Should I buy Imperial Oil stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of Imperial Oil for over three years. Every month, hundreds of thousands of Canadians rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. As outlined in our ethical charter, we have never received, and will never accept, compensation from Imperial Oil.

What is Imperial Oil?

How much is Imperial Oil stock?

The price of Imperial Oil stock is rising this week. As of today, Imperial Oil trades at $67.38 USD, showing a 24-hour gain of +0.6% and a weekly increase of +2.1%. The company holds a market capitalization of $35.27 billion USD, with an average trading volume over the past three months of 1.13 million shares. The P/E Ratio sits at 10.22, providing a forward dividend yield of 2.88%, and the stock’s beta is 1.43, reflecting a higher sensitivity to market moves. With recent momentum but some volatility, Imperial Oil remains an appealing option for investors seeking both growth and reliable income in the Canadian energy sector.

Our full analysis on Imperial Oil stock

Having reviewed Imperial Oil’s most recent quarterly financials alongside a comprehensive assessment of its stock’s trajectory over the past three years, we integrated a wide array of analytics—from fundamental metrics and technical signals to real-time market data and competitive benchmarking—via our proprietary algorithms. This multidimensional approach allows for a data-driven view, one that contextualizes Imperial Oil’s position in both domestic and global energy markets. So, why might Imperial Oil stock once again become a strategic entry point into the Canadian energy sector in 2025?

Recent Performance and Market Context

Imperial Oil (TSX: IMO, NYSE: IMO) has demonstrated notable resilience and adaptability in an environment marked by evolving energy trends and oil price volatility. As of April 30, 2025, the company's stock is trading at $67.38 USD, reflecting sustained stability within its 52-week range of $58.76 to $80.17. Over the past three years, Imperial Oil has substantially outperformed many of its peers, propelled by robust operational execution and strategic capital allocation.

Key recent positives:

• Quarterly Strength: Q4 2024 saw a net income of CAD 1,225 million ($2.37 per diluted share), underpinned by record upstream production and strong downstream throughput.
• Capital Returns: Nearly CAD 1.8 billion was returned to shareholders via dividends and share buybacks—demonstrating continued management commitment to capital discipline.
• Dividend Growth: The company increased its dividend by 20%, from 60 cents to 72 cents per share, outpacing many dividend peers in the Canadian oil sector.
• Macro Tailwinds: Rising global energy demand and ongoing supply discipline by major oil-producing nations have contributed to a favourable pricing environment, while Canada’s stable regulatory framework continues to position domestic producers like Imperial for comparative advantage.

Imperial Oil’s strategic alignment with parent Exxon Mobil further enhances its position, offering technology transfer, operational best practices, and scalable research into low-carbon fuels—setting it apart in a competitive landscape.

Technical Analysis

Analyzing Imperial Oil’s technical signals as of April 30, 2025, reveals a nuanced picture that ultimately supports the notion of a potentially attractive entry point, particularly for disciplined investors seeking asymmetrical risk/reward opportunities.

Indicators

• Moving Averages:
• 20-Day EMA @ 66.79 & 50-Day EMA @ 67.31 (Current price above both: bullish short-term signals)
• 100-Day EMA @ 67.95 & 200-Day SMA @ 69.55 (Current price below both: caution flagged for longer time horizons)
• Momentum & Strength:
• RSI (14) @ 56.83 (Neutral, with room for further upside before overbought territory)
• MACD 0.15 (Short-term consolidation, not a strong sell)
• ADX (14) @ 20.64 (Trend potential establishing; not yet overextended)
• ROC @ 15.28 (Positive, suggesting recovering momentum)

Support & Resistance

While the stock’s position below its 200-day moving average indicates some medium-term caution, the cluster of buy signals at shorter intervals signals that the shares may be coiling for an upward move—especially if upcoming catalysts are realized.

Fundamental Analysis

Imperial Oil’s current valuation, operational excellence, and capital discipline stand out in the North American energy sector.

Financials

• P/E Ratio: 10.22 (attractive relative to sector and historical averages, suggesting the stock is not fully pricing in future earnings power)
• Earnings Per Share (EPS): $6.59
• Market Cap: $35.27 billion USD
• Dividend Yield: 2.88%, with recent strong dividend growth
• Robust Cash Flow: Q4 2024 operating cash flow was CAD 1,789 million—a testament to business model resilience

Operational and Strategic Strengths

• Production Records: Achieved highest annual production in over 30 years—evidence of cost control and operational consistency
• Downstream Margin Capture: 95% refinery utilization sustains robust downstream margins, insulating Imperial from upstream price swings
• Expansion Into Renewables: Construction of the Strathcona renewable diesel facility exemplifies future-proofing and ESG alignment

Valuation Perspective

Compared to competitors (Suncor, Canadian Natural Resources), Imperial Oil trades at a compelling valuation, balancing strong yield, upside leverage to crude, and a disciplined capital expenditures profile. Its integrated model provides some insulation from commodity volatility, positioning it as both a growth and income candidate.

Volume and Liquidity

Imperial Oil maintains exemplary liquidity and float characteristics for both institutional and retail investors.

• Trading Volume: Consistent volumes reinforce market confidence, with steady participation reflecting the stock’s blue-chip status within TSX and NYSE indices.
• Float: The significant public float (due to Exxon Mobil’s majority ownership) allows for dynamic price discovery while limiting excessive volatility, supporting both stable valuation and gradual re-rating prospects.

Such liquidity ensures that new investors can take meaningful positions without materially impacting the share price—a key consideration for portfolio construction.

Catalysts and Positive Outlook

Numerous structural and situational factors position Imperial Oil for renewed upside in the months ahead.

• Renewable Diesel Upside: The imminent completion of Canada’s largest renewable diesel facility at Strathcona (expected mid-2025) underscores Imperial’s energy transition credentials and potential ESG re-rating by institutional investors.
• Leming SAGD Redevelopment: Set for late 2025 deployment, this project targets meaningful incremental production with an attractive cost structure.
• Shareholder Returns: Continued robust cash flow provides high visibility on future buybacks and dividend growth.
• Operational Momentum: Record levels of upstream and downstream throughput illustrate not only asset quality but also flawless execution.
• Capital Discipline: Conservative balance sheet and strategic investment ensure resilience amid oil price swings.
• Technological Edge: Access to Exxon Mobil’s global research, digitalization, and emissions technologies accelerates Imperial Oil's adaptation to the evolving energy landscape.

In aggregate, these catalysts suggest the stock’s current valuation may understate meaningful future growth and re-rating potential as new projects come online and market sentiment pivots toward energy equities.

Investment Strategies

Investors may consider Imperial Oil a compelling candidate for a range of strategies, each leveraging its current technical and fundamental profile.

• Short-Term Positioning: Opportunity exists to capitalize on a technical base as the stock consolidates above key support, particularly ahead of expected positive news flow from the Strathcona renewable diesel facility.
• Medium-Term Upside: As major projects transition to operational status over the next 6-12 months, cash generation should drive further dividend announcements and potential upward earnings revisions.
• Long-Term Entry: Imperial Oil’s integrated structure, commitment to low-carbon fuel expansion, and sustainable capital return profile provide a foundation for multi-year secular outperformance—even as global energy markets transition.

Positioning ahead of these catalysts—especially given the recent dividend boost and sizable share buybacks—seems to represent an excellent opportunity for investors seeking exposure to the energy sector’s evolving narrative.

Is It the Right Time to Buy Imperial Oil?

In summary, Imperial Oil combines operational excellence, compelling value metrics, and a clear trajectory toward both conventional and renewable energy growth. Record-setting production, robust free cash flow, consistent dividend increases, and upcoming milestone projects provide a suite of bullish catalysts not fully reflected in the current share price.

While technical signals advise some medium-term prudence, the firm base above key support levels and a forthcoming wave of positive project news suggest the fundamentals justify renewed investor interest. For investors looking to balance income, growth, and energy transition exposure, Imperial Oil’s blend of stability, momentum, and strategic evolution may be entering a new bullish phase.

Considering the company’s sustained performance, forward-focused projects, and exceptional shareholder return philosophy, Imperial Oil appears to represent an excellent opportunity for those seeking to capitalize on both the resilience and the transformation of Canada’s energy sector in the coming quarters.

With Imperial Oil approaching a pivotal year—underpinned by a powerful combination of operational achievements and new growth levers—the stock stands out as a timely and strategic addition for investors ready to participate in the next phase of Canadian energy market leadership.

How to buy Imperial Oil stock in Canada?

Buying Imperial Oil stock online is simple, secure, and accessible for Canadian investors using regulated brokerage platforms. Today’s digital brokers allow you to own shares directly (“spot buying”) or to trade price movements using Contracts for Difference (CFDs). Spot buying is ideal for long-term investors targeting dividends and potential capital growth, while CFDs offer more flexibility and leverage for active traders. Both methods are easy to use—and choosing the right one starts with picking a broker that suits your needs. You’ll find a detailed broker comparison further down this page to help in your selection.

Cash buying

A cash purchase means you buy Imperial Oil shares outright, giving you direct ownership and entitlement to dividends. Most Canadian brokers charge a fixed commission per order, typically around $5–$10 CAD. For example, if the current Imperial Oil share price is $91.92 CAD (based on $67.38 USD and an exchange rate of 1.37), a $1,000 CAD investment—factoring in a $5 commission—allows you to buy approximately 10 shares.

Example scenario

Gain scenario:
If the share price rises by 10%, your 10 shares would now be valued at $1,100.
Result: +$100 gross gain, or +10% on your investment.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on Imperial Oil’s stock price movements without owning the shares. CFDs are offered with leverage, amplifying both gains and losses. Brokers commonly quote variable fees: a spread (difference between buy and sell prices) and overnight financing for positions held longer than a day. Suppose you open a CFD position on Imperial Oil with $1,000 and use 5x leverage—you’ll control a market exposure of $5,000.

Example scenario

Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 profit on your $1,000 wager (excluding fees).

Final advice

Before making your first investment, always compare brokers’ fees, platforms, and conditions, as these can significantly influence your returns. Your choice between buying shares outright or trading via CFDs should match your investment style and goals. To find out which broker suits you best, consult the comprehensive comparison further down this page. Investing in Imperial Oil can be a valuable step towards diversifying your portfolio—choose the method and partner that’s right for you.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying Imperial Oil stock

The latest news about Imperial Oil

Imperial Oil posted record Q4 2024 operational results, leading Canadian upstream output and refinery utilization. In its most recent quarterly release (April 26, 2025), Imperial Oil reported the highest annual upstream production in more than three decades, with 460,000 gross oil-equivalent barrels produced per day in Q4. The company’s Canadian refineries operated at 95% capacity, well above peers, underpinning robust petroleum product supply to the Canadian market. This operational excellence supports strong Canadian market share and positions Imperial as a domestic leader amid evolving energy demands.

The company strengthened its financial footing with record cash flow and a robust commitment to shareholder returns. Imperial Oil generated CAD 1,789 million in operating cash flow in the quarter and returned nearly CAD 1.8 billion to shareholders through dividends and repurchases. A notable 20% dividend increase—raising the quarterly payout from 60 to 72 cents per share—signals not only management’s confidence in ongoing Canadian cash generation but also enhances value for domestic income-focused investors in the TSX-listed shares.

Major progress on the Strathcona renewable diesel project highlights Imperial Oil’s shift toward decarbonization in Canada. Construction at the Strathcona refinery, which will be the largest renewable diesel plant in the country, remains on schedule for mid-2025 start-up. This project is poised to make a significant contribution to Canada’s low-carbon fuel initiatives and demonstrates Imperial’s proactive adaptation to local regulatory requirements and customer preferences for greener fuels, improving its ESG standing among institutional investors.

Short-term technical signals suggest a positive bias for IMO shares, supported by resilient Canadian oil demand. Imperial’s stock price currently trades above its 20-day and 50-day moving averages, supported by a neutral Relative Strength Index (RSI 56.8) and an impressive 15.3% Rate of Change (ROC) over recent weeks. With Canadian fuel consumption remaining healthy and refinery margins stable, these technical tailwinds may provide a constructive short-term environment for share price appreciation despite some caution indicated by signals on longer timeframes.

Imperial Oil’s market position and parentage secure access to capital, technology, and strategic advantages within Canada. As a majority-owned affiliate of Exxon Mobil and one of the few fully integrated Canadian oil companies, Imperial continues to benefit from global expertise, stable access to advanced operational technologies, and competitive funding. This unique positioning reinforces the company’s resilience in the Canadian regulatory landscape, ensures ongoing investments in growth projects, and enhances the long-term outlook for its domestic stakeholders.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.