INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:IHG • US45857P8068
142.17 USD
+4.93 (+3.59%)
At close: Feb 2, 2026
142.17 USD
0 (0%)
After Hours: 2/2/2026, 8:14:38 PM
Overall IHG gets a fundamental rating of 5 out of 10. We evaluated IHG against 132 industry peers in the Hotels, Restaurants & Leisure industry. IHG scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, IHG is valued expensive at the moment.
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.
- IHG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- IHG's Return On Assets of 15.19% is amongst the best of the industry. IHG outperforms 92.42% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 29.05%, IHG belongs to the top of the industry, outperforming 96.21% 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 10.38%.
- 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
- Looking at the Profit Margin, with a value of 14.65%, IHG belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
- In the last couple of years the Profit Margin of IHG has grown nicely.
- The Operating Margin of IHG (22.34%) is better than 83.33% 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 74.24% 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.
- 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.
2.2 Solvency
- IHG has an Altman-Z score of 2.54. 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 (2.54) is better than 68.18% 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 73.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.54 |
ROIC/WACC3.43
WACC8.46%
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.
- IHG has a Current ratio (0.79) which 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 43.94% of its industry peers.
| 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.
- 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.
- 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 18.22% on average per year.
- IHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.45% yearly.
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
- 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
- A Price/Earnings ratio of 28.84 indicates a quite expensive valuation of IHG.
- The rest of the industry has a similar Price/Earnings ratio as IHG.
- When comparing the Price/Earnings ratio of IHG to the average of the S&P500 Index (28.41), we can say IHG is valued inline with the index average.
- IHG is valuated rather expensively with a Price/Forward Earnings ratio of 23.28.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IHG is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of IHG to the average of the S&P500 Index (25.64), we can say IHG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.84 | ||
| Fwd PE | 23.28 |
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 68.18% of the companies listed in the same industry.
- IHG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.46 | ||
| EV/EBITDA | 19.94 |
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 14.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)3.9
EPS Next 2Y16.1%
EPS Next 3Y14.95%
5. Dividend
5.1 Amount
- IHG has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
- IHG's Dividend Yield is a higher than the industry average which is at 1.25.
- IHG's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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.
- 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
- 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%
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 28.84 and the Price/Book (PB) ratio is -8.09.
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.