# Imperial Oil Limited (IMO.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Energy / Oil, Gas & Consumable Fuels. Price C$177.99, market value C$86.1 billion.

## Valuation
- **P/E (trailing): 20.8×** (5-yr avg 10.6×, 3-yr avg 12.0×). Imperial Oil Limited trades at 20.8× trailing earnings, well above its own five-year average of 10.6×: investors are paying up relative to the company's past. The Energy median in the September 2026 study was 16.8×. Forward P/E is 15.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.5×**. Each dollar of revenue is priced at 1.5×.
- **Price / book: 3.5×**. The shares trade at 3.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 10.3×**. Enterprise value is 10.3× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.4%** (5-yr avg 12.0%). Free cash flow equals 6.4% of the market value, below its five-year average of 12.0%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 4.8%**. The inverse of the P/E: 4.8% of the price is earned each year.

## Profitability
- **Gross margin: 16.5%**. Imperial Oil Limited keeps 16.5% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 10.0%**. 10.0% of revenue is left after running the business.
- **Net margin: 6.9%**. 6.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 14.7%**. 14.7% on shareholders' equity is solid.
- **Return on invested capital: 16.7%**. Return on all capital, debt included, is 16.7%: comfortably above what that capital costs.
- **Return on assets: 10.3%**. Each dollar of assets produces 10.3% of profit.

## Growth
- **Revenue growth (1 yr): -8.6%** (3-yr -7.5%/yr, 5-yr 16.1%/yr). Revenue fell 8.6% over the last year, against 16.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -28.2%** (3-yr -17.3%/yr). Earnings per share fell 28.2%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -19.3%/yr**. Free cash flow has compounded at -19.3% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.20**. Debt is 0.20 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.4×**. It would take 0.4 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 221.0×**. Operating profit covers interest 221.0× over, a safe margin.
- **Current ratio: 1.27** (quick 0.83). Current assets cover the next year's liabilities 1.27 times.
- **Altman Z-score: 4.81**. A Z-score of 4.81 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.96%** (C$3.18 per share, trailing). Imperial Oil Limited yields 1.96%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 43%** (30% of free cash flow). 43% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 21**. 21 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 26.8%/yr** (1-yr 20.0%). The dividend has compounded at 26.8% a year over five years, doubling roughly every 3 years at that pace.

## Analyst view
- **Analyst consensus: underperform** (17 analysts). 17 analysts cover Imperial Oil Limited; the consensus is underperform, with an average price target of C$157.24 (-12% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 49.5%** (YTD 51.7%, 3-mo 4.9%). The shares are up 49.5% over twelve months including dividends.
- **From 52-week high: -7.2%** (55.1% above the low). Trading 7% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 44**. An RSI of 44 is neutral.
- **Beta (1 yr): 0.30** (volatility 28%). Beta of 0.30 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=IMO.TO · Page: https://foliofundamentals.com/stocks/imo.to

Not investment advice.