INTERCONTINENTAL HOTELS-ADR (IHG)
US45857P8068 - ADR
Overall IHG gets a fundamental rating of 6 out of 10. We evaluated IHG against 135 industry peers in the Hotels, Restaurants & Leisure industry. IHG has an excellent profitability rating, but 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
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.
Each year in the past 5 years IHG had a positive operating cash flow.
1.2 Ratios
IHG's Return On Assets of 15.58% is amongst the best of the industry. IHG outperforms 93.28% of its industry peers.
With an excellent Return On Invested Capital value of 27.62%, IHG belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
IHG had an Average Return On Invested Capital over the past 3 years of 19.76%. This is significantly above the industry average of 9.90%.
The last Return On Invested Capital (27.62%) for IHG is above the 3 year average (19.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.58% | ||
| ROE | N/A | ||
| ROIC | 27.62% |
ROA(3y)10.04%
ROA(5y)6.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.76%
ROIC(5y)16.29%
1.3 Margins
Looking at the Profit Margin, with a value of 16.22%, IHG belongs to the top of the industry, outperforming 87.31% of the companies in the same industry.
In the last couple of years the Profit Margin of IHG has grown nicely.
Looking at the Operating Margin, with a value of 22.15%, IHG belongs to the top of the industry, outperforming 81.34% of the companies in the same industry.
In the last couple of years the Operating Margin of IHG has grown nicely.
IHG has a Gross Margin of 30.67%. This is in the lower half of the industry: IHG underperforms 78.36% of its industry peers.
IHG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.15% | ||
| PM (TTM) | 16.22% | ||
| GM | 30.67% |
OM growth 3Y68.41%
OM growth 5Y5.99%
PM growth 3YN/A
PM growth 5Y14.92%
GM growth 3Y13.51%
GM growth 5Y3.35%
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
IHG has less shares outstanding than it did 5 years ago.
IHG has a worse debt/assets ratio than last year.
2.2 Solvency
IHG has an Altman-Z score of 2.39. 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 2.39. This is in the better half of the industry: IHG outperforms 70.15% of its industry peers.
IHG has a debt to FCF ratio of 4.43. This is a neutral value as IHG would need 4.43 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.43, IHG is doing good in the industry, outperforming 76.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | 2.39 |
ROIC/WACC3.59
WACC7.69%
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.
Looking at the Quick ratio, with a value of 0.97, IHG is in line with its industry, outperforming 52.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
IHG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.18%, which is quite impressive.
Measured over the past 5 years, IHG shows a small growth in Earnings Per Share. The EPS has been growing by 5.41% on average per year.
Looking at the last year, IHG shows a quite strong growth in Revenue. The Revenue has grown by 18.81% in the last year.
The Revenue has been growing slightly by 1.29% on average over the past years.
EPS 1Y (TTM)34.18%
EPS 3Y128.96%
EPS 5Y5.41%
EPS growth Q2Q21.19%
Revenue 1Y (TTM)18.81%
Revenue growth 3Y24.54%
Revenue growth 5Y1.29%
Revenue growth Q2Q-46%
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 14.98% on average per year.
Based on estimates for the next years, IHG will show a small growth in Revenue. The Revenue will grow by 7.15% on average per year.
EPS Next Y17.29%
EPS Next 2Y14.49%
EPS Next 3Y13.46%
EPS Next 5Y14.98%
Revenue Next Year7.11%
Revenue Next 2Y6.41%
Revenue Next 3Y6.3%
Revenue Next 5Y7.15%
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
The Price/Earnings ratio is 26.23, 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 28.60. IHG is around the same levels.
A Price/Forward Earnings ratio of 22.38 indicates a rather expensive valuation of IHG.
The rest of the industry has a similar Price/Forward Earnings ratio as IHG.
IHG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.23 | ||
| Fwd PE | 22.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IHG indicates a slightly more expensive valuation: IHG is more expensive than 62.69% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IHG indicates a somewhat cheap valuation: IHG is cheaper than 70.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.18 | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
IHG's 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 13.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)4.84
EPS Next 2Y14.49%
EPS Next 3Y13.46%
5. Dividend
5.1 Amount
IHG has a Yearly Dividend Yield of 1.57%.
Compared to an average industry Dividend Yield of 2.75, IHG pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, IHG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
The dividend of IHG has a limited annual growth rate of 5.49%.
IHG has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of IHG decreased recently.
Dividend Growth(5Y)5.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
32.67% of the earnings are spent on dividend by IHG. This is a low number and sustainable payout ratio.
The dividend of IHG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.67%
EPS Next 2Y14.49%
EPS Next 3Y13.46%
INTERCONTINENTAL HOTELS-ADR
NYSE:IHG (5/17/2024, 7:05:45 PM)
After market: 100.45 0 (0%)100.45
+0.85 (+0.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.23 | ||
| Fwd PE | 22.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.52
PEG (5Y)4.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.58% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.15% | ||
| PM (TTM) | 16.22% | ||
| GM | 30.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)34.18%
EPS 3Y128.96%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.81%
Revenue growth 3Y24.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y