Headquartered in Calgary, Alberta, Imperial Oil Ltd. (IMO) is one of Canada's largest integrated oil companies, with a history dating back to its incorporation in 1880. The company operates across three main segments: Upstream, Downstream, and Chemical, notes Kelley Wright, editor of IQ Trends.

In the Upstream segment, Imperial Oil engages in the exploration and production of crude oil, natural gas, synthetic crude oil, and bitumen. The Downstream operations involve refining crude oil, blending refined products, and distributing these products to market through a network of pipelines, rail, and road transport.

Imperial Oil Ltd. (IMO)
A graph showing the growth of the stock market  Description automatically generated

IMO markets petroleum products under the well-known Esso and Mobil brand names and serves a diverse customer base, including industrial and transportation sectors. The Chemical segment is focused on manufacturing and marketing petrochemicals. As a publicly traded subsidiary of Exxon Mobil Corp. (XOM), IMO benefits from XOM’s extensive resources.

Return on Invested Capital (ROIC) for IMO is 16%, calculated as Net Operating Profit After Tax (NOPAT) of $3,721 million divided by Average Invested Capital of $23,010 million. Free Cash Flow Yield (FCFY) is 15%.

PVR measures the difference between the market's expectations for future profits and the no-growth value of the stock. Economic Book Value (EBV) measures the no-growth value of the company based on the company's current NOPAT. IMO’s current PVR is 0.7 based on a recent stock price of $73.35 and its EBV per share for the trailing twelve months is $95.92.

IMO represents good value at a dividend yield of 2.25%. Based on the recent dividend of $1.71 per share, a 2.25% dividend yield is present at $76 per share, suggesting IMO offers good current value.

Subscribe to IQ Trends here…