IMOCAUTIOUS

Gross Margin

13.4%

Higher than 6% of Energy sector peers

Updated 118h ago

Sector Performance

6th percentile

IMO

13.4%

Sector Median

32.4%

Sector Avg

39.3%

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Deep Analysis

Gross margin measures the percentage of revenue left after deducting the direct costs of producing goods, so a 13.4% figure means Imperial Oil keeps only about 13 cents of every dollar of sales after covering production costs.

This is well below the sector median of 32.9% and places the company at the 6th percentile among its energy peers, indicating it ranks lower than 94% of competitors on profitability efficiency. The year-over-year change is not available, but the quarter-over-quarter decline of -33.7% shows a sharp drop from the prior quarter’s 20.2% margin. The combination of a very low absolute margin and a steep quarterly contraction suggests elevated risk, as cost pressures or pricing weakness may be eroding profitability. This metric directly supports the overall CAUTIOUS verdict, since both the level and the deteriorating trend point to heightened caution for investors.

Frequently Asked Questions

What does the Gross Margin tell investors about IMO?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does IMO's Gross Margin compare to its sector?

IMO's Gross Margin of 13.4% compares to a Energy sector median of 32.4%, placing it in the 6th percentile.

Who are IMO's closest peers by Gross Margin?

The closest Energy peers by Gross Margin include: NOG (32.9%), CVE (31.8%), LNG (31.7%), PXD (34.2%), RUN (30.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.