INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis
USA - NYSE:IHG - US45857P8068 - ADR
127.14 USD
-1.78 (-1.38%)
127.14 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 has a great profitability rating, 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.
IHG had positive earnings in 4 of the past 5 years.
IHG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IHG has a Return On Assets of 15.19%. This is amongst the best in the industry. IHG outperforms 91.67% of its industry peers.
IHG has a better Return On Invested Capital (29.05%) than 96.21% 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 10.59%.
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
With an excellent Profit Margin value of 14.65%, IHG belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
In the last couple of years the Profit Margin of IHG has grown nicely.
IHG has a better Operating Margin (22.34%) than 82.58% of its industry peers.
IHG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.43%, IHG is doing worse than 76.52% of the companies in the same industry.
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
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
IHG has a worse debt/assets ratio than last year.
2.2 Solvency
IHG has an Altman-Z score of 2.44. 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 (2.44) than 68.18% 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.
With a decent Debt to FCF ratio value of 6.03, IHG is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.44 |
ROIC/WACC3.47
WACC8.38%
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.
Looking at the Current ratio, with a value of 0.79, IHG is in line with its industry, outperforming 40.91% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that IHG may have some problems paying its short term obligations.
With a Quick ratio value of 0.79, IHG perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| 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.
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.
IHG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.47%.
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.
Based on estimates for the next years, IHG will show a small growth in Revenue. The Revenue will grow by 7.45% on average per year.
EPS Next Y20.74%
EPS Next 2Y16.02%
EPS Next 3Y14.86%
EPS Next 5Y17.69%
Revenue Next Year5.77%
Revenue Next 2Y5.99%
Revenue Next 3Y6.07%
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 25.84 indicates a quite expensive valuation of IHG.
IHG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.56, IHG is valued at the same level.
A Price/Forward Earnings ratio of 20.90 indicates a rather expensive valuation of IHG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IHG is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.62. IHG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.84 | ||
| Fwd PE | 20.9 |
4.2 Price Multiples
IHG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. IHG is more expensive than 67.42% of the companies in the same industry.
IHG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.2 | ||
| EV/EBITDA | 18.94 |
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 14.86% in the coming years.
PEG (NY)1.25
PEG (5Y)3.49
EPS Next 2Y16.02%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
IHG has a Yearly Dividend Yield of 1.31%.
IHG's Dividend Yield is a higher than the industry average which is at 4.57.
With a Dividend Yield of 1.31, IHG pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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.
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
35.60% of the earnings are spent on dividend by IHG. This is a low number and sustainable payout ratio.
DP35.6%
EPS Next 2Y16.02%
EPS Next 3Y14.86%
127.14
-1.78 (-1.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners68.94%
Inst Owner Change-0.42%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap19.18B
Revenue(TTM)5.12B
Net Income(TTM)750.00M
Analysts68.46
Price Target122.94 (-3.3%)
Short Float %0.74%
Short Ratio6.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)-0.73%
PT rev (3m)0.91%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.93%
EPS NY rev (3m)4.74%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.84 | ||
| Fwd PE | 20.9 | ||
| P/S | 3.75 | ||
| P/FCF | 28.2 | ||
| P/OCF | 21.94 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.94 |
EPS(TTM)4.92
EY3.87%
EPS(NY)6.08
Fwd EY4.78%
FCF(TTM)4.51
FCFY3.55%
OCF(TTM)5.79
OCFY4.56%
SpS33.95
BVpS-17.53
TBVpS-25.3
PEG (NY)1.25
PEG (5Y)3.49
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 | 2.44 |
F-Score7
WACC8.38%
ROIC/WACC3.47
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 Y20.74%
EPS Next 2Y16.02%
EPS Next 3Y14.86%
EPS Next 5Y17.69%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.05%
Revenue Next Year5.77%
Revenue Next 2Y5.99%
Revenue Next 3Y6.07%
Revenue Next 5Y7.45%
EBIT growth 1Y15.32%
EBIT growth 3Y25.64%
EBIT growth 5Y5.15%
EBIT Next Year18.32%
EBIT Next 3Y11.04%
EBIT Next 5Y10.93%
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 25.84 and the Price/Book (PB) ratio is -7.25.
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 20.74% in the next year.