INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis
USA - NYSE:IHG - US45857P8068 - ADR
126.22 USD
-0.92 (-0.72%)
126.22 USD
0 (0%)
Taking everything into account, IHG scores 5 out of 10 in our fundamental rating. 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 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.
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
With an excellent Return On Assets value of 15.19%, IHG belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
IHG has a better Return On Invested Capital (29.05%) than 96.21% 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 10.59%.
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
IHG's Profit Margin of 14.65% is amongst the best of the industry. IHG outperforms 86.36% of its industry peers.
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 82.58% of the companies in the same industry.
IHG's Operating Margin has improved in the last couple of years.
The Gross Margin of IHG (30.43%) is worse than 76.52% 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
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
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 2.42 indicates that IHG is not a great score, but indicates only limited risk for bankruptcy at the moment.
IHG has a better Altman-Z score (2.42) than 67.42% of its industry peers.
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.
IHG has a better Debt to FCF ratio (6.03) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.42 |
ROIC/WACC3.47
WACC8.37%
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 40.91% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that IHG may have some problems paying its short term obligations.
The Quick ratio of IHG (0.79) 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.
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 17.69% yearly.
IHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.45% yearly.
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
With a Price/Earnings ratio of 25.65, IHG can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as IHG.
Compared to an average S&P500 Price/Earnings ratio of 25.51, IHG is valued at the same level.
The Price/Forward Earnings ratio is 20.75, which indicates a rather expensive current valuation of IHG.
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 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.65 | ||
| Fwd PE | 20.75 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IHG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28 | ||
| EV/EBITDA | 18.72 |
4.3 Compensation for Growth
The 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)1.24
PEG (5Y)3.47
EPS Next 2Y16.02%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, IHG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.58, IHG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.31, IHG pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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 2Y16.02%
EPS Next 3Y14.86%
126.22
-0.92 (-0.72%)
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 Cap19.04B
Revenue(TTM)5.12B
Net Income(TTM)750.00M
Analysts68.46
Price Target122.94 (-2.6%)
Short Float %0.67%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)-0.73%
PT rev (3m)0.91%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.93%
EPS NY rev (3m)4.74%
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 | 25.65 | ||
| Fwd PE | 20.75 | ||
| P/S | 3.72 | ||
| P/FCF | 28 | ||
| P/OCF | 21.78 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.72 |
EPS(TTM)4.92
EY3.9%
EPS(NY)6.08
Fwd EY4.82%
FCF(TTM)4.51
FCFY3.57%
OCF(TTM)5.79
OCFY4.59%
SpS33.95
BVpS-17.53
TBVpS-25.3
PEG (NY)1.24
PEG (5Y)3.47
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 | 2.42 |
F-Score7
WACC8.37%
ROIC/WACC3.47
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 25.65 and the Price/Book (PB) ratio is -7.2.
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.