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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
14.7%
Sector: 6.7%
Dividend Analysis audit
INCOME
2.18%
Trailing Yield
$2.18
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
44%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, IMPERIAL OIL LTD (IMO) receives a "Hold" rating with a composite score of 51.0/100, ranked #151 out of 4446 stocks. Key factor scores: Quality 50/100, Value 44/100, Momentum 69/100. This is quantitative analysis only — not investment advice.
IMPERIAL OIL LTD (IMO) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does IMPERIAL OIL LTD Do?
Imperial Oil Limited engages in exploration, production, and sale of crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream and Chemical segments. The Upstream segment explores for, and produces crude oil, natural gas, synthetic oil, and bitumen. As of December 31, 2021, this segment had 386 million oil-equivalent barrels of proved undeveloped reserves. The Downstream segment is involved in the transportation and refining of crude oil, blending of refined products and the distribution, and marketing of refined products. It also transports crude oil to refineries by contracted pipelines, common carrier pipelines, and rail; maintains a distribution system to move petroleum products to market by pipeline, tanker, rail, and road transport; and owns and operates fuel terminals, natural gas liquids, and products pipelines in Alberta, Manitoba, and Ontario. In addition, this segment markets and supplies petroleum products to motoring public through approximately 2,400 Esso and Mobil-branded sites. Further, it sells petroleum products, including fuel, asphalt, and lubricants for industrial and transportation customers, independent marketers, and resellers, as well as other refiners serving the agriculture, residential heating, and commercial markets through branded fuel and lubricant resellers. The Chemical segment manufactures and markets various petrochemicals, benzene, aromatic and aliphatic solvents, plasticizer intermediates, and polyethylene resin. The company was incorporated in 1880 and is headquartered in Calgary, Canada. Imperial Oil Limited is a subsidiary of Exxon Mobil Corporation. IMPERIAL OIL LTD (IMO) is classified as a large-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Bradley W. Corson and employs approximately 5,300 people, headquartered in CALGARY, Alberta. With a market capitalization of $62.4B, IMO is one of the prominent companies in the Energy sector.
IMPERIAL OIL LTD (IMO) Stock Rating — Hold (April 2026)
As of April 2026, IMPERIAL OIL LTD receives a Hold rating with a composite score of 51.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.IMO ranks #151 out of 4,446 stocks in our coverage universe. Within the Energy sector, IMPERIAL OIL LTD ranks #25 of 128 stocks, placing it in the top quartile of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
IMO Stock Price and 52-Week Range
IMPERIAL OIL LTD (IMO) currently trades at $129.03. The stock gained $0.72 (0.6%) in the most recent trading session. The 52-week high for IMO is $125.94, which means the stock is currently trading 2.5% from its annual peak. The 52-week low is $58.76, putting the stock 119.6% above its annual trough. Recent trading volume was 24K shares, suggesting relatively thin trading activity.
Is IMO Overvalued or Undervalued? — Valuation Analysis
IMPERIAL OIL LTD (IMO) carries a value factor score of 44/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 20.22x, compared to the Energy sector average of 19.63x — a premium of 3%. The price-to-book ratio stands at 3.58x, versus the sector average of 1.64x. The price-to-sales ratio is 1.44x, compared to 0.47x for the average Energy stock. On an enterprise value basis, IMO trades at 13.75x EV/EBITDA, versus 3.50x for the sector.
Overall, IMO's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
IMPERIAL OIL LTD Profitability — ROE, Margins, and Quality Score
IMPERIAL OIL LTD (IMO) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 14.7%, compared to the Energy sector average of 6.7%, which is within a healthy range. Return on assets (ROA) comes in at 7.7% versus the sector average of 3.7%.
On a margin basis, IMPERIAL OIL LTD reports gross margins of 17.5%, compared to 52.7% for the sector. The operating margin is 9.1% (sector: 10.7%). Net profit margin stands at 7.0%, versus 6.4% for the average Energy stock. Revenue growth is running at -34.2% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
IMO Debt, Balance Sheet, and Financial Health
IMPERIAL OIL LTD has a debt-to-equity ratio of 90.0%, compared to the Energy sector average of 55.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.27x, suggesting adequate working capital coverage. Total debt on the balance sheet is $2.87B. Cash and equivalents stand at $833M.
IMO has a beta of 0.70, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for IMPERIAL OIL LTD is 82/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
IMPERIAL OIL LTD Revenue and Earnings History — Quarterly Trend
In TTM 2026, IMPERIAL OIL LTD reported revenue of $44.53B and earnings per share (EPS) of $0.84. Net income for the quarter was $3.17B. Gross margin was 17.5%. Operating income came in at $3.63B.
In Q4 2025, IMPERIAL OIL LTD reported revenue of $8.73B. Net income for the quarter was $390M. Gross margin was 17.5%.
In FY 2025, IMPERIAL OIL LTD reported revenue of $47.08B and earnings per share (EPS) of $6.50. Net income for the quarter was $3.27B. Operating income came in at $4.26B.
In Q3 2025, IMPERIAL OIL LTD reported revenue of $12.05B and earnings per share (EPS) of $1.07. Net income for the quarter was $539M. Operating income came in at $701M.
Over the past 8 quarters, IMPERIAL OIL LTD has demonstrated a growth trajectory, with revenue expanding from $16.95B to $44.53B. Investors analyzing IMO stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
IMO Dividend Yield and Income Analysis
IMPERIAL OIL LTD (IMO) currently pays a dividend yield of 2.2%. At this yield, a $10,000 investment in IMO stock would generate approximately $$218.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning IMO offers above-average income for its sector. The net margin of 7.0% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
IMO Momentum and Technical Analysis Profile
IMPERIAL OIL LTD (IMO) has a momentum factor score of 69/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 38/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 1/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
IMO vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing IMO against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full IMO vs S&P 500 (SPY) comparison to assess how IMPERIAL OIL LTD stacks up against the broader market across all factor dimensions.
IMO Next Earnings Date
No upcoming earnings date has been announced for IMPERIAL OIL LTD (IMO) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy IMO? — Investment Thesis Summary
IMPERIAL OIL LTD presents a balanced picture with arguments on both sides. Price momentum is positive at 69/100, suggesting the trend favors buyers. Low volatility (stability score 82/100) reduces downside risk.
In summary, IMPERIAL OIL LTD (IMO) earns a Hold rating with a composite score of 51.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on IMO stock.
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Institutional Research Dossier
IMPERIAL OIL LTD (IMO) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Imperial Oil Limited (IMO) receives a Hold rating, reflecting a balanced view of its strengths and weaknesses. While the company benefits from its integrated operations and affiliation with Exxon Mobil, its recent financial performance, particularly revenue decline and relatively high valuation compared to its sector, temper enthusiasm. The company's stability and momentum are positive factors, but concerns about its capital allocation and gross margin necessitate a cautious approach.
The primary takeaway is that IMO represents a stable, albeit not particularly exciting, investment within the energy sector. Its strong brand recognition and downstream presence provide a degree of resilience, but investors should be aware of the challenges related to revenue growth and valuation. The Hold rating acknowledges the company's inherent strengths while recognizing the need for improved financial performance to justify a more bullish outlook.
Business Strategy & Overview
Imperial Oil operates as an integrated oil company, engaging in upstream (exploration and production), downstream (refining, distribution, and marketing), and chemical segments. This integration provides a degree of diversification and allows the company to capture value across the entire oil and gas value chain. The upstream segment focuses on crude oil, natural gas, synthetic oil, and bitumen production, with a significant reserve base. The downstream segment refines crude oil, blends refined products, and distributes and markets these products through a network of approximately 2,400 Esso and Mobil-branded sites. The chemical segment manufactures and markets petrochemicals, solvents, and polyethylene resin.
The company's strategic positioning is heavily influenced by its relationship with Exxon Mobil, which provides access to technology, expertise, and capital. This affiliation allows Imperial Oil to pursue large-scale projects and maintain a competitive edge in the Canadian market. The company's focus on operational efficiency and cost management is also a key element of its strategy. Imperial Oil's downstream operations benefit from a well-established distribution network and strong brand recognition, which contribute to stable demand for its refined products.
Imperial Oil's product pipeline primarily revolves around optimizing existing assets and developing new resources within its established areas of operation. The company invests in technology and innovation to improve production efficiency, reduce costs, and enhance environmental performance. In the downstream segment, the focus is on upgrading refining capacity and expanding the distribution network to meet evolving market demands. The chemical segment aims to develop new products and expand its market share in petrochemicals and plastics.
The industry context for Imperial Oil is characterized by fluctuating commodity prices, increasing environmental regulations, and growing demand for cleaner energy sources. The company faces challenges related to managing costs, reducing emissions, and adapting to changing consumer preferences. However, the demand for oil and gas is expected to remain significant for the foreseeable future, providing opportunities for Imperial Oil to generate value from its existing assets and new projects. The company's integrated business model and strong financial position provide a solid foundation for navigating these challenges and capitalizing on opportunities in the energy sector.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-34.2%
Sector: -1.2%
+2820% VS SCTR
Economic Moat Analysis
Imperial Oil's economic moat can be characterized as Narrow. While the company possesses certain advantages, they are not strong enough to create a wide and sustainable competitive edge. The primary sources of its moat are brand recognition and integrated operations.
The Esso and Mobil brands, under which Imperial Oil operates its retail fuel stations, enjoy strong brand recognition in Canada. This brand equity provides a degree of customer loyalty and allows the company to command premium pricing in certain markets. However, brand recognition alone is not sufficient to create a wide moat, as consumers are often price-sensitive and willing to switch to competing brands if prices are significantly lower.
The company's integrated operations, encompassing upstream, downstream, and chemical segments, provide a degree of diversification and allow it to capture value across the entire oil and gas value chain. This integration can lead to cost efficiencies and reduce exposure to fluctuations in commodity prices. However, other integrated oil companies also possess similar advantages, limiting the uniqueness of Imperial Oil's business model.
Imperial Oil does not appear to possess significant cost advantages compared to its competitors. Its gross margin of 17.5% is significantly lower than the sector average of 55.1%, indicating that the company may face challenges in controlling costs or commanding premium pricing for its products. The company's scale and access to Exxon Mobil's technology may provide some cost advantages, but these are not substantial enough to create a wide moat.
The company's efficient scale is limited by the capital-intensive nature of the oil and gas industry. While Imperial Oil operates large-scale facilities, it faces competition from other companies with similar or larger operations. The company's intangible assets, such as patents and proprietary technology, may provide some competitive advantage, but these are not significant enough to create a wide moat. Overall, Imperial Oil's narrow moat reflects its strong brand recognition and integrated operations, but its lack of significant cost advantages and limited efficient scale prevent it from achieving a wider and more sustainable competitive advantage.
Financial Health & Profitability
Imperial Oil's financial health presents a mixed picture. While the company exhibits stability, certain aspects of its financial performance raise concerns. Revenue growth has been a significant challenge, with a TTM revenue decline of 34.2% compared to a sector average decline of only 1.7%. This suggests that Imperial Oil is facing headwinds that are more pronounced than those affecting its peers. The company's net income of $390.06 million on revenue of $8.73 billion translates to a net margin of 7.0%, which is slightly above the sector average of 6.3%.
The company's ROE of 14.7% is significantly higher than the sector average of 6.9%, indicating that Imperial Oil is generating strong returns on equity. However, this may be partially attributable to the company's leverage, as its debt-to-equity ratio of 90.00 is higher than the sector average of 55.00. While the company's debt is manageable, it increases the risk profile of the investment.
An examination of the quarterly financial history reveals a volatile revenue stream. While Q1 2025 showed revenue of $12.52B, the most recent quarter, Q4 2025, shows revenue of only $8.73B. Net income has also fluctuated, with a high of $1.29B in Q1 2025 and a low of $390.06M in Q4 2025. This volatility suggests that Imperial Oil's financial performance is sensitive to changes in commodity prices and market conditions.
The company's free cash flow generation has been inconsistent. The most recent quarter shows FCF of $555.41M, but historical data indicates significant fluctuations. The company's total cash of $832.85 million provides a buffer against short-term challenges, but its total debt of $2.87 billion represents a significant liability. The company's current ratio is not available, making it difficult to assess its short-term liquidity position.
Overall, Imperial Oil's financial health is characterized by strong returns on equity and a stable balance sheet, but its revenue decline and volatile cash flow generation raise concerns. The company's high debt-to-equity ratio also increases its risk profile. Investors should carefully monitor the company's financial performance and assess its ability to generate sustainable revenue growth and cash flow in the future.
Valuation Assessment
Imperial Oil's valuation metrics present a mixed picture, suggesting that the stock is fairly valued relative to its sector. The company's P/E ratio of 19.3x is in line with the sector average of 19.5x, indicating that the stock is not significantly overvalued or undervalued based on earnings. However, its EV/EBITDA ratio of 15.0x is significantly higher than the sector average of 3.5x, suggesting that the stock may be overvalued based on enterprise value relative to earnings before interest, taxes, depreciation, and amortization.
The company's free cash flow yield, calculated using a market cap of $61.23B and TTM FCF of $555.41M, is approximately 0.9%. This is a relatively low yield, suggesting that the stock may be overvalued based on free cash flow generation. However, it is important to note that free cash flow can be volatile in the oil and gas industry, and a single year's FCF may not be representative of the company's long-term potential.
Compared to its historical valuation, Imperial Oil's current P/E ratio is in line with its historical average, suggesting that the stock is not significantly overvalued or undervalued based on its own history. However, its EV/EBITDA ratio is higher than its historical average, indicating that the stock may be relatively more expensive than it has been in the past.
Considering the company's revenue decline of 34.2%, its current valuation appears somewhat rich. While the company's profitability and returns on equity are strong, its lack of revenue growth raises concerns about its ability to generate sustainable value for shareholders. Investors should carefully consider the company's growth prospects and its ability to improve its revenue performance before investing in the stock.
Overall, Imperial Oil's valuation is fair to slightly expensive, reflecting its strong profitability and returns on equity but also its lack of revenue growth and relatively high EV/EBITDA ratio. The Hold rating reflects this balanced view, acknowledging the company's strengths while recognizing the need for improved financial performance to justify a more bullish outlook.
Risk & Uncertainty
Imperial Oil faces several specific, idiosyncratic risks that could negatively impact its business and financial performance. One of the most significant risks is commodity price volatility. The company's revenue and profitability are highly sensitive to fluctuations in the prices of crude oil, natural gas, and refined products. A sustained decline in commodity prices could significantly reduce the company's earnings and cash flow.
Another significant risk is environmental regulation. The oil and gas industry is subject to increasingly stringent environmental regulations, which could increase the company's operating costs and limit its ability to develop new projects. The company faces risks related to carbon emissions, water usage, and waste disposal. Changes in environmental regulations could also impact the demand for the company's products, as consumers and businesses shift towards cleaner energy sources.
Competition is also a significant risk for Imperial Oil. The oil and gas industry is highly competitive, with numerous companies vying for market share. The company faces competition from both domestic and international players, including large integrated oil companies and smaller independent producers. Increased competition could put pressure on the company's prices and margins.
The company's reliance on its relationship with Exxon Mobil also presents a risk. While the affiliation with Exxon Mobil provides access to technology, expertise, and capital, it also creates a dependency on a single parent company. Changes in Exxon Mobil's strategy or financial condition could negatively impact Imperial Oil's business. Furthermore, any potential conflicts of interest between the two companies could create challenges for Imperial Oil.
Bulls Say / Bears Say
The Bull Case
BULL VIEWImperial Oil's integrated business model provides stability and allows it to capture value across the entire oil and gas value chain, mitigating the impact of commodity price volatility.
BULL VIEWThe company's strong brand recognition and extensive downstream network provide a competitive advantage and ensure stable demand for its refined products.
BULL VIEWImperial Oil's affiliation with Exxon Mobil provides access to cutting-edge technology and significant capital, enabling it to pursue large-scale projects and maintain a leading position in the Canadian energy market.
The Bear Case
BEAR VIEWImperial Oil's declining revenue and relatively high valuation compared to its sector peers suggest that the stock is overvalued and lacks significant upside potential.
BEAR VIEWThe company's high debt-to-equity ratio increases its financial risk and limits its flexibility to invest in new projects or return capital to shareholders.
BEAR VIEWIncreasing environmental regulations and the growing demand for cleaner energy sources pose a long-term threat to Imperial Oil's business model and could significantly reduce its future earnings.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score IMO and 4,400+ other equities.
IMPERIAL OIL LTD exhibits a 155% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
7.7%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
17.5%
Sector: 52.7%
Operating Margin
Core business profitability
9.1%
Sector: 10.7%
Net Margin
Bottom-line profitability
7.0%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta+15%
Income Projection audit
A $10,000 investment would generate approximately $218 annually in dividends at the current trailing rate.
