Is IMO a high-quality business?

AlphaMadera's AlphaQuality grade scores Imperial Oil Limited on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how IMO compares to a Buffett-style quality bar.

What is Imperial Oil Limited's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to IMO based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes IMO a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

IMO - Imperial Oil Limited

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $44.99 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

B 74.9 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

B- 63.9

5yr Avg ROIC 17.0% 85/100
Operating Margin Trend -1.24 pp/yr 15/100

Capital Efficiency

Weight: 10%

A+ 95.3

5yr Avg ROE 20.5% 93/100
5yr Share-Count CAGR -8.3% 100/100

Growth Quality

Weight: 5%

B 72.6

5yr Revenue CAGR 5.8% 64/100
5yr EPS CAGR 16.8% 91/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 25%

A- 81.8

5yr FCF Margin 9.7% 69/100
5yr FCF/NI Conversion 1.14x 98/100

Balance Sheet

Weight: 25%

A+ 95.0

Net Debt / EBITDA 0.47x 90/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 4.53 98/100

Stability

Weight: 20%

D+ 39.5

EPS Volatility (σ/μ) 0.75 10/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 2/5 60/100

3 of 4 gurus held; 2 trimmed; 1 full exit.

Holders: 3 -1
Avg Δ position: -24.8%
New buys: 0
Full exits: 1

Greenblatt sold -100%
Cooperman decreased -55%
Wood decreased -19%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.