Imperial Oil Intrinsic Value Calculation – Imperial Oil Limited Closes Up 0.94% At $54.56, Encouraging Investment For The Long Run
February 2, 2023
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Imperial Oil Intrinsic Value Calculation – Imperial Oil ($TSX:IMO) Limited is a Canadian oil and gas company with operations in both the upstream and downstream sectors of the industry. The company has a strong presence in the Canadian oil patch and is one of the largest oil and gas companies in Canada. Today, Imperial Oil Limited’s stock closed up 0.94% at $54.56, encouraging investors to look ahead and invest for the long run. This is a positive sign for investors who are looking for steady, long-term growth. Imperial Oil Limited offers a diversified portfolio of energy products and services across Canada, the United States, Mexico, and the Caribbean. The company’s upstream operations include exploration and production (E&P) activities in Canada and the United States, as well as oil sands mining operations in Alberta.
Its downstream operations include refining and marketing activities, as well as retail operations. Imperial Oil Limited is committed to providing safe, reliable, and sustainable energy products and services. The company focuses on innovation and technology to ensure that its operations are as efficient and cost-effective as possible. The company’s commitment to sustainability is evidenced by its low emissions targets and its commitment to reducing energy consumption. With its strong presence in the Canadian oil patch, its diversified portfolio of energy products and services, and its commitment to sustainability, Imperial Oil Limited is well-positioned to provide investors with steady, long-term growth.
Share Price
The stock opened at CA$72.0 and closed at CA$70.6, a decrease of 2.8% from the prior closing price of 72.7. The company has been performing well overall, having achieved a positive return on equity in the past year and continuing to grow its revenue and profit over time. Despite the recent downturn in price, Imperial Oil remains an attractive option for investors looking for a long-term investment with potential for strong returns. The company has a diversified portfolio of energy-related businesses and provides energy services to most major markets in North America, as well as internationally.
In addition, Imperial Oil has been actively pursuing new opportunities and investments, particularly in the oil and gas industry. This diversification allows the company to hedge against potential market risks, which is beneficial both short-term and long-term. Furthermore, Imperial Oil is committed to corporate social responsibility and is taking measures to reduce its environmental footprint, including investing in renewable energy sources and reducing greenhouse gas emissions. This commitment to sustainability has solidified the company’s reputation as a responsible corporate citizen and has been recognized by various organizations, including the CDP Climate Change Program. Investors should consider the current market conditions when making their decisions, but with the right research and analysis they can capitalize on this opportunity and set themselves up for long-term success. 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 |
| 50.36k | 2.48k | 6.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Imperial Oil. More…
| Operations | Investing | Financing |
| 9.32k | -544 | -7.07k |
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 |
| 44.89k | 22.91k | 35.94 |
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 |
| 16.4% | 34.6% | 9.4% |
| FCF Margin | ROE | ROA |
| 15.6% | 9.7% | 5.1% |
Analysis – Imperial Oil Intrinsic Value Calculation
GoodWhale’s financial analysis of IMPERIAL OIL shows a fair value of CA$75.8 per share, determined using our proprietary Valuation Line. Currently, IMPERIAL OIL stock is trading at CA$70.6, making it a fair price that is undervalued by 6.8%. The Valuation Line is a powerful tool which assesses a company’s fair value through fundamental analysis of its financials. It considers a number of factors, such as revenue growth, operating margin, and return on equity, to determine a company’s intrinsic value. Our analysis shows that IMPERIAL OIL is a great long-term investment opportunity. It has a strong balance sheet, with low debt levels and high profitability. The company has consistently delivered above-average returns over the years and is well-positioned to continue its growth trajectory. Overall, our analysis shows that IMPERIAL OIL is an attractive investment for those looking for a low-risk, high-return option. With a fair value of CA$75.8 and trading at CA$70.6, now is the time to take advantage of this opportunity and add IMPERIAL OIL to your portfolio. More…
Peers
Its main competitors include Cenovus Energy Inc, YPF SA, and Equinor ASA. All four companies are involved in the exploration, production, and marketing of energy resources, and all have established long-term strategies for growth in the industry.
– Cenovus Energy Inc ($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
Imperial Oil Limited (TSX:IMO) closed up 0.94% at $54.56 on Tuesday, giving investors an encouraging sign for the long run. Despite the current negative media exposure, analysts suggest that Imperial Oil remains a good investment. The company continues to have a strong balance sheet, robust cash flow, and a diversified portfolio of operations.
Additionally, the company has a proven track record of delivering solid shareholder returns. Investors should consider Imperial Oil as a potential long-term investment and take advantage of the current market conditions.
