INTERCONTINENTAL HOTELS-ADR (IHG) Fundamental Analysis & Valuation
NYSE:IHG • US45857P8068
Current stock price
146.465 USD
+2.84 (+1.98%)
Last:
This IHG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. IHG Profitability Analysis
1.1 Basic Checks
- In the past year IHG was profitable.
- IHG had a positive operating cash flow in the past year.
- Each year in the past 5 years IHG has been profitable.
- In the past 5 years IHG always reported a positive cash flow from operatings.
1.2 Ratios
- IHG has a better Return On Assets (14.18%) than 90.48% of its industry peers.
- IHG's Return On Invested Capital of 26.31% is amongst the best of the industry. IHG outperforms 95.24% of its industry peers.
- IHG had an Average Return On Invested Capital over the past 3 years of 26.54%. This is significantly above the industry average of 10.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.18% | ||
| ROE | N/A | ||
| ROIC | 26.31% |
ROA(3y)14.33%
ROA(5y)11.51%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)26.54%
ROIC(5y)22.11%
1.3 Margins
- Looking at the Profit Margin, with a value of 14.61%, IHG belongs to the top of the industry, outperforming 86.51% 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 23.41%. This is amongst the best in the industry. IHG outperforms 85.71% of its industry peers.
- IHG's Operating Margin has improved in the last couple of years.
- The Gross Margin of IHG (31.26%) is worse than 75.40% of its industry peers.
- IHG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.41% | ||
| PM (TTM) | 14.61% | ||
| GM | 31.26% |
OM growth 3Y8.19%
OM growth 5Y38.45%
PM growth 3Y14.88%
PM growth 5YN/A
GM growth 3Y3.73%
GM growth 5Y8.31%
2. IHG Health Analysis
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.
- IHG has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, IHG has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.42 indicates that IHG is not a great score, but indicates only limited risk for bankruptcy at the moment.
- IHG's Altman-Z score of 2.42 is fine compared to the rest of the industry. IHG outperforms 63.49% of its industry peers.
- The Debt to FCF ratio of IHG is 6.57, which is on the high side as it means it would take IHG, 6.57 years of fcf income to pay off all of its debts.
- IHG has a better Debt to FCF ratio (6.57) than 70.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.57 | ||
| Altman-Z | 2.42 |
ROIC/WACC3.16
WACC8.34%
2.3 Liquidity
- IHG has a Current Ratio of 0.98. 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 of 0.98. This is comparable to the rest of the industry: IHG outperforms 50.79% of its industry peers.
- A Quick Ratio of 0.97 indicates that IHG may have some problems paying its short term obligations.
- IHG's Quick ratio of 0.97 is in line compared to the rest of the industry. IHG outperforms 56.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.97 |
3. IHG Growth Analysis
3.1 Past
- IHG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.04%, which is quite good.
- The Earnings Per Share has been growing by 74.14% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 5.40% in the past year.
- The Revenue has been growing by 16.73% on average over the past years. This is quite good.
EPS 1Y (TTM)16.04%
EPS 3Y21.43%
EPS 5Y74.14%
EPS Q2Q%13.51%
Revenue 1Y (TTM)5.4%
Revenue growth 3Y10.06%
Revenue growth 5Y16.73%
Sales Q2Q%121.76%
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 12.57% on average per year.
- The Revenue is expected to decrease by -8.39% on average over the next years.
EPS Next Y16.59%
EPS Next 2Y14.75%
EPS Next 3Y14.45%
EPS Next 5Y12.57%
Revenue Next Year5.36%
Revenue Next 2Y5.44%
Revenue Next 3Y5.57%
Revenue Next 5Y-8.39%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 decreasing.
4. IHG Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 27.33, 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.
- IHG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.47.
- With a Price/Forward Earnings ratio of 23.43, IHG is valued on the expensive side.
- IHG's Price/Forward Earnings ratio is in line with the industry average.
- IHG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.62.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.33 | ||
| Fwd PE | 23.43 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IHG is valued a bit more expensive than the industry average as 67.46% of the companies are valued more cheaply.
- The rest of the industry has a similar Price/Free Cash Flow ratio as IHG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.04 | ||
| EV/EBITDA | 18.81 |
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 14.45% in the coming years.
PEG (NY)1.65
PEG (5Y)0.37
EPS Next 2Y14.75%
EPS Next 3Y14.45%
5. IHG Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.32%, IHG has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.04, IHG pays a bit more dividend than its industry peers.
- IHG's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
- IHG has paid a dividend for at least 10 years, which is a reliable track record.
- IHG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- IHG pays out 35.62% of its income as dividend. This is a sustainable payout ratio.
DP35.62%
EPS Next 2Y14.75%
EPS Next 3Y14.45%
IHG Fundamentals: All Metrics, Ratios and Statistics
NYSE:IHG (4/24/2026, 11:51:27 AM)
146.465
+2.84 (+1.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-17 2026-02-17/bmo
Earnings (Next)05-07 2026-05-07
Inst Owners67.85%
Inst Owner Change0.15%
Ins Owners0.45%
Ins Owner ChangeN/A
Market Cap21.06B
Revenue(TTM)5.19B
Net Income(TTM)758.00M
Analysts69.63
Price Target146.86 (0.27%)
Short Float %0.19%
Short Ratio0.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend1.74
Dividend Growth(5Y)N/A
DP35.62%
Div Incr Years3
Div Non Decr Years3
Ex-Date04-10 2026-04-10 (1.259)
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)-98.43%
PT rev (3m)-98.48%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)4.21%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)111.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.33 | ||
| Fwd PE | 23.43 | ||
| P/S | 4.06 | ||
| P/FCF | 30.04 | ||
| P/OCF | 23.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.81 |
EPS(TTM)5.36
EY3.66%
EPS(NY)6.25
Fwd EY4.27%
FCF(TTM)4.88
FCFY3.33%
OCF(TTM)6.25
OCFY4.26%
SpS36.09
BVpS-19.06
TBVpS-27.1
PEG (NY)1.65
PEG (5Y)0.37
Graham Number0 (-100%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.18% | ||
| ROE | N/A | ||
| ROCE | 37.44% | ||
| ROIC | 26.31% | ||
| ROICexc | 40.39% | ||
| ROICexgc | 88.93% | ||
| OM | 23.41% | ||
| PM (TTM) | 14.61% | ||
| GM | 31.26% | ||
| FCFM | 13.51% |
ROA(3y)14.33%
ROA(5y)11.51%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)26.54%
ROIC(5y)22.11%
ROICexc(3y)45.06%
ROICexc(5y)37.45%
ROICexgc(3y)161.98%
ROICexgc(5y)130.49%
ROCE(3y)38.03%
ROCE(5y)31.68%
ROICexgc growth 3Y-1.02%
ROICexgc growth 5Y65.19%
ROICexc growth 3Y10.61%
ROICexc growth 5Y65.26%
OM growth 3Y8.19%
OM growth 5Y38.45%
PM growth 3Y14.88%
PM growth 5YN/A
GM growth 3Y3.73%
GM growth 5Y8.31%
F-Score7
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.57 | ||
| Debt/EBITDA | 3.2 | ||
| Cap/Depr | 294.03% | ||
| Cap/Sales | 3.8% | ||
| Interest Coverage | 6.01 | ||
| Cash Conversion | 70.05% | ||
| Profit Quality | 92.48% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.42 |
F-Score7
WACC8.34%
ROIC/WACC3.16
Cap/Depr(3y)178.81%
Cap/Depr(5y)147.01%
Cap/Sales(3y)2.38%
Cap/Sales(5y)2.3%
Profit Quality(3y)101.16%
Profit Quality(5y)133.78%
High Growth Momentum
Growth
EPS 1Y (TTM)16.04%
EPS 3Y21.43%
EPS 5Y74.14%
EPS Q2Q%13.51%
EPS Next Y16.59%
EPS Next 2Y14.75%
EPS Next 3Y14.45%
EPS Next 5Y12.57%
Revenue 1Y (TTM)5.4%
Revenue growth 3Y10.06%
Revenue growth 5Y16.73%
Sales Q2Q%121.76%
Revenue Next Year5.36%
Revenue Next 2Y5.44%
Revenue Next 3Y5.57%
Revenue Next 5Y-8.39%
EBIT growth 1Y16.71%
EBIT growth 3Y19.07%
EBIT growth 5Y61.62%
EBIT Next Year14.52%
EBIT Next 3Y10.45%
EBIT Next 5Y9.08%
FCF growth 1Y8.51%
FCF growth 3Y8.62%
FCF growth 5Y62.96%
OCF growth 1Y24.03%
OCF growth 3Y11.6%
OCF growth 5Y45.65%
INTERCONTINENTAL HOTELS-ADR / IHG Fundamental Analysis 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.
What is the profitability of IHG stock?
INTERCONTINENTAL HOTELS-ADR (IHG) has a profitability rating of 8 / 10.
What are the PE and PB ratios of INTERCONTINENTAL HOTELS-ADR (IHG) stock?
The Price/Earnings (PE) ratio for INTERCONTINENTAL HOTELS-ADR (IHG) is 27.33 and the Price/Book (PB) ratio is -7.68.
Can you provide the financial health for IHG stock?
The financial health rating of INTERCONTINENTAL HOTELS-ADR (IHG) is 4 / 10.