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INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis

NYSE:IHG - New York Stock Exchange, Inc. - US45857P8068 - ADR - Currency: USD

115.34  -0.62 (-0.53%)

After market: 115.34 0 (0%)

Fundamental Rating

5

IHG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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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.
Each year in the past 5 years IHG had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

1.2 Ratios

IHG has a Return On Assets of 13.23%. This is amongst the best in the industry. IHG outperforms 90.98% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.63%, IHG belongs to the top of the industry, outperforming 96.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IHG is significantly above the industry average of 13.81%.
The last Return On Invested Capital (26.63%) for IHG is above the 3 year average (24.68%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 13.23%
ROE N/A
ROIC 26.63%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

IHG's Profit Margin of 12.76% is amongst the best of the industry. IHG outperforms 81.95% of its industry peers.
IHG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.15%, IHG belongs to the best of the industry, outperforming 82.71% of the companies in the same industry.
In the last couple of years the Operating Margin of IHG has grown nicely.
Looking at the Gross Margin, with a value of 29.56%, IHG is doing worse than 77.44% of the companies in the same industry.
In the last couple of years the Gross Margin of IHG has grown nicely.
Industry RankSector Rank
OM 21.15%
PM (TTM) 12.76%
GM 29.56%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IHG is creating value.
Compared to 1 year ago, IHG has less shares outstanding
IHG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IHG has a worse debt to assets ratio.
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 2.44 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 2.44, IHG is in the better half of the industry, outperforming 66.92% of the companies in the same industry.
IHG has a debt to FCF ratio of 5.71. This is a neutral value as IHG would need 5.71 years to pay back of all of its debts.
IHG has a better Debt to FCF ratio (5.71) than 78.95% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.71
Altman-Z 2.44
ROIC/WACC3.23
WACC8.25%
IHG Yearly LT Debt VS Equity VS FCFIHG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B -2B 3B

2.3 Liquidity

IHG has a Current Ratio of 0.97. 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 Current ratio value of 0.97, IHG perfoms like the industry average, outperforming 54.14% of the companies in the same industry.
IHG has a Quick Ratio of 0.97. 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 0.97, IHG perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.97
Quick Ratio 0.97
IHG Yearly Current Assets VS Current LiabilitesIHG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.99% over the past year.
The Earnings Per Share has been growing slightly by 7.39% on average over the past years.
Looking at the last year, IHG shows a small growth in Revenue. The Revenue has grown by 6.47% in the last year.
The Revenue has been growing slightly by 1.25% on average over the past years.
EPS 1Y (TTM)14.99%
EPS 3Y43.24%
EPS 5Y7.39%
EPS Q2Q%18.32%
Revenue 1Y (TTM)6.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.27%

3.2 Future

The Earnings Per Share is expected to grow by 14.63% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.87% on average over the next years.
EPS Next Y17.18%
EPS Next 2Y15.15%
EPS Next 3Y14.28%
EPS Next 5Y14.63%
Revenue Next Year6.28%
Revenue Next 2Y6.19%
Revenue Next 3Y6.11%
Revenue Next 5Y7.87%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
IHG Yearly Revenue VS EstimatesIHG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 25.57, IHG can be considered very expensive at the moment.
IHG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of IHG to the average of the S&P500 Index (27.15), we can say IHG is valued inline with the index average.
The Price/Forward Earnings ratio is 21.82, which indicates a rather expensive current valuation of IHG.
The rest of the industry has a similar Price/Forward Earnings ratio as IHG.
When comparing the Price/Forward Earnings ratio of IHG to the average of the S&P500 Index (21.60), we can say IHG is valued inline with the index average.
Industry RankSector Rank
PE 25.57
Fwd PE 21.82
IHG Price Earnings VS Forward Price EarningsIHG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 63.91% of the companies listed in the same industry.
65.41% of the companies in the same industry are more expensive than IHG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 27.54
EV/EBITDA 18.58
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 14.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)3.46
EPS Next 2Y15.15%
EPS Next 3Y14.28%

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3

5. Dividend

5.1 Amount

IHG has a Yearly Dividend Yield of 1.53%.
Compared to an average industry Dividend Yield of 3.71, IHG pays a bit more dividend than its industry peers.
IHG's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
Industry RankSector Rank
Dividend Yield 1.53%

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
IHG Yearly Dividends per shareIHG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2022 2023 2024 2025 1 2 3

5.3 Sustainability

IHG pays out 41.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.24%
EPS Next 2Y15.15%
EPS Next 3Y14.28%
IHG Yearly Income VS Free CF VS DividendIHG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 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 (6/30/2025, 8:04:00 PM)

After market: 115.34 0 (0%)

115.34

-0.62 (-0.53%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)05-08 2025-05-08
Earnings (Next)08-07 2025-08-07
Inst Owners69.35%
Inst Owner Change4.37%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap17.79B
Analysts51.67
Price Target129.3 (12.1%)
Short Float %0.96%
Short Ratio4.93
Dividend
Industry RankSector Rank
Dividend Yield 1.53%
Yearly Dividend1.6
Dividend Growth(5Y)-16.62%
DP41.24%
Div Incr Years2
Div Non Decr Years2
Ex-Date04-04 2025-04-04 (1.144)
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)2.29%
PT rev (3m)0.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
Industry RankSector Rank
PE 25.57
Fwd PE 21.82
P/S 3.61
P/FCF 27.54
P/OCF 24.58
P/B N/A
P/tB N/A
EV/EBITDA 18.58
EPS(TTM)4.51
EY3.91%
EPS(NY)5.29
Fwd EY4.58%
FCF(TTM)4.19
FCFY3.63%
OCF(TTM)4.69
OCFY4.07%
SpS31.91
BVpS-14.99
TBVpS-21.74
PEG (NY)1.49
PEG (5Y)3.46
Profitability
Industry RankSector Rank
ROA 13.23%
ROE N/A
ROCE 36.91%
ROIC 26.63%
ROICexc 41.6%
ROICexgc 98.42%
OM 21.15%
PM (TTM) 12.76%
GM 29.56%
FCFM 13.12%
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%
ROICexcg growth 3Y8.62%
ROICexcg 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-Score5
Asset Turnover1.04
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.71
Debt/EBITDA 2.95
Cap/Depr 120%
Cap/Sales 1.58%
Interest Coverage 6.12
Cash Conversion 65.46%
Profit Quality 102.87%
Current Ratio 0.97
Quick Ratio 0.97
Altman-Z 2.44
F-Score5
WACC8.25%
ROIC/WACC3.23
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)14.99%
EPS 3Y43.24%
EPS 5Y7.39%
EPS Q2Q%18.32%
EPS Next Y17.18%
EPS Next 2Y15.15%
EPS Next 3Y14.28%
EPS Next 5Y14.63%
Revenue 1Y (TTM)6.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.27%
Revenue Next Year6.28%
Revenue Next 2Y6.19%
Revenue Next 3Y6.11%
Revenue Next 5Y7.87%
EBIT growth 1Y1.66%
EBIT growth 3Y25.64%
EBIT growth 5Y5.15%
EBIT Next Year18.06%
EBIT Next 3Y11.15%
EBIT Next 5Y10.26%
FCF growth 1Y-20.35%
FCF growth 3Y3.42%
FCF growth 5Y6.39%
OCF growth 1Y-18.92%
OCF growth 3Y4.41%
OCF growth 5Y2.09%