INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IHG - US45857P8068 - ADR
137.465 USD
-0.34 (-0.24%)
We assign a fundamental rating of 5 out of 10 to IHG. IHG was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. While IHG has a great profitability rating, there are some minor concerns on its financial health. IHG has a correct valuation and a medium growth rate.
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.
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 has a Return On Assets of 15.19%. This is amongst the best in the industry. IHG outperforms 92.48% of its industry peers.
IHG has a Return On Invested Capital of 29.05%. This is amongst the best in the industry. IHG outperforms 96.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IHG is significantly above the industry average of 10.34%.
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 84.96% of the companies in the same industry.
In the last couple of years the Profit Margin of IHG has grown nicely.
Looking at the Operating Margin, with a value of 22.34%, IHG belongs to the top of the industry, outperforming 83.46% of the companies in the same industry.
IHG's Operating Margin has improved in the last couple of years.
IHG's Gross Margin of 30.43% is on the low side compared to the rest of the industry. IHG is outperformed by 74.44% 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.
IHG has less shares outstanding than it did 1 year ago.
IHG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IHG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.55 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 2.55, IHG is doing good in the industry, outperforming 67.67% of the companies in the same industry.
IHG has a debt to FCF ratio of 6.03. This is a slightly negative value and a sign of low solvency as IHG would need 6.03 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.03, IHG is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.55 |
ROIC/WACC3.44
WACC8.44%
2.3 Liquidity
IHG has a Current 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's Current ratio of 0.79 is in line compared to the rest of the industry. IHG outperforms 42.86% of its industry peers.
A Quick Ratio of 0.79 indicates that IHG may have some problems paying its short term obligations.
IHG has a Quick ratio (0.79) which is in line with its industry peers.
| 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.
IHG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.39% yearly.
IHG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.47%.
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
IHG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.22% yearly.
The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y19.8%
EPS Next 2Y16.19%
EPS Next 3Y15%
EPS Next 5Y18.22%
Revenue Next Year5.77%
Revenue Next 2Y6.03%
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
With a Price/Earnings ratio of 27.88, IHG can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as IHG.
IHG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
With a Price/Forward Earnings ratio of 22.48, IHG is valued on the expensive side.
IHG's Price/Forward Earnings ratio is in line with the industry average.
IHG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.88 | ||
| Fwd PE | 22.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IHG is valued a bit more expensive than 67.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IHG is valued a bit cheaper than the industry average as 61.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.43 | ||
| EV/EBITDA | 20.02 |
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 15.00% in the coming years.
PEG (NY)1.41
PEG (5Y)3.77
EPS Next 2Y16.19%
EPS Next 3Y15%
5. Dividend
5.1 Amount
IHG has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
IHG's Dividend Yield is a higher than the industry average which is at 6.32.
Compared to the average S&P500 Dividend Yield of 1.92, IHG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of IHG decreases each year by -16.62%.
IHG has paid a dividend for at least 10 years, which is 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 2Y16.19%
EPS Next 3Y15%
NYSE:IHG (1/13/2026, 12:40:58 PM)
137.465
-0.34 (-0.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners68.69%
Inst Owner Change0%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap20.69B
Revenue(TTM)5.12B
Net Income(TTM)750.00M
Analysts70
Price Target128.36 (-6.62%)
Short Float %0.65%
Short Ratio5.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend1.6
Dividend Growth(5Y)-16.62%
DP35.6%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)3.57%
PT rev (3m)3.65%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.86%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.88 | ||
| Fwd PE | 22.48 | ||
| P/S | 4.04 | ||
| P/FCF | 30.43 | ||
| P/OCF | 23.68 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.02 |
EPS(TTM)4.93
EY3.59%
EPS(NY)6.11
Fwd EY4.45%
FCF(TTM)4.52
FCFY3.29%
OCF(TTM)5.81
OCFY4.22%
SpS34.01
BVpS-17.56
TBVpS-25.35
PEG (NY)1.41
PEG (5Y)3.77
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 | 2.55 |
F-Score7
WACC8.44%
ROIC/WACC3.44
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 Y19.8%
EPS Next 2Y16.19%
EPS Next 3Y15%
EPS Next 5Y18.22%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.05%
Revenue Next Year5.77%
Revenue Next 2Y6.03%
Revenue Next 3Y6.07%
Revenue Next 5Y7.45%
EBIT growth 1Y15.32%
EBIT growth 3Y25.64%
EBIT growth 5Y5.15%
EBIT Next Year19.44%
EBIT Next 3Y11.71%
EBIT Next 5Y10.81%
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 for IHG stock?
ChartMill assigns a valuation rating of 4 / 10 to INTERCONTINENTAL HOTELS-ADR (IHG). This can be considered as Fairly Valued.
Can you provide the profitability details for INTERCONTINENTAL HOTELS-ADR?
INTERCONTINENTAL HOTELS-ADR (IHG) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for IHG stock?
The Price/Earnings (PE) ratio for INTERCONTINENTAL HOTELS-ADR (IHG) is 27.88 and the Price/Book (PB) ratio is -7.83.
What is the expected EPS growth for INTERCONTINENTAL HOTELS-ADR (IHG) stock?
The Earnings per Share (EPS) of INTERCONTINENTAL HOTELS-ADR (IHG) is expected to grow by 19.8% in the next year.