INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IHG - US45857P8068 - ADR
139.21 USD
+1.29 (+0.94%)
139.21 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. While IHG has a great profitability rating, there are some minor concerns on its financial health. IHG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- IHG had positive earnings in the past year.
- IHG had a positive operating cash flow in the past year.
- IHG had positive earnings in 4 of the past 5 years.
- In the past 5 years IHG always reported a positive cash flow from operatings.
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's Return On Invested Capital of 29.05% is amongst the best of the industry. IHG outperforms 96.24% 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 10.34%.
- 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
- The Profit Margin of IHG (14.65%) is better than 84.96% of its industry peers.
- IHG's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 22.34%, IHG belongs to the top of the industry, outperforming 83.46% of the companies in the same industry.
- In the last couple of years the Operating Margin of IHG has grown nicely.
- The Gross Margin of IHG (30.43%) is worse than 74.44% 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.
- Compared to 1 year ago, IHG has less shares outstanding
- 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 2.56. 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 Altman-Z score of 2.56. This is in the better half of the industry: IHG outperforms 66.92% 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.
- Looking at the Debt to FCF ratio, with a value of 6.03, IHG is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.56 |
ROIC/WACC3.44
WACC8.45%
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 42.86% of its industry peers.
- A Quick Ratio of 0.79 indicates that IHG may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.79, IHG is in line with its industry, outperforming 45.11% of the companies in the same industry.
| 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.
- Looking at the last year, IHG shows a quite strong growth in Revenue. The Revenue has grown by 8.47% in the last year.
- 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
- The Earnings Per Share is expected to grow by 18.22% on average over the next years. This is quite good.
- 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 Y19.8%
EPS Next 2Y16.19%
EPS Next 3Y15%
EPS Next 5Y18.22%
Revenue Next Year5.77%
Revenue Next 2Y6.03%
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.
- 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
- Based on the Price/Earnings ratio of 28.24, the valuation of IHG can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as IHG.
- The average S&P500 Price/Earnings ratio is at 27.38. IHG is around the same levels.
- A Price/Forward Earnings ratio of 22.77 indicates a rather expensive valuation of IHG.
- The rest of the industry has a similar Price/Forward Earnings ratio as IHG.
- When comparing the Price/Forward Earnings ratio of IHG to the average of the S&P500 Index (24.29), we can say IHG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.24 | ||
| Fwd PE | 22.77 |
4.2 Price Multiples
- 67.67% 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 60.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.82 | ||
| EV/EBITDA | 20.19 |
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 15.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.43
PEG (5Y)3.82
EPS Next 2Y16.19%
EPS Next 3Y15%
5. Dividend
5.1 Amount
- IHG has a Yearly Dividend Yield of 1.27%.
- Compared to an average industry Dividend Yield of 1.19, IHG pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.84, IHG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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
- 35.60% of the earnings are spent on dividend by IHG. This is a low number and sustainable payout ratio.
DP35.6%
EPS Next 2Y16.19%
EPS Next 3Y15%
139.21
+1.29 (+0.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)10-23 2025-10-23
Earnings (Next)02-17 2026-02-17/amc
Inst Owners68.69%
Inst Owner Change0.03%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap20.96B
Revenue(TTM)5.12B
Net Income(TTM)750.00M
Analysts70
Price Target9685.78 (6857.68%)
Short Float %0.65%
Short Ratio5.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend1.6
Dividend Growth(5Y)-16.62%
DP35.6%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)7715.55%
PT rev (3m)7721.21%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-3.5%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.24 | ||
| Fwd PE | 22.77 | ||
| P/S | 4.09 | ||
| P/FCF | 30.82 | ||
| P/OCF | 23.98 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.19 |
EPS(TTM)4.93
EY3.54%
EPS(NY)6.11
Fwd EY4.39%
FCF(TTM)4.52
FCFY3.24%
OCF(TTM)5.81
OCFY4.17%
SpS34.01
BVpS-17.56
TBVpS-25.35
PEG (NY)1.43
PEG (5Y)3.82
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 | 2.56 |
F-Score7
WACC8.45%
ROIC/WACC3.44
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 Y19.8%
EPS Next 2Y16.19%
EPS Next 3Y15%
EPS Next 5Y18.22%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.05%
Revenue Next Year5.77%
Revenue Next 2Y6.03%
Revenue Next 3Y6.07%
Revenue Next 5Y7.45%
EBIT growth 1Y15.32%
EBIT growth 3Y25.64%
EBIT growth 5Y5.15%
EBIT Next Year19.44%
EBIT Next 3Y11.71%
EBIT Next 5Y10.81%
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 for IHG stock?
ChartMill assigns a valuation rating of 4 / 10 to INTERCONTINENTAL HOTELS-ADR (IHG). This can be considered as Fairly Valued.
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 28.24 and the Price/Book (PB) ratio is -7.93.
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 19.8% in the next year.