Imperial Oil (HAM:IMP) Interest Coverage: 110.27 (As of Mar. 2026) — 83% Above Median


HAM:IMP Imperial Oil Ltd HAM:IMP
80 GF Score
Price €98.86
GF Value €69.69
! 2 Warning Signs
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What is Imperial Oil Interest Coverage?

Imperial Oil HAM:IMP -0.98% 80 Interest Coverage is 110.27 as of Mar. 2026, which is 83% above its 10-year median of 60.28. GuruFocus rates HAM:IMP with a GF Score™ of 80/100 and a GF Value™ of €69.69. The stock has 2 warning signs investors should review. Among 728 Oil & Gas companies, Imperial Oil ranks better than 85.85% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Imperial Oil's Operating Income for the three months ended in Mar. 2026 was €765 Mil. Imperial Oil's Interest Expense for the three months ended in Mar. 2026 was €-7 Mil. Imperial Oil's interest coverage for the quarter that ended in Mar. 2026 was 110.27. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Imperial Oil's Interest Coverage or its related term are showing as below:

HAM:IMP' s Interest Coverage Range Over the Past 10 Years
Min: 2.83   Med: 60.28   Max: 158.23
Current: 123.07


HAM:IMP's Interest Coverage is ranked better than
85.85% of 728 companies
in the Oil & Gas industry
Industry Median: 5.84 vs HAM:IMP: 123.07

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Imperial Oil  (HAM:IMP) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Imperial Oil Interest Coverage Related Terms


Imperial Oil Interest Coverage Historical Data

* Premium members only.

The historical data trend for Imperial Oil's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Imperial Oil Interest Coverage Chart

Imperial Oil Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 60.28 154.78 89.44 148.95 158.23

Imperial Oil Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 163.51 610.83 81.75 66.99 110.27

HAM:IMP vs XOM, CVX: Interest Coverage Comparison

For the Oil & Gas Integrated subindustry, Imperial Oil's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Imperial Oil Interest Coverage vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Imperial Oil's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Imperial Oil's Interest Coverage falls into.


HAM:IMP
80GF Score
Imperial Oil Ltd HAM:IMP
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Imperial Oil Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Imperial Oil's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Imperial Oil's Interest Expense was €-16 Mil. Its Operating Income was €2,547 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,555 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*2546.833/-16.096
=158.23

Imperial Oil's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Imperial Oil's Interest Expense was €-7 Mil. Its Operating Income was €765 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,598 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*764.756/-6.935
=110.27

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 110.27 mean?
Imperial Oil (HAM:IMP) has a Interest Coverage of 110.27 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Imperial Oil and its competitors. This is 83% above median its historical median of 60.28. Over the past decade, Imperial Oil's Interest Coverage has ranged from 2.83 to 158.23. According to the industry distribution chart, Imperial Oil ranks #103 out of 728 companies in the Oil & Gas industry, placing it in the top 14.1%.
Is Imperial Oil's Interest Coverage too high?
Imperial Oil's current Interest Coverage of 110.27 is 83% above median its 10-year median of 60.28. Over the past 10 years, this metric has ranged from a low of 2.83 to a high of 158.23. The Oil & Gas industry median Interest Coverage is 5.84. Imperial Oil's value of 110.27 is 1788.2% above this industry median. Based on the distribution chart, Imperial Oil ranks #103 out of 728 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Imperial Oil has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Imperial Oil's Interest Coverage compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, Imperial Oil ranks #103 out of 728 companies for Interest Coverage. This places Imperial Oil in the top 14% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 5.84. Imperial Oil's value of 110.27 is 1788.2% above this benchmark. Historically, Imperial Oil's own Interest Coverage has ranged from 2.83 to 158.23 over the past decade. While the company's 10-year median is 60.28 vs. the industry median of 5.84, Imperial Oil has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.84, based on 728 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Imperial Oil's current Interest Coverage of 110.27 is 1788.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Imperial Oil and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Imperial Oil's current Interest Coverage is 110.27, which is 83% above median its own 10-year median of 60.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Imperial Oil stock overvalued right now?
Imperial Oil (HAM:IMP) has a current Interest Coverage of 110.27. The stock's GF Value™ is €69.69, compared to a current price of €98.86 — trading 41.9% above its estimated fair value. The current Interest Coverage is 110.27, which is 83% above median its 10-year median of 60.28 and 1788.2% above the Oil & Gas industry median of 5.84. Imperial Oil's overall GF Score™ is 80/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Imperial Oil (HAM:IMP), the current Interest Coverage is 110.27 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Imperial Oil (HAM:IMP) Overvalued in 2026?

Based on GuruFocus' analysis, Imperial Oil stock appears to be overvalued. The current stock price of €98.86 is trading 41.9% above its estimated GF Value™ of €69.69.

Key valuation signals for HAM:IMP:

  • Interest Coverage: 110.27 (83% above median its 10-year median of 60.28)
  • GF Value™: €69.69 vs. price of €98.86 (41.9% above fair value)
  • GF Score™: 80/100 with 2 warning signs
  • Industry Position: 1788.2% above the Oil & Gas median (#103 of 728)

No single metric tells the full story. See the HAM:IMP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Imperial Oil Business Description

Industry EnergyOil & Gas
Address 505 Quarry Park Boulevard S.E, Calgary, AB, CAN, T2C 5N1
Imperial Oil Ltd is an integrated oil company active in all phases of the petroleum industry in Canada, including the exploration for, and production and sale of, crude oil, natural gas, petroleum products, and petrochemicals. It also pursues lower-emission business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, and lithium. The company's reportable segments are Upstream, Downstream, and Chemical. Maximum revenue for the company is generated from its Downstream segment, which refines crude oil into petroleum products and distributes and market these products. The Upstream segment explores and produces crude oil, its equivalents, and natural gas, and the Chemical segment manufactures and markets hydrocarbon-based chemicals and chemical products.
80GF Score

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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€98.86
Price
€69.69
GF Value