the role. Additionally, the company revealed that David Cornhill will not stand for re-election at the 2026 annual meeting due to reaching the mandatory retirement age, with Miranda Hubbs set to succeed him as Lead Director on October 1, 2025. These changes are part of an orderly transition plan for the board’s leadership.

The most recent analyst rating on (TSE:IMO) stock is a Buy with a C$130.00 price target. To see the full list of analyst forecasts on Imperial Oil stock, see the TSE:IMO Stock Forecast page.