TSE:IMO

Imperial Oil (IMO.TO)

160.92
+0.53 (0.33%)
as of Jun 25, 2026, 8:00:00 pm Market Open.
242 watching
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Investor Insights
star iconJun 25, 2026, 12:00 am

This summary was created by AI, based on 15 opinions in the last 12 months.

Imperial Oil (IMO) has garnered positive attention from multiple experts who recognize its high-quality standing in the oil sector. The company has benefited from cash generation, a strong balance sheet, and a consistent record of returning capital to shareholders through dividends. While it is noted that the stock has seen impressive gains, some analysts caution that its current valuation may reflect this growth, suggesting a cautionary approach to new investments. Experts expect that, despite short-term fluctuations in oil prices driven by geopolitical events, the long-term outlook remains bullish, particularly with a strong focus on capital discipline and reserve longevity. Overall, Imperial Oil appears to be a solid investment choice amid market uncertainties, provided investors strategize around entry points and potential volatility.

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Consensus
Bullish
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Valuation
Fair Value
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SU
PAST TOP PICK
(A Top Pick Apr 03/24, Down 4%)

Very bullish on energy. Strong cash flow that continues to be returned to shareholders. Expecting capital appreciation as energy stocks added to portfolios again. Will continue to hold shares. 

TOP PICK

An alternative to CNQ. Returning capital to shareholders. Debt levels are down to 19%. Dividend growth north of 20%. Has grown dividend 23% a year over the last 5 years. Energy is one of the most under-owned sectors in the world. Good value and good total return. Yield is 2.5%.

Higher oil prices are better. But Trans Mountain pipeline is going to take a bunch more oil from Alberta, and so the differential on Canadian vs. US oil will continue to squeeze in. There's also been a pickup in volumes. He thinks the pension funds and foundations are going to have to own this sector again.

(Analysts’ price target is $89.00)
BUY

Currently testing lid on the chart direction. Would recommend buying. Currently breaking resistance. Bullish on oil prices. 

DON'T BUY

It's a stable, well-run integrated oil company, but he's never owned this, because the US parent majority-controls IMO. Is better growth elsewhere.

BUY
Great job at meaningfully buying back stock. Setting bar high for return of capital to shareholders. Trading at premium to peers. Quality company that is a safe bet for long term shareholders.
DON'T BUY
Company trading at slight premium to Suncor. Low risk name trading at 15x cash flow. Expecting a ~$90 share price. Not enough return for risk in energy sector.
HOLD
Long-term player in the space. Doesn't see XOM buying the rest of IMO. Security of supply is still important. The industry is continuing to improve in terms of environmental impact. He owns CNQ instead, one of the best run with great free cashflow.
PAST TOP PICK
(A Top Pick Jan 07/20, Down 17%) COVID-19 crushed this. It was trading at book value a year ago. He still likes it even though it has been painful. He is sticking with it.
DON'T BUY
Investors are more comfortable with their oil sands operation and yet it is discounted in the stock. There is no compelling reason to own it. The valuation is also not overly compelling. There are other names.
DON'T BUY
A large cap energy producer that he used to cover. The Canadian political landscape is an impediment. They need more takeaway capacity. The current supply-demand balance is too high. Inventory is high and the balance is out of equilibrium.
BUY
If you want to wade back into the oil patch this is probably the one with the strongest balance sheet. The advantage is the long life of the oil sands as they don’t need to explore for new oil. Most of the barrels in their reserves will be sold at higher prices. They also have downstream integration. It is a relatively safe play in the oil patch.
PAST TOP PICK
(A Top Pick Jan 03/19, Up 4%) They have done virtually nothing in the past year. It's indicative of the whole energy sector. It's now trading at its book value, which hasn't happened since 1995 during the oil fears. He suspects oil will go higher, though it might not soar. If it goes up, companies like this that are cheap could do better than what anybody expects. Risks are very minimal since it's bottomed out already.
TOP PICK
Oil is up $3 with a possible war in the middle east. The stock is at a terrific value. Good upside potential. If everything works out well, it could have a huge upside in a recovery. (Analysts’ price target is $36.53)
TOP PICK
He likes the dividend. You have to go back to 1992 before you find it trading so cheap to book value. It has 15-20% upside over the next year. In uncertain times, good companies like this bring comfort. Yield 2.41% (Analysts’ price target is $38.90)
DON'T BUY
Stock hasn't done anything in the last while. It moves with the price of oil. Doesn't have the beta of others, so doesn't provide the juice for capital gains. And other companies have a better dividend. Only 20% debt. Book value is $31.48. Not a big fan of the integrated companies.
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