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INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis

NYSE:IHG - New York Stock Exchange, Inc. - US45857P8068 - ADR - Currency: USD

118.02  +0.39 (+0.33%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to IHG. IHG was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. IHG scores excellent on profitability, but there are some minor concerns on its financial health. IHG is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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8

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

1.2 Ratios

The Return On Assets of IHG (13.23%) is better than 90.37% of its industry peers.
IHG has a Return On Invested Capital of 26.63%. This is amongst the best in the industry. IHG outperforms 95.56% 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 14.12%.
The 3 year average ROIC (24.68%) for IHG is below the current ROIC(26.63%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 13.23%
ROE N/A
ROIC 26.63%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

IHG has a Profit Margin of 12.76%. This is amongst the best in the industry. IHG outperforms 80.74% of its industry peers.
In the last couple of years the Profit Margin of IHG has grown nicely.
With an excellent Operating Margin value of 21.15%, IHG belongs to the best of the industry, outperforming 82.22% 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 (29.56%) is worse than 77.78% of its industry peers.
IHG's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 21.15%
PM (TTM) 12.76%
GM 29.56%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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

An Altman-Z score of 2.46 indicates that IHG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.46, IHG is in the better half of the industry, outperforming 68.89% of the companies in the same industry.
IHG has a debt to FCF ratio of 5.71. This is a neutral value as IHG would need 5.71 years to pay back of all of its debts.
IHG has a Debt to FCF ratio of 5.71. This is in the better half of the industry: IHG outperforms 76.30% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.71
Altman-Z 2.46
ROIC/WACC3.23
WACC8.24%
IHG Yearly LT Debt VS Equity VS FCFIHG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B -2B 3B

2.3 Liquidity

IHG has a Current Ratio of 0.97. 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 (0.97) which is comparable to the rest of the industry.
IHG has a Quick Ratio of 0.97. This is a bad value and indicates that IHG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of IHG (0.97) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.97
Quick Ratio 0.97
IHG Yearly Current Assets VS Current LiabilitesIHG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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5

3. Growth

3.1 Past

IHG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.99%, which is quite good.
IHG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.39% yearly.
IHG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.47%.
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)14.99%
EPS 3Y43.24%
EPS 5Y7.39%
EPS Q2Q%18.32%
Revenue 1Y (TTM)6.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.27%

3.2 Future

The Earnings Per Share is expected to grow by 17.10% on average over the next years. This is quite good.
IHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.87% yearly.
EPS Next Y17.18%
EPS Next 2Y15.15%
EPS Next 3Y14.28%
EPS Next 5Y17.1%
Revenue Next Year6.28%
Revenue Next 2Y6.19%
Revenue Next 3Y6.11%
Revenue Next 5Y7.87%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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4

4. Valuation

4.1 Price/Earnings Ratio

IHG is valuated quite expensively with a Price/Earnings ratio of 26.17.
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 26.03. IHG is around the same levels.
The Price/Forward Earnings ratio is 22.35, which indicates a rather expensive current valuation of IHG.
IHG's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, IHG is valued at the same level.
Industry RankSector Rank
PE 26.17
Fwd PE 22.35
IHG Price Earnings VS Forward Price EarningsIHG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

65.19% 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 62.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 28.22
EV/EBITDA 18.84
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

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 14.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)3.54
EPS Next 2Y15.15%
EPS Next 3Y14.28%

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3

5. Dividend

5.1 Amount

IHG has a Yearly Dividend Yield of 1.40%.
IHG's Dividend Yield is a higher than the industry average which is at 3.56.
Compared to an average S&P500 Dividend Yield of 2.36, IHG's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.4%

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
IHG Yearly Dividends per shareIHG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2022 2023 2024 2025 1 2 3

5.3 Sustainability

IHG pays out 41.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.24%
EPS Next 2Y15.15%
EPS Next 3Y14.28%
IHG Yearly Income VS Free CF VS DividendIHG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 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 (5/22/2025, 10:04:53 AM)

118.02

+0.39 (+0.33%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)05-08 2025-05-08
Earnings (Next)08-07 2025-08-07
Inst Owners74.39%
Inst Owner Change4.37%
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap18.23B
Analysts52
Price Target126.4 (7.1%)
Short Float %0.82%
Short Ratio4.5
Dividend
Industry RankSector Rank
Dividend Yield 1.4%
Yearly Dividend1.6
Dividend Growth(5Y)-16.62%
DP41.24%
Div Incr Years2
Div Non Decr Years2
Ex-Date04-04 2025-04-04 (1.144)
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)-0.57%
PT rev (3m)6.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.29%
EPS NY rev (3m)-4.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.63%
Valuation
Industry RankSector Rank
PE 26.17
Fwd PE 22.35
P/S 3.7
P/FCF 28.22
P/OCF 25.18
P/B N/A
P/tB N/A
EV/EBITDA 18.84
EPS(TTM)4.51
EY3.82%
EPS(NY)5.28
Fwd EY4.47%
FCF(TTM)4.18
FCFY3.54%
OCF(TTM)4.69
OCFY3.97%
SpS31.87
BVpS-14.97
TBVpS-21.71
PEG (NY)1.52
PEG (5Y)3.54
Profitability
Industry RankSector Rank
ROA 13.23%
ROE N/A
ROCE 36.91%
ROIC 26.63%
ROICexc 41.6%
ROICexgc 98.42%
OM 21.15%
PM (TTM) 12.76%
GM 29.56%
FCFM 13.12%
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%
ROICexcg growth 3Y8.62%
ROICexcg 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-Score5
Asset Turnover1.04
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.71
Debt/EBITDA 2.95
Cap/Depr 120%
Cap/Sales 1.58%
Interest Coverage 6.12
Cash Conversion 65.46%
Profit Quality 102.87%
Current Ratio 0.97
Quick Ratio 0.97
Altman-Z 2.46
F-Score5
WACC8.24%
ROIC/WACC3.23
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)14.99%
EPS 3Y43.24%
EPS 5Y7.39%
EPS Q2Q%18.32%
EPS Next Y17.18%
EPS Next 2Y15.15%
EPS Next 3Y14.28%
EPS Next 5Y17.1%
Revenue 1Y (TTM)6.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.27%
Revenue Next Year6.28%
Revenue Next 2Y6.19%
Revenue Next 3Y6.11%
Revenue Next 5Y7.87%
EBIT growth 1Y1.66%
EBIT growth 3Y25.64%
EBIT growth 5Y5.15%
EBIT Next Year18.32%
EBIT Next 3Y11.27%
EBIT Next 5Y10.2%
FCF growth 1Y-20.35%
FCF growth 3Y3.42%
FCF growth 5Y6.39%
OCF growth 1Y-18.92%
OCF growth 3Y4.41%
OCF growth 5Y2.09%