INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis
USA - NYSE:IHG - US45857P8068 - ADR
124.61 USD
+2.04 (+1.66%)
IHG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 134 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
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.
Each year in the past 5 years IHG had a positive operating cash flow.
1.2 Ratios
IHG has a better Return On Assets (15.19%) than 92.54% of its industry peers.
The Return On Invested Capital of IHG (29.05%) is better than 96.27% 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 10.67%.
The 3 year average ROIC (24.68%) for IHG is below the current ROIC(29.05%), indicating increased profibility in the last year.
| 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 86.57% of its industry peers.
IHG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.34%, IHG belongs to the best of the industry, outperforming 84.33% of the companies in the same industry.
In the last couple of years the Operating Margin of IHG has grown nicely.
The Gross Margin of IHG (30.43%) is worse than 76.12% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IHG 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.
IHG has a worse debt/assets ratio than last year.
2.2 Solvency
IHG has an Altman-Z score of 2.31. This is not the best score and indicates that IHG is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of IHG (2.31) is better than 61.94% of its industry peers.
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.
The Debt to FCF ratio of IHG (6.03) is better than 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.31 |
ROIC/WACC3.49
WACC8.32%
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 41.04% of its industry peers.
A Quick Ratio of 0.79 indicates that IHG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.79, IHG is in line with its industry, outperforming 46.27% of the companies in the same 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.
The Earnings Per Share has been growing slightly by 7.39% on average over the past years.
IHG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.47%.
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
Based on estimates for the next years, IHG will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.61% on average per year.
IHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.61% yearly.
EPS Next Y19.68%
EPS Next 2Y15.69%
EPS Next 3Y14.43%
EPS Next 5Y15.61%
Revenue Next Year5.56%
Revenue Next 2Y5.99%
Revenue Next 3Y6.04%
Revenue Next 5Y6.61%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.34, IHG is valued on the expensive side.
63.43% of the companies in the same industry are more expensive than IHG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.83, IHG is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.82, the valuation of IHG can be described as rather expensive.
Based on the Price/Forward Earnings ratio, IHG is valued a bit cheaper than 61.94% of the companies in the same industry.
IHG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.34 | ||
| Fwd PE | 19.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IHG is valued a bit more expensive than the industry average as 62.69% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, IHG is valued a bit cheaper than the industry average as 64.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.59 | ||
| EV/EBITDA | 17.57 |
4.3 Compensation for Growth
IHG's 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 14.43% in the coming years.
PEG (NY)1.24
PEG (5Y)3.29
EPS Next 2Y15.69%
EPS Next 3Y14.43%
5. Dividend
5.1 Amount
IHG has a Yearly Dividend Yield of 1.38%.
Compared to an average industry Dividend Yield of 3.83, IHG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, IHG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
The dividend of IHG decreases each year by -16.62%.
IHG has been paying a dividend for at least 10 years, so it has 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
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 2Y15.69%
EPS Next 3Y14.43%
NYSE:IHG (10/24/2025, 1:19:03 PM)
124.61
+2.04 (+1.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners68.94%
Inst Owner Change0.09%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap18.08B
Revenue(TTM)5.12B
Net Income(TTM)750.00M
Analysts67.69
Price Target123.84 (-0.62%)
Short Float %0.84%
Short Ratio6.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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)-2.75%
PT rev (3m)1.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.35%
EPS NY rev (3m)5.84%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.34 | ||
| Fwd PE | 19.82 | ||
| P/S | 3.53 | ||
| P/FCF | 26.59 | ||
| P/OCF | 20.69 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.57 |
EPS(TTM)5.12
EY4.11%
EPS(NY)6.29
Fwd EY5.05%
FCF(TTM)4.69
FCFY3.76%
OCF(TTM)6.02
OCFY4.83%
SpS35.28
BVpS-18.22
TBVpS-26.3
PEG (NY)1.24
PEG (5Y)3.29
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 | 2.31 |
F-Score7
WACC8.32%
ROIC/WACC3.49
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 Y19.68%
EPS Next 2Y15.69%
EPS Next 3Y14.43%
EPS Next 5Y15.61%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.05%
Revenue Next Year5.56%
Revenue Next 2Y5.99%
Revenue Next 3Y6.04%
Revenue Next 5Y6.61%
EBIT growth 1Y15.32%
EBIT growth 3Y25.64%
EBIT growth 5Y5.15%
EBIT Next Year18.32%
EBIT Next 3Y11.04%
EBIT Next 5Y11.03%
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 24.34 and the Price/Book (PB) ratio is -6.84.
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 19.68% in the next year.