INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IHG - US45857P8068 - ADR
134.18 USD
-1.47 (-1.08%)
We assign a fundamental rating of 5 out of 10 to IHG. IHG was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. IHG has an excellent profitability rating, but there are some minor concerns on its financial health. IHG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
IHG had positive earnings in the past year.
In the past year IHG had a positive cash flow from operations.
Of the past 5 years IHG 4 years were profitable.
In the past 5 years IHG always reported a positive cash flow from operatings.
1.2 Ratios
IHG's Return On Assets of 15.19% is amongst the best of the industry. IHG outperforms 91.67% of its industry peers.
IHG's Return On Invested Capital of 29.05% is amongst the best of the industry. IHG outperforms 96.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IHG is significantly above the industry average of 10.42%.
The last Return On Invested Capital (29.05%) for IHG is above the 3 year average (24.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | N/A | ||
| ROIC | 29.05% |
ROA(3y)12.57%
ROA(5y)7.64%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.68%
ROIC(5y)17.64%
1.3 Margins
Looking at the Profit Margin, with a value of 14.65%, IHG belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
IHG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.34%, IHG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of IHG has grown nicely.
IHG has a worse Gross Margin (30.43%) than 75.76% of its industry peers.
IHG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.34% | ||
| PM (TTM) | 14.65% | ||
| GM | 30.43% |
OM growth 3Y5.4%
OM growth 5Y3.86%
PM growth 3Y11.71%
PM growth 5Y8.92%
GM growth 3Y-1.28%
GM growth 5Y1.91%
2. Health
2.1 Basic Checks
IHG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, IHG has less shares outstanding
The number of shares outstanding for IHG has been reduced compared to 5 years ago.
Compared to 1 year ago, IHG has a worse debt to assets ratio.
2.2 Solvency
IHG has an Altman-Z score of 2.52. This is not the best score and indicates that IHG is in the grey zone with still only limited risk for bankruptcy at the moment.
IHG's Altman-Z score of 2.52 is fine compared to the rest of the industry. IHG outperforms 68.18% of its industry peers.
The Debt to FCF ratio of IHG is 6.03, which is on the high side as it means it would take IHG, 6.03 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IHG (6.03) is better than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.52 |
ROIC/WACC3.45
WACC8.42%
2.3 Liquidity
A Current Ratio of 0.79 indicates that IHG may have some problems paying its short term obligations.
IHG has a Current ratio (0.79) which is in line with its industry peers.
IHG has a Quick Ratio of 0.79. This is a bad value and indicates that IHG is not financially healthy enough and could expect problems in meeting its short term obligations.
IHG has a Quick ratio (0.79) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
IHG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.60%, which is quite good.
The Earnings Per Share has been growing slightly by 7.39% on average over the past years.
Looking at the last year, IHG shows a quite strong growth in Revenue. The Revenue has grown by 8.47% in the last year.
The Revenue has been growing slightly by 1.25% on average over the past years.
EPS 1Y (TTM)18.6%
EPS 3Y43.24%
EPS 5Y7.39%
EPS Q2Q%18.87%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.05%
3.2 Future
The Earnings Per Share is expected to grow by 17.69% on average over the next years. This is quite good.
Based on estimates for the next years, IHG will show a small growth in Revenue. The Revenue will grow by 7.45% on average per year.
EPS Next Y20.74%
EPS Next 2Y16.02%
EPS Next 3Y14.86%
EPS Next 5Y17.69%
Revenue Next Year5.77%
Revenue Next 2Y5.99%
Revenue Next 3Y6.07%
Revenue Next 5Y7.45%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.27, the valuation of IHG can be described as expensive.
IHG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.31, IHG is valued at the same level.
A Price/Forward Earnings ratio of 22.06 indicates a rather expensive valuation of IHG.
The rest of the industry has a similar Price/Forward Earnings ratio as IHG.
When comparing the Price/Forward Earnings ratio of IHG to the average of the S&P500 Index (36.59), we can say IHG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.27 | ||
| Fwd PE | 22.06 |
4.2 Price Multiples
IHG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. IHG is more expensive than 68.94% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as IHG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.76 | ||
| EV/EBITDA | 19.78 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
IHG has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as IHG's earnings are expected to grow with 14.86% in the coming years.
PEG (NY)1.31
PEG (5Y)3.69
EPS Next 2Y16.02%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
IHG has a Yearly Dividend Yield of 1.35%.
Compared to an average industry Dividend Yield of 6.38, IHG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.35, IHG pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
The dividend of IHG decreases each year by -16.62%.
IHG has been paying a dividend for at least 10 years, so it has a reliable track record.
IHG has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-16.62%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
IHG pays out 35.60% of its income as dividend. This is a sustainable payout ratio.
DP35.6%
EPS Next 2Y16.02%
EPS Next 3Y14.86%
NYSE:IHG (11/28/2025, 7:39:04 PM)
134.18
-1.47 (-1.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners68.94%
Inst Owner Change-0.42%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap20.24B
Revenue(TTM)5.12B
Net Income(TTM)750.00M
Analysts68.46
Price Target121.88 (-9.17%)
Short Float %0.67%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend1.6
Dividend Growth(5Y)-16.62%
DP35.6%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.58%
PT rev (3m)-1.98%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.93%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.27 | ||
| Fwd PE | 22.06 | ||
| P/S | 3.95 | ||
| P/FCF | 29.76 | ||
| P/OCF | 23.16 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.78 |
EPS(TTM)4.92
EY3.67%
EPS(NY)6.08
Fwd EY4.53%
FCF(TTM)4.51
FCFY3.36%
OCF(TTM)5.79
OCFY4.32%
SpS33.95
BVpS-17.53
TBVpS-25.3
PEG (NY)1.31
PEG (5Y)3.69
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | N/A | ||
| ROCE | 40.27% | ||
| ROIC | 29.05% | ||
| ROICexc | 37.14% | ||
| ROICexgc | 78.59% | ||
| OM | 22.34% | ||
| PM (TTM) | 14.65% | ||
| GM | 30.43% | ||
| FCFM | 13.28% |
ROA(3y)12.57%
ROA(5y)7.64%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.68%
ROIC(5y)17.64%
ROICexc(3y)42.58%
ROICexc(5y)30.73%
ROICexgc(3y)167.06%
ROICexgc(5y)116.93%
ROCE(3y)34.5%
ROCE(5y)24.84%
ROICexgc growth 3Y8.62%
ROICexgc growth 5Y17.19%
ROICexc growth 3Y22.74%
ROICexc growth 5Y13.9%
OM growth 3Y5.4%
OM growth 5Y3.86%
PM growth 3Y11.71%
PM growth 5Y8.92%
GM growth 3Y-1.28%
GM growth 5Y1.91%
F-Score7
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 293.94% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 6.39 | ||
| Cash Conversion | 72.23% | ||
| Profit Quality | 90.67% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.52 |
F-Score7
WACC8.42%
ROIC/WACC3.45
Cap/Depr(3y)129.32%
Cap/Depr(5y)97.04%
Cap/Sales(3y)1.97%
Cap/Sales(5y)2.17%
Profit Quality(3y)118.96%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.6%
EPS 3Y43.24%
EPS 5Y7.39%
EPS Q2Q%18.87%
EPS Next Y20.74%
EPS Next 2Y16.02%
EPS Next 3Y14.86%
EPS Next 5Y17.69%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.05%
Revenue Next Year5.77%
Revenue Next 2Y5.99%
Revenue Next 3Y6.07%
Revenue Next 5Y7.45%
EBIT growth 1Y15.32%
EBIT growth 3Y25.64%
EBIT growth 5Y5.15%
EBIT Next Year18.32%
EBIT Next 3Y11.04%
EBIT Next 5Y10.93%
FCF growth 1Y-0.73%
FCF growth 3Y3.42%
FCF growth 5Y6.39%
OCF growth 1Y11.2%
OCF growth 3Y4.41%
OCF growth 5Y2.09%
INTERCONTINENTAL HOTELS-ADR / IHG FAQ
Can you provide the ChartMill fundamental rating for INTERCONTINENTAL HOTELS-ADR?
ChartMill assigns a fundamental rating of 5 / 10 to IHG.
What is the valuation status of INTERCONTINENTAL HOTELS-ADR (IHG) stock?
ChartMill assigns a valuation rating of 4 / 10 to INTERCONTINENTAL HOTELS-ADR (IHG). This can be considered as Fairly Valued.
What is the profitability of IHG stock?
INTERCONTINENTAL HOTELS-ADR (IHG) has a profitability rating of 8 / 10.
What is the valuation of INTERCONTINENTAL HOTELS-ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INTERCONTINENTAL HOTELS-ADR (IHG) is 27.27 and the Price/Book (PB) ratio is -7.65.
What is the earnings growth outlook for INTERCONTINENTAL HOTELS-ADR?
The Earnings per Share (EPS) of INTERCONTINENTAL HOTELS-ADR (IHG) is expected to grow by 20.74% in the next year.