INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IHG - US45857P8068 - ADR
142.85 USD
+2.39 (+1.7%)
142.85 USD
0 (0%)
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. 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
With an excellent Return On Assets value of 15.19%, IHG belongs to the best of the industry, outperforming 92.48% of the companies in the same industry.
IHG has a Return On Invested Capital of 29.05%. This is amongst the best in the industry. IHG outperforms 96.24% 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 10.40%.
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 84.96% of its industry peers.
IHG's Profit Margin has improved in the last couple of years.
IHG has a Operating Margin of 22.34%. This is amongst the best in the industry. IHG outperforms 83.46% of its industry peers.
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 75.94% 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
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
IHG has an Altman-Z score of 2.61. 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.
IHG has a better Altman-Z score (2.61) than 69.17% 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's Debt to FCF ratio of 6.03 is fine compared to the rest of the industry. IHG outperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.61 |
ROIC/WACC3.43
WACC8.47%
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.
The Current ratio of IHG (0.79) is comparable to the rest of the 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.
IHG's Quick ratio of 0.79 is in line compared to the rest of the industry. IHG outperforms 44.36% 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.
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%.
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
Based on estimates for the next years, IHG will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.69% on average per year.
The Revenue is expected to grow by 7.45% on average over the next years.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.98, IHG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of IHG is on the same level as its industry peers.
When comparing the Price/Earnings ratio of IHG to the average of the S&P500 Index (26.39), we can say IHG is valued inline with the index average.
IHG is valuated rather expensively with a Price/Forward Earnings ratio of 23.41.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IHG is on the same level as its industry peers.
IHG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.98 | ||
| Fwd PE | 23.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IHG is valued a bit more expensive than 69.17% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IHG is valued a bit cheaper than 61.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.63 | ||
| EV/EBITDA | 20.64 |
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 14.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)3.92
EPS Next 2Y16.07%
EPS Next 3Y14.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, IHG has a reasonable but not impressive dividend return.
IHG's Dividend Yield is a higher than the industry average which is at 1.54.
Compared to the average S&P500 Dividend Yield of 1.87, IHG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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
5.3 Sustainability
IHG pays out 35.60% of its income as dividend. This is a sustainable payout ratio.
DP35.6%
EPS Next 2Y16.07%
EPS Next 3Y14.92%
142.85
+2.39 (+1.7%)
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 Cap21.51B
Revenue(TTM)5.12B
Net Income(TTM)750.00M
Analysts68.46
Price Target123.93 (-13.24%)
Short Float %0.66%
Short Ratio5.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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)0.81%
PT rev (3m)-2.68%
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)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.98 | ||
| Fwd PE | 23.41 | ||
| P/S | 4.2 | ||
| P/FCF | 31.63 | ||
| P/OCF | 24.61 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.64 |
EPS(TTM)4.93
EY3.45%
EPS(NY)6.1
Fwd EY4.27%
FCF(TTM)4.52
FCFY3.16%
OCF(TTM)5.81
OCFY4.06%
SpS34.01
BVpS-17.56
TBVpS-25.35
PEG (NY)1.39
PEG (5Y)3.92
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 | 2.61 |
F-Score7
WACC8.47%
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 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 28.98 and the Price/Book (PB) ratio is -8.13.
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.