INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis
USA - NYSE:IHG - US45857P8068 - ADR
128.92 USD
-0.85 (-0.66%)
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 scores excellent on profitability, but there are some minor concerns on its financial health. IHG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
IHG had positive earnings in the past year.
IHG had a positive operating cash flow in the past year.
IHG had positive earnings in 4 of the past 5 years.
IHG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.19%, IHG belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
IHG's Return On Invested Capital of 29.05% is amongst the best of the industry. IHG outperforms 96.21% of its industry peers.
IHG had an Average Return On Invested Capital over the past 3 years of 24.68%. This is significantly above the industry average of 10.74%.
The 3 year average ROIC (24.68%) for IHG is below the current ROIC(29.05%), indicating increased profibility in the last year.
| 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 87.12% of the companies in the same industry.
IHG's Profit Margin has improved in the last couple of years.
IHG has a Operating Margin of 22.34%. This is amongst the best in the industry. IHG outperforms 82.58% of its industry peers.
In the last couple of years the Operating Margin of IHG has grown nicely.
IHG's Gross Margin of 30.43% is on the low side compared to the rest of the industry. IHG is outperformed by 77.27% of its industry peers.
In the last couple of years the Gross Margin of IHG has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IHG is creating value.
IHG has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.45 indicates that IHG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.45, IHG is doing good in the industry, outperforming 68.94% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 6.03, IHG is doing good in the industry, outperforming 73.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.45 |
ROIC/WACC3.46
WACC8.39%
2.3 Liquidity
A Current Ratio of 0.79 indicates that IHG may have some problems paying its short term obligations.
With a Current ratio value of 0.79, IHG perfoms like the industry average, outperforming 40.15% of the companies in the same industry.
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.
With a Quick ratio value of 0.79, IHG perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.60% over the past year.
Measured over the past 5 years, IHG shows a small growth in Earnings Per Share. The EPS has been growing by 7.39% on average per year.
Looking at the last year, IHG shows a quite strong growth in Revenue. The Revenue has grown by 8.47% in the last year.
IHG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.25% yearly.
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
IHG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.69% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 26.20, which means the current valuation is very expensive for IHG.
IHG's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of IHG to the average of the S&P500 Index (25.89), we can say IHG is valued inline with the index average.
IHG is valuated rather expensively with a Price/Forward Earnings ratio of 21.19.
IHG's Price/Forward Earnings ratio is in line with the industry average.
IHG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.2 | ||
| Fwd PE | 21.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IHG indicates a slightly more expensive valuation: IHG is more expensive than 67.42% of the companies listed in the same industry.
IHG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.6 | ||
| EV/EBITDA | 19.05 |
4.3 Compensation for Growth
IHG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of IHG 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)1.26
PEG (5Y)3.54
EPS Next 2Y16.02%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, IHG has a reasonable but not impressive dividend return.
IHG's Dividend Yield is a higher than the industry average which is at 4.57.
Compared to an average S&P500 Dividend Yield of 2.36, IHG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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.
The dividend of IHG decreased 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 (11/14/2025, 6:40:00 PM)
128.92
-0.85 (-0.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners68.94%
Inst Owner Change-1%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap19.45B
Revenue(TTM)5.12B
Net Income(TTM)750.00M
Analysts68.46
Price Target121.95 (-5.41%)
Short Float %0.74%
Short Ratio6.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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)-1.53%
PT rev (3m)0.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.34%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.2 | ||
| Fwd PE | 21.19 | ||
| P/S | 3.8 | ||
| P/FCF | 28.6 | ||
| P/OCF | 22.25 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.05 |
EPS(TTM)4.92
EY3.82%
EPS(NY)6.08
Fwd EY4.72%
FCF(TTM)4.51
FCFY3.5%
OCF(TTM)5.79
OCFY4.49%
SpS33.95
BVpS-17.53
TBVpS-25.3
PEG (NY)1.26
PEG (5Y)3.54
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 | 2.45 |
F-Score7
WACC8.39%
ROIC/WACC3.46
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 26.2 and the Price/Book (PB) ratio is -7.35.
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.