Imperial Oil Limited (IMO) AI Stock Analysis

Imperial Oil Limited is an integrated Canadian energy company operating through three segments: Upstream, Downstream, and Chemical. The Upstream segment focuses on the exploration and development of crude oil, natural gas, synthetic oil, and bitumen, holding 386 million oil-equivalent barrels of proved undeveloped reserves as of December 31, 2021. The Downstream segment transports, refines, and markets crude oil and refined products across Alberta, Manitoba, and Ontario, managing approximately 2,400 Esso and Mobil-branded retail sites. Its Chemical segment manufactures and markets petrochemicals such as benzene, solvents, and polyethylene resin. It also pilots a lithium-extraction project in Alberta with E3 Metals Corp.

Over five years, revenue expanded at a CAGR of 16.1% from FY2020 to FY2025. Annual revenue reached $59.51B in FY2022 before dropping to $50.90B in FY2023 and ending at $47.08B in FY2025, which saw an 8.6% decline. Net income moved from $2.48B in FY2021 to a peak of $7.34B in FY2022, and settled at $3.27B in FY2025 with a net margin of 6.9%. Operating margin contracted to 9.0% in FY2025 from 15.8% in FY2024. For the latest quarter ended June 30, 2026, performance rebounded with quarterly revenue growth of 42.6% year-over-year and quarterly earnings growth of 143.0%.

As of June 30, 2026, Imperial Oil held $2.84B in cash and short-term investments against $4.13B in total debt, leaving net debt at $1.29B. The company recorded a current ratio of 1.38 and a debt-to-equity ratio of 0.17 on shareholders' equity of $24.54B. In FY2025, operating cash flow stood at $6.71B and free cash flow reached $4.70B. Capital allocation in FY2025 included $2.00B in capital expenditures, $3.23B in share buybacks, and $1.40B in dividends paid, contributing to a 29.7% reduction in share count over five years.

Imperial Oil trades at a trailing P/E of 21.6x and a forward P/E of 14.3x, both above the median of its US-listed Energy peers at 15.0x and 12.7x, respectively. Its enterprise value to EBITDA ratio of 10.6x also trades above the peer median of 8.0x, while its price-to-sales ratio of 1.3x is below the peer median of 1.8x. Over the past year, the stock returned 61.5%, outperforming the S&P 500 (SPY) return of 16.8%. Over five years, the stock returned 337.1% compared to 83.0% for the index.

Imperial Oil pays a quarterly dividend with an annual forward payout of $2.44, translating to a dividend yield of 1.83%. The payout ratio stands at 25.9%, and the company has paid dividends for 43 consecutive years. Its 5-year annualized dividend growth rate is 25.5%, with the last ex-dividend date on September 4, 2026.

Analyst consensus includes 3 Strong Buy, 2 Buy, 10 Hold, 2 Sell, and 1 Strong Sell ratings. The mean price target is $107.52, representing a 19.7% decrease from the last close of $133.92. For FY2026, analysts estimate EPS of $15.45 on revenue of $60.92B, followed by an EPS estimate of $13.43 on revenue of $63.51B in FY2027. Imperial Oil beat EPS expectations in 3 of the last 4 quarters, with the next earnings release scheduled for October 30, 2026.

This page is an AI-written research summary of Imperial Oil Limited (IMO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: IMO income statement, IMO balance sheet, IMO key metrics, IMO analyst forecast, IMO chart. See the IMO stock overview for the latest quote and news.