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%)
Taking everything into account, IHG scores 5 out of 10 in our fundamental rating. IHG was compared to 132 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 has a decent growth rate and is not valued too expensively.
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.
IHG had positive earnings in 4 of the past 5 years.
Each year in the past 5 years IHG had a positive operating cash flow.
1.2 Ratios
IHG has a Return On Assets of 15.19%. This is amongst the best in the industry. IHG outperforms 92.42% of its industry peers.
IHG has a Return On Invested Capital of 29.05%. This is amongst the best in the industry. IHG outperforms 96.21% of its industry peers.
IHG had an Average Return On Invested Capital over the past 3 years of 24.68%. This is significantly above the industry average of 10.40%.
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
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.
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 83.33% 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 76.52% 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
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
Compared to 5 years ago, IHG has less shares outstanding
Compared to 1 year ago, IHG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.58 indicates that IHG is not a great score, but indicates only limited risk for bankruptcy at the moment.
IHG's Altman-Z score of 2.58 is fine compared to the rest of the industry. IHG outperforms 67.42% 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.
IHG's Debt to FCF ratio of 6.03 is fine compared to the rest 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 | 2.58 |
ROIC/WACC3.43
WACC8.47%
2.3 Liquidity
A Current Ratio of 0.79 indicates that IHG may have some problems paying its short term obligations.
IHG has a Current ratio of 0.79. This is comparable to the rest of the industry: IHG outperforms 40.91% of its industry peers.
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.
Measured over the past years, IHG shows a small growth in Revenue. The Revenue has been growing by 1.25% on average per year.
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 17.69% yearly.
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.
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
A Price/Earnings ratio of 28.98 indicates a quite expensive valuation of IHG.
Compared to the rest of the industry, the Price/Earnings ratio of IHG is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.38. IHG is around the same levels.
A Price/Forward Earnings ratio of 23.41 indicates a rather expensive valuation of IHG.
IHG's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.83. IHG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.98 | ||
| Fwd PE | 23.41 |
4.2 Price Multiples
69.70% of the companies in the same industry are cheaper than IHG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IHG is valued a bit cheaper than 61.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.63 | ||
| EV/EBITDA | 20.35 |
4.3 Compensation for Growth
The 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
IHG has a Yearly Dividend Yield of 1.29%.
IHG's Dividend Yield is a higher than the industry average which is at 1.48.
Compared to the average S&P500 Dividend Yield of 1.87, IHG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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 2Y16.07%
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 | 1.29% |
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)1.62%
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 | 20.35 |
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 | 2.58 |
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.