Imperial Oil: Not The Cheapest Candidate Around
- Imperial Oil's Q3 2024 results showed revenue below expectations, but earnings per share exceeded estimates, despite lower energy prices and weak refining margins.
- The stock appears cheap compared to most industries, but is pricey relative to other large integrated energy businesses, justifying a 'hold' rating.
- The company continues to buy back stock and pay dividends, with significant allocations over the past three years.
- Future uncertainties, including weak refining margins and global economic conditions, support a conservative 'hold' rating rather than a 'buy'.
Torsten Asmus
Last week, the management team at Imperial Oil Limited (NYSE:IMO) announced financial results covering the third quarter of the company's 2024 fiscal year. Although the business fell short of analysts’ expectations when it came to revenue, earnings per share did exceed
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