INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis

NYSE:IHG • US45857P8068

146.13 USD
+0.26 (+0.18%)
At close: Feb 13, 2026
146.13 USD
0 (0%)
After Hours: 2/13/2026, 8:17:10 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

IHG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 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. While showing a medium growth rate, IHG is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

8

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.
  • Of the past 5 years IHG 4 years were profitable.
  • IHG had a positive operating cash flow in each of the past 5 years.
IHG Yearly Net Income VS EBIT VS OCF VS FCFIHG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M 800M 1B

1.2 Ratios

  • With an excellent Return On Assets value of 15.19%, IHG belongs to the best of the industry, outperforming 92.37% of the companies in the same industry.
  • IHG has a Return On Invested Capital of 29.05%. This is amongst the best in the industry. IHG outperforms 96.18% 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 10.42%.
  • 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 RankSector 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%
IHG Yearly ROA, ROE, ROICIHG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

  • IHG has a Profit Margin of 14.65%. This is amongst the best in the industry. IHG outperforms 84.73% of its industry peers.
  • In the last couple of years the Profit Margin of IHG has grown nicely.
  • IHG has a Operating Margin of 22.34%. This is amongst the best in the industry. IHG outperforms 83.21% of its industry peers.
  • In the last couple of years the Operating Margin of IHG has grown nicely.
  • Looking at the Gross Margin, with a value of 30.43%, IHG is doing worse than 74.81% of the companies in the same industry.
  • In the last couple of years the Gross Margin of IHG has grown nicely.
Industry RankSector 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%
IHG Yearly Profit, Operating, Gross MarginsIHG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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4

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IHG is creating value.
  • IHG has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, IHG has less shares outstanding
  • IHG has a worse debt/assets ratio than last year.
IHG Yearly Shares OutstandingIHG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
IHG Yearly Total Debt VS Total AssetsIHG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

  • IHG has an Altman-Z score of 2.64. 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.
  • Looking at the Altman-Z score, with a value of 2.64, IHG is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 6.03, IHG is in the better half of the industry, outperforming 73.28% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 6.03
Altman-Z 2.64
ROIC/WACC3.43
WACC8.48%
IHG Yearly LT Debt VS Equity VS FCFIHG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B -2B 3B

2.3 Liquidity

  • A Current Ratio of 0.79 indicates that IHG may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.79, IHG is in line with its industry, outperforming 41.22% 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.
  • Looking at the Quick ratio, with a value of 0.79, IHG is in line with its industry, outperforming 43.51% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.79
Quick Ratio 0.79
IHG Yearly Current Assets VS Current LiabilitesIHG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 18.60% over the past year.
  • IHG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.39% yearly.
  • 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

  • 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 Y19.6%
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

  • 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.
IHG Yearly Revenue VS EstimatesIHG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B
IHG Yearly EPS VS EstimatesIHG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 29.64, which means the current valuation is very expensive for 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 27.97. IHG is around the same levels.
  • A Price/Forward Earnings ratio of 23.93 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.
  • IHG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.96, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 29.64
Fwd PE 23.93
IHG Price Earnings VS Forward Price EarningsIHG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 69.47% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of IHG is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 32.34
EV/EBITDA 21.01
IHG Per share dataIHG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20 30

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.
  • IHG's earnings are expected to grow with 14.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)4.01
EPS Next 2Y16.1%
EPS Next 3Y14.95%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • IHG has a Yearly Dividend Yield of 1.23%. 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 1.79.
Industry RankSector Rank
Dividend Yield 1.23%

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
IHG Yearly Dividends per shareIHG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2022 2023 2024 2025 1 2 3

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%
IHG Yearly Income VS Free CF VS DividendIHG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B
IHG Dividend Payout.IHG Dividend Payout, showing the Payout Ratio.IHG Dividend Payout.PayoutRetained Earnings

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INTERCONTINENTAL HOTELS-ADR

NYSE:IHG (2/13/2026, 8:17:10 PM)

After market: 146.13 0 (0%)

146.13

+0.26 (+0.18%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)10-23
Earnings (Next)02-17
Inst Owners68.69%
Inst Owner Change5.59%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap21.99B
Revenue(TTM)5.12B
Net Income(TTM)750.00M
Analysts70
Price Target9866.74 (6652.03%)
Short Float %0.81%
Short Ratio5.92
Dividend
Industry RankSector Rank
Dividend Yield 1.23%
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)7586.88%
PT rev (3m)7990.87%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 29.64
Fwd PE 23.93
P/S 4.29
P/FCF 32.34
P/OCF 25.16
P/B N/A
P/tB N/A
EV/EBITDA 21.01
EPS(TTM)4.93
EY3.37%
EPS(NY)6.11
Fwd EY4.18%
FCF(TTM)4.52
FCFY3.09%
OCF(TTM)5.81
OCFY3.97%
SpS34.02
BVpS-17.57
TBVpS-25.36
PEG (NY)1.51
PEG (5Y)4.01
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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 2.64
F-Score7
WACC8.48%
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 Y19.6%
EPS Next 2Y16.1%
EPS Next 3Y14.95%
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 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 29.64 and the Price/Book (PB) ratio is -8.32.


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.