INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IHG - US45857P8068 - ADR
133.57 USD
-1.34 (-0.99%)
133.57 USD
0 (0%)
Taking everything into account, IHG scores 5 out of 10 in our fundamental rating. IHG was compared to 131 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
In the past year IHG was profitable.
IHG had a positive operating cash flow in the past year.
Of the past 5 years IHG 4 years were profitable.
Each year in the past 5 years IHG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.19%, IHG belongs to the top of the industry, outperforming 92.37% of the companies in the same industry.
IHG has a better Return On Invested Capital (29.05%) than 96.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IHG is significantly above the industry average of 10.43%.
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 has a better Profit Margin (14.65%) than 84.73% of its industry peers.
IHG's Profit Margin has improved in the last couple of years.
IHG's Operating Margin of 22.34% is amongst the best of the industry. IHG outperforms 83.21% of its industry peers.
IHG's Operating Margin has improved in the last couple of years.
IHG has a Gross Margin of 30.43%. This is in the lower half of the industry: IHG underperforms 76.34% 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.
IHG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, IHG has less shares outstanding
Compared to 1 year ago, IHG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.49 indicates that IHG is not a great score, but indicates only limited risk for bankruptcy at the moment.
IHG's Altman-Z score of 2.49 is fine compared to the rest of the industry. IHG outperforms 67.18% 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 Debt to FCF ratio of 6.03. This is in the better half of the industry: IHG outperforms 73.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.49 |
ROIC/WACC3.45
WACC8.41%
2.3 Liquidity
A Current Ratio of 0.79 indicates that IHG may have some problems paying its short term obligations.
IHG's Current ratio of 0.79 is in line compared to the rest of the industry. IHG outperforms 41.22% of 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 of 0.79. This is comparable to the rest of the industry: IHG outperforms 44.27% of its industry peers.
| 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.
IHG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.39% yearly.
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
The Earnings Per Share is expected to grow by 17.69% on average over the next years. This is quite good.
IHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.45% yearly.
EPS Next Y20.84%
EPS Next 2Y16.07%
EPS Next 3Y14.92%
EPS Next 5Y17.69%
Revenue Next Year5.73%
Revenue Next 2Y6.03%
Revenue Next 3Y6.03%
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 27.09, IHG can be considered very expensive at the moment.
IHG's Price/Earnings is on the same level as the industry average.
IHG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.89, which indicates a rather expensive current valuation of IHG.
IHG's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of IHG to the average of the S&P500 Index (23.69), we can say IHG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.09 | ||
| Fwd PE | 21.89 |
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 69.47% of the companies listed in the same industry.
61.07% of the companies in the same industry are more expensive than IHG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.57 | ||
| EV/EBITDA | 19.49 |
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.
IHG's earnings are expected to grow with 14.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)3.66
EPS Next 2Y16.07%
EPS Next 3Y14.92%
5. Dividend
5.1 Amount
IHG has a Yearly Dividend Yield of 1.29%.
Compared to an average industry Dividend Yield of 3.84, IHG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.29, IHG pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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
35.60% of the earnings are spent on dividend by IHG. This is a low number and sustainable payout ratio.
DP35.6%
EPS Next 2Y16.07%
EPS Next 3Y14.92%
133.57
-1.34 (-0.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners68.94%
Inst Owner Change-0.29%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap20.11B
Revenue(TTM)5.12B
Net Income(TTM)750.00M
Analysts68.46
Price Target123.93 (-7.22%)
Short Float %0.66%
Short Ratio5.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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)1.62%
PT rev (3m)-0.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.27%
EPS NY rev (3m)2.54%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.09 | ||
| Fwd PE | 21.89 | ||
| P/S | 3.93 | ||
| P/FCF | 29.57 | ||
| P/OCF | 23.01 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.49 |
EPS(TTM)4.93
EY3.69%
EPS(NY)6.1
Fwd EY4.57%
FCF(TTM)4.52
FCFY3.38%
OCF(TTM)5.81
OCFY4.35%
SpS34.01
BVpS-17.56
TBVpS-25.35
PEG (NY)1.3
PEG (5Y)3.66
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 | 2.49 |
F-Score7
WACC8.41%
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 Y20.84%
EPS Next 2Y16.07%
EPS Next 3Y14.92%
EPS Next 5Y17.69%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.05%
Revenue Next Year5.73%
Revenue Next 2Y6.03%
Revenue Next 3Y6.03%
Revenue Next 5Y7.45%
EBIT growth 1Y15.32%
EBIT growth 3Y25.64%
EBIT growth 5Y5.15%
EBIT Next Year19.18%
EBIT Next 3Y11.41%
EBIT Next 5Y10.57%
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 27.09 and the Price/Book (PB) ratio is -7.61.
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 20.84% in the next year.