INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis

NYSE:IHG • US45857P8068

145.87 USD
+0.14 (+0.1%)
At close: Feb 12, 2026
146.01 USD
+0.14 (+0.1%)
Pre-Market: 2/13/2026, 4:24:50 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

IHG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 industry peers in the Hotels, Restaurants & Leisure industry. While IHG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IHG is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year IHG was profitable.
  • 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.
IHG Yearly Net Income VS EBIT VS OCF VS FCFIHG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M 800M 1B

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.
  • With an excellent Return On Invested Capital value of 29.05%, IHG belongs to the best of the industry, outperforming 96.18% of the companies in the same industry.
  • 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 RankSector 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%
IHG Yearly ROA, ROE, ROICIHG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

  • IHG has a better Profit Margin (14.65%) than 84.73% of its industry peers.
  • In the last couple of years the Profit Margin of IHG has grown nicely.
  • With an excellent Operating Margin value of 22.34%, IHG belongs to the best of the industry, outperforming 83.21% 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 74.81% of its industry peers.
  • In the last couple of years the Gross Margin of IHG has grown nicely.
Industry RankSector 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%
IHG Yearly Profit, Operating, Gross MarginsIHG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

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.
  • The number of shares outstanding for IHG has been reduced compared to 1 year ago.
  • The number of shares outstanding for IHG has been reduced compared to 5 years ago.
  • IHG has a worse debt/assets ratio than last year.
IHG Yearly Shares OutstandingIHG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
IHG Yearly Total Debt VS Total AssetsIHG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

  • An Altman-Z score of 2.64 indicates that IHG is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.64, IHG is in the better half of the industry, outperforming 71.76% 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 73.28% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 6.03
Altman-Z 2.64
ROIC/WACC3.43
WACC8.48%
IHG Yearly LT Debt VS Equity VS FCFIHG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B -2B 3B

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.
  • Looking at the Current ratio, with a value of 0.79, IHG is in line with its industry, outperforming 41.22% 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 43.51% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.79
Quick Ratio 0.79
IHG Yearly Current Assets VS Current LiabilitesIHG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • The Revenue has grown by 8.47% in the past year. This is quite good.
  • 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 18.22% 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 Y19.6%
EPS Next 2Y16.1%
EPS Next 3Y14.95%
EPS Next 5Y18.22%
Revenue Next Year5.77%
Revenue Next 2Y6.03%
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.
IHG Yearly Revenue VS EstimatesIHG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B
IHG Yearly EPS VS EstimatesIHG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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3

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 29.59, IHG can be considered very expensive at the moment.
  • IHG's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.67, IHG is valued at the same level.
  • A Price/Forward Earnings ratio of 23.89 indicates a rather expensive valuation of IHG.
  • IHG's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of IHG to the average of the S&P500 Index (27.69), we can say IHG is valued inline with the index average.
Industry RankSector Rank
PE 29.59
Fwd PE 23.89
IHG Price Earnings VS Forward Price EarningsIHG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 69.47% of the companies in the same industry are cheaper than IHG, based on the Enterprise Value to EBITDA ratio.
  • IHG's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 32.28
EV/EBITDA 21.01
IHG Per share dataIHG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20 30

4.3 Compensation for Growth

  • IHG's 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.
  • IHG's earnings are expected to grow with 14.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)4
EPS Next 2Y16.1%
EPS Next 3Y14.95%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • IHG has a Yearly Dividend Yield of 1.23%.
  • Compared to an average industry Dividend Yield of 1.25, IHG pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.80, IHG is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.23%

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.
  • The dividend of IHG decreased in the last 3 years.
Dividend Growth(5Y)-16.62%
Div Incr Years2
Div Non Decr Years2
IHG Yearly Dividends per shareIHG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2022 2023 2024 2025 1 2 3

5.3 Sustainability

  • IHG pays out 35.60% of its income as dividend. This is a sustainable payout ratio.
DP35.6%
EPS Next 2Y16.1%
EPS Next 3Y14.95%
IHG Yearly Income VS Free CF VS DividendIHG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B
IHG Dividend Payout.IHG Dividend Payout, showing the Payout Ratio.IHG Dividend Payout.PayoutRetained Earnings

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INTERCONTINENTAL HOTELS-ADR

NYSE:IHG (2/12/2026, 8:04:00 PM)

Premarket: 146.01 +0.14 (+0.1%)

145.87

+0.14 (+0.1%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)10-23
Earnings (Next)02-17
Inst Owners68.69%
Inst Owner Change5.59%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap21.95B
Revenue(TTM)5.12B
Net Income(TTM)750.00M
Analysts70
Price Target9866.74 (6664.06%)
Short Float %0.81%
Short Ratio5.92
Dividend
Industry RankSector Rank
Dividend Yield 1.23%
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)7586.88%
PT rev (3m)7990.87%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 29.59
Fwd PE 23.89
P/S 4.29
P/FCF 32.28
P/OCF 25.12
P/B N/A
P/tB N/A
EV/EBITDA 21.01
EPS(TTM)4.93
EY3.38%
EPS(NY)6.11
Fwd EY4.19%
FCF(TTM)4.52
FCFY3.1%
OCF(TTM)5.81
OCFY3.98%
SpS34.02
BVpS-17.57
TBVpS-25.36
PEG (NY)1.51
PEG (5Y)4
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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 2.64
F-Score7
WACC8.48%
ROIC/WACC3.43
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 Y19.6%
EPS Next 2Y16.1%
EPS Next 3Y14.95%
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 3 / 10 to INTERCONTINENTAL HOTELS-ADR (IHG). This can be considered as Overvalued.


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 29.59 and the Price/Book (PB) ratio is -8.3.


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 19.6% in the next year.