Imperial Oil Limited
Find Ratings ReportsIMPERIAL OIL LTD's gross profit margin for the third quarter of its fiscal year 2020 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, but still managed to outperform when compared to the average company in its subsector. IMPERIAL OIL LTD has weak liquidity. Currently, the Quick Ratio is 0.74 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 8.70% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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| Income Statement | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Net Sales ($mil) | 5467.0 | 8201.0 |
| EBITDA ($mil) | 435.0 | 980.0 |
| EBIT ($mil) | 26.0 | 561.0 |
| Net Income ($mil) | 3.0 | 424.0 |
| Balance Sheet | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 817.0 | 1531.0 |
| Total Assets ($mil) | 39382.0 | 41907.0 |
| Total Debt ($mil) | 5379.0 | 5469.0 |
| Equity ($mil) | 22792.0 | 24965.0 |
| Profitability | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Gross Profit Margin | 10.74 | 14.64 |
| EBITDA Margin | 7.95 | 11.94 |
| Operating Margin | 0.48 | 6.84 |
| Sales Turnover | 0.57 | 0.76 |
| Return on Assets | -1.11 | 6.63 |
| Return on Equity | -1.93 | 11.14 |
| Debt | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Current Ratio | 1.27 | 1.45 |
| Debt/Capital | 0.19 | 0.18 |
| Interest Expense | 19.0 | 32.0 |
| Interest Coverage | 1.37 | 17.53 |
| Share Data | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Shares outstanding (mil) | 734.08 | 752.95 |
| Div / share | 0.17 | 0.16 |
| EPS | 0.0 | 0.56 |
| Book value / share | 31.05 | 33.16 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 541694.0 | 490396.0 |
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 0.71 indicates a significant discount versus the S&P 500 average of 4.02 and a discount versus the subsector average of 2.16. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, IMPERIAL OIL LTD proves to trade at a discount to investment alternatives.
| Price/Earnings |
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Price/Cash Flow |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| IMO NM | Peers 56.81 | IMO 10.57 | Peers 7.15 | |||||||||||||||||||||
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Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. IMO's P/E is negative making this valuation measure meaningless. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. IMO is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
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Price to Earnings/Growth |
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| IMO NA | Peers 22.92 | IMO NA | Peers 0.88 | |||||||||||||||||||||
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Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
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| IMO 0.71 | Peers 2.16 | IMO -116.99 | Peers -201.48 | |||||||||||||||||||||
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Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. IMO is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. IMO is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
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| IMO 0.72 | Peers 1.66 | IMO -29.19 | Peers -25.24 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. IMO is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. IMO significantly trails its peers on the basis of sales growth. |
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