Imperial Oil chairman, president and CEO Rich Kruger during the company's annual general meeting in Calgary, Alberta on Thursday, April 24, 2014.Larry MacDougal/The Canadian Press
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Imperial Oil's current score of 6 is relatively in-line with the market. The average score went down to six from seven on Nov. 29 of this year, mostly due to a decline in the earnings component score.
Earnings Score 7. Imperial Oil has mixed earnings expectations and performance, but this score is above the average earnings rating for the oil and gas refining and marketing industry of 5.3 and the S&P/TSX 60 index of 6.4. Over the past four quarters, the company has reported two positive, one negative and one in-line surprise. The average surprise for this time period has been 2.4 per cent.
Fundamental Score 8. Imperial Oil's fundamental rating is significantly more bullish than the oil and gas industry group average of 4.4. The company's net margin has been higher than its industry group average for each of the past five years.
Relative valuation Score 3. This is significantly below the S&P/TSX composite index average rating of 4.8. Compared to the oil and gas group, IMO is trading at a significant discount based on both price-to-sales ratio and trailing P/E. IMO's price-to-sales ratio of 1.2 represents a 4-per-cent discount to its five-year average of 1.3.
Risk Score 9. Imperial Oil's risk rating is above the S&P/TSX composite average of 8. On days when the market is up, IMO tends to outperform the composite. On days When the market is down, the stock generally performs in-line with the index. In both short-term and long-term periods, IMO has shown high correlation with the composite index. Thus, this stock would provide only low levels of diversification to a portfolio similar to the boarder market.
Price momentum Score 3. IMO shares are currently trading 5.3 per cent below their 50-day moving average of $43.17 and 12.6 per cent below their 200-day moving average of $46.78.
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StockReports+ gives each stock an average score that combines the quantitative analysis of six widely-used investment decision-making tools: earnings, fundamentals, relative valuation, risk, price momentum and insider trading. The average score for Thomson Reuters is 10 out of 10.
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