Imperial Oil Ltd. (IMO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Peyto Exploration & Development Corp.

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Suncor Energy, Inc.

Crescent Point Energy Corp.

NuVista Energy Ltd.

Athabasca Oil Corp.

Baytex Energy Corp.

Imperial Oil Ltd.

Paramount Resources Ltd.

Enerplus Corp.

Why is Imperial Oil Ltd. ?

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At CAD 1,432 MM has Grown at -43.02%
ROCE(HY) Lowest at 12.38%
DEBTORS TURNOVER RATIO(HY) Lowest at 6.76 times

With ROE of 12.84%, it has a expensive valuation with a 3.61 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 41.24%, its profits have fallen by -40.2%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Imperial Oil Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Imperial Oil Ltd.

41.24%

19.57

26.94%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.74%

EBIT Growth (5y)

34.28%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.55

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

1.77

Tax Ratio

23.16%

Dividend Payout Ratio

44.42%

Pledged Shares

Institutional Holding

27.95%

ROCE (avg)

20.73%

ROE (avg)

17.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.61

EV to EBIT

22.86

EV to EBITDA

13.50

EV to Capital Employed

3.35

EV to Sales

1.87

PEG Ratio

Dividend Yield

ROCE (Latest)

14.65%

ROE (Latest)

12.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 44.87%

DIVIDEND PER SHARE(HY)

Highest at CAD 6.76

NET SALES(Q)

Highest at CAD 12,068 MM

-24What is not working for the Company

NET PROFIT(HY)

At CAD 1,432 MM has Grown at -43.02%

ROCE(HY)

Lowest at 12.38%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.76 times

INTEREST COVERAGE RATIO(Q)

Lowest at 15,781.82

RAW MATERIAL COST(Y)

Grown by 17.48% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 14.01 %

INTEREST(Q)

Highest at CAD 11 MM

Here's what is working for Imperial Oil Ltd.

Dividend per share

Highest at CAD 6.76 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 44.87% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Sales

Highest at CAD 12,068 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Here's what is not working for Imperial Oil Ltd.

Net Profit

At CAD 1,432 MM has Grown at -43.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 11 MM has Grown at 175%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 15,781.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 6.76 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at CAD 11 MM

in the last five periods and Increased by 175% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at 14.01 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 17.48% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales