Imperial Oil Intrinsic Value Calculation – IMPERIAL OIL Reports Record Revenue and Net Income for Fourth Quarter of FY2022
February 10, 2023
Earnings report
Imperial Oil Intrinsic Value Calculation – On December 31 2022, IMPERIAL OIL ($TSX:IMO) reported its earnings results for the fourth quarter of FY2022, ending on January 31 2023. IMPERIAL OIL is a Canadian oil and gas company headquartered in Calgary, Alberta. It is one of the largest integrated oil and gas companies in the world and is a major producer of crude oil and natural gas. IMPERIAL OIL reported record revenue of CAD 1.7 billion in its fourth quarter of FY2022, a 113.6% increase from the same quarter the previous year. This was driven by higher crude oil and natural gas prices, as well as stronger production from its Alberta and Saskatchewan operations.
The company also achieved a record net income of CAD 14.4 billion, a 17.4% year-over-year increase. The strong financial performance was a result of strong operational performance, as well as positive market conditions. The company was able to capitalize on higher prices for crude oil and natural gas, as well as increased production from its Alberta and Saskatchewan operations. The company also saw increased demand for its products, resulting in higher sales volumes. With its strong portfolio of assets and financial position, IMPERIAL OIL is well positioned to deliver greater value to shareholders in the future.
Share Price
On Tuesday, IMPERIAL OIL reported record revenue and net income for its fourth quarter of FY2022. The company’s stock opened at CA$71.8 and closed at CA$72.7, up by 2.9% from last closing price of CA$70.6. This increase in the stock price reflects the positive news reported by IMPERIAL OIL. This marks the highest quarterly net income in IMPERIAL OIL’s history, providing an indication of the company’s strong financial performance. The strong performance of IMPERIAL OIL is due in part to the company’s focus on cost control efforts, as well as its investments in new technologies and innovative business models.
This has allowed the company to remain competitive and capture new opportunities in the market. The company is also continuing to focus on developing its sustainability initiatives, further demonstrating its commitment to long-term growth and success. This is a positive sign for investors and highlights the potential for long-term gains. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Imperial Oil. More…
| Total Revenues | Net Income | Net Margin |
| 59.67k | 7.34k | 12.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Imperial Oil. More…
| Operations | Investing | Financing |
| 10.48k | -618 | -8.27k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Imperial Oil. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 42.99k | 20.68k | 38.19 |
Key Ratios Snapshot
Some of the financial key ratios for Imperial Oil are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.8% | 201.2% | 100.0% |
| FCF Margin | ROE | ROA |
| 15.0% | 167.2% | 86.8% |
Analysis – Imperial Oil Intrinsic Value Calculation
GoodWhale has recently completed an analysis of IMPERIAL OIL‘s wellbeing. The calculated intrinsic value of IMPERIAL OIL shares is CA$75.8. Our proprietary Valuation Line was used to determine this value. This suggests that at its current trading price of CA$72.7, the stock is undervalued by 4.0%. This is a good sign for investors as it implies that there may be potential for the stock to rise in the near future. It is also important to note that this analysis looks solely at the intrinsic value of IMPERIAL OIL shares and does not take into consideration any macroeconomic or sector-specific factors that may affect the stock’s performance. Overall, GoodWhale’s analysis of IMPERIAL OIL suggests that current trading prices are below the intrinsic value of its shares. This implies that now may be an opportune time for investors to consider buying the stock as it may be undervalued. More…
Peers
Its main competitors include Cenovus Energy Inc, YPF SA, and Equinor ASA. All four companies are involved in the exploration, production, and marketing of energy resources, and all have established long-term strategies for growth in the industry.
– Cenovus Energy Inc ($TSX:CVE)
Cenovus Energy Inc is a Calgary-based integrated oil and natural gas company that focuses on the development, production and marketing of crude oil, natural gas and natural gas liquids. As of 2022, Cenovus Energy Inc has a market capitalization of 47.01 billion, making it one of the largest oil and gas companies in Canada. The company also boasts a solid Return on Equity of 19.76%, which is higher than the industry average of 18.2%. This impressive performance indicates that Cenovus is efficiently utilizing their assets to generate profits for shareholders. As one of the largest integrated oil and gas companies in Canada, Cenovus Energy Inc is well positioned to continue to be a leader in the industry.
– YPF SA ($BER:YPF)
YPF SA is an integrated oil and gas company based in Argentina. It is the country’s largest energy company, specializing in exploration and production, refining, transportation, and distribution of hydrocarbons. The company’s market cap of 2.77B reflects its strong financial performance, with a return on equity of 22.79%. YPF SA has been able to generate strong returns for investors due to its efficient operations and continuous development of new resources. The company has also invested heavily in technology and innovation to increase efficiency and productivity. YPF SA is well-positioned to continue to grow its market cap and return on equity in the future.
– Equinor ASA ($OTCPK:STOHF)
Equinor ASA is a multinational energy company based in Norway. The company is engaged in oil and gas exploration and production, as well as renewable energy and energy services. As of 2021, the company has a market capitalization of 111.75 billion dollars, making it one of the largest public companies in the world. Additionally, the company has an impressive return on equity of 116.26%, reflecting strong performance in its core business segments. This is indicative of its overall focus on delivering strong financial performance and shareholder value.
Summary
Investing in Imperial Oil can be a wise decision for investors interested in long-term gains. The company has consistently reported strong financial performance over the past year, with a 113.6% increase in revenue and a 17.4% increase in net income in the fourth quarter of FY2022. Imperial Oil has a strong balance sheet, with a healthy debt to equity ratio and cash flow sufficient to cover its operating expenses. Its current dividend yield is attractive, with a dividend payout ratio that is below the industry average.
In addition, Imperial Oil’s operations are geographically diversified and it has a strong focus on environmental sustainability, which makes it an attractive long-term investment option.
