Imperial Oil Limited Common Stock (IMO)

FairStock Score: 66/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business. Imperial Oil is an integrated Canadian energy company: upstream production, downstream refining and marketing, and chemicals. That integration can cushion commodity cycles, but it is still a price-taker. FairStock classifies it as CYCLICAL — Oil & Gas Integrated: earnings follow the economic cycle. The filed numbers show why. In fiscal 2025, ended 2025-12-31, revenue was $38.7B, net income $3.3B, and diluted EPS $6.48. That was down from fiscal 2024 revenue of $40.9B, net income $4.8B, and EPS $9.03, and fiscal 2023 revenue of $44.5B, net income $4.9B, and EPS $8.49. Yet the latest filed quarter was powerful: in fiscal Q2 2026, ended 2026-06-30, revenue was $13.5B, net income $2.2B, and diluted EPS $4.52, versus fiscal Q2 2025 revenue of $9.6B, net income $949M, and EPS $1.86. Financial health looks solid. FairStock shows debt-to-equity of 0.17, Piotroski F-Score of 9/9, Altman Z-Score of 2.92, ROE 16.80%, ROCE 8.15%, and trailing free cash flow of $5.0B, an 8.1% FCF yield. That is a respectable cash engine. Valuation is the rub. At the close on 2026-10-13, the price was $128.93. FairStock's P/E is 21.07, P/B 3.51, EV/EBITDA 7.89, and Graham Number $83.60, leaving a margin of safety of -54.22%. PEG of 0.16 looks cheap only if boom earnings persist. I prefer buying cyclical strength well below intrinsic value; here the market already pays up for it.

In plain English: Imperial Oil is a Canadian energy company that produces oil and natural gas, refines it, and makes chemicals. The business looks financially strong in its latest filed quarter and carries little debt, but the shares at $128.93 look expensive compared with a conservative value estimate of about $83.60. It remains a cyclical company, so results depend heavily on energy prices.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer