Imperial Oil LimitedIMO
AMEX • Energy
$132.18
P/E
22.59
PEG
—
FCF Yield
—
Rev Growth YoY
-0.2% YoY
Gross Margin
20.2%
Health Score
8/10
D/E Ratio
0.20
Confidence
MEDIUM
Business Snapshot
Imperial Oil is an integrated oil and gas company operating across the Canadian energy value chain, with primary activities in upstream crude oil and natural gas production, downstream refining, and petroleum product marketing. The company holds a dominant position in its domestic market, benefitting from extensive refining capacity and retail networks that provide a competitive moat against smaller peers. With TTM revenue of $46.55B, Imperial Oil qualifies as a large-cap energy firm that is deeply embedded in Canada's energy infrastructure. A defining characteristic is its vertical integration and strong cash generation, which allows it to self-fund capital projects and return capital to shareholders even during periods of commodity price volatility.
Financial Health
Gross margin improved to 20.2% from 17.0% in the prior year, while net margin (TTM) stands at 6.2%, indicating better cost control at the gross level but still moderate overall profitability. The balance sheet is conservative, with a debt/equity ratio of just 0.2x and a current ratio of 1.27x, providing ample liquidity and financial flexibility...
Risk Assessment
- VALUATION — P/E of 22.59x is significantly above the sector average of 14x, leaving limited room for multiple expansion.
- REVENUE DECELERATION — Revenue fell 0.2% year-over-year, indicating a top-line contraction that undercuts the investment case.
- EARNINGS QUALITY — Net income declined 27.0% year-over-year, reflecting a sharp drop in profitability that may worry income-focused investors.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....