
TSE:IMO
This summary was created by AI, based on 17 opinions in the last 12 months.
Imperial Oil (IMO) has garnered attention from various experts, with many viewing it as a strong investment opportunity fueled by a favorable outlook on oil prices and robust fundamentals. Several analysts highlighted its excellent cash generation capability, low debt levels, and impressive dividend growth. While some expressed concerns about current valuations, noting that the stock is trading at a premium compared to peers, many agree that its long-term prospects remain compelling. The company's large inventory depth and shareholder returns strategy are significant positives, and it continues to be a standout performer amidst the broader oil and gas sector. Discussions indicate that despite some volatility in oil prices and external geopolitical factors, the sentiment toward Imperial Oil remains generally positive, particularly for long-term investors.
A large amount of US exports are products. The refiners have crack spreads that are currently very favorable, which is why you’re seeing merger mania. Imperial Oil, Husky and others in this space are talking about significant profit growth in their Refining and Marketing business. Their net income this quarter was $516 million up from $333 the year before. If you look at the long-term chart, this stock hasn’t made money for investors. The dividend yield is not great. Compare it to Suncor. This hasn’t been an exciting place to be.
Imperial is out of favour. It hasn’t made investors any money in a long time. In 2008 it was a $56 stock, now it is $33. It’s book value is $29.40, balance sheet is in strong shape, production is down. If you want to own something in the refinery or E&P space, which is Imperial’s mix, look at Suncor.