Imperial Oil explores for, produces, and sells crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream, and Chemical. The company was founded in 1880 and is based in Calgary, Canada.
IMO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Imperial Oil Ltd. To summarize, we found that Imperial Oil Ltd ranked in the 53th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 8.5%. The most interesting components of our discounted cash flow analysis for Imperial Oil Ltd ended up being:
Imperial Oil Ltd's effective tax rate, as measured by taxes paid relative to net income, is at 21 -- greater than 83.03% of US stocks with positive free cash flow.
Imperial Oil Ltd's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -7.53. This coverage rate is greater than that of just 9.77% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Energy), Imperial Oil Ltd has a reliance on debt greater than only 21.04% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PEIX, EPD, TRGP, FGPRQ, and DLNG can be thought of as valuation peers to IMO, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
To tap the energy market's rally, it will be prudent to invest in momentum stocks that have more upside left. Our choices are TOTAL (TOT), Enerplus (ERF), Eni (E), Suncor Energy (SU) and Imperial Oil (IMO).
CALGARY, Alberta--(BUSINESS WIRE)--(TSE:IMO, NYSE American: IMO) Brad Corson, chairman, president and chief executive officer, and Dave Hughes, vice-president investor relations, Imperial Oil Limited, will host a 2020 Fourth Quarter Earnings Call on Tuesday, February 2, following the company’s fourth quarter earnings release that morning. The event begins at 9 a.m. MT and will be accessible by webcast. During the call, Mr. Corson will offer brief remarks prior to taking questions from Imperial’