INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis
USA - NYSE:IHG - US45857P8068 - ADR
123.34 USD
-0.08 (-0.06%)
Taking everything into account, IHG scores 5 out of 10 in our fundamental rating. IHG was compared to 133 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.
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's Return On Assets of 15.19% is amongst the best of the industry. IHG outperforms 92.48% of its industry peers.
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 10.67%.
The 3 year average ROIC (24.68%) for IHG is below the current ROIC(29.05%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 14.65%, IHG belongs to the top of the industry, outperforming 87.22% of the companies in the same industry.
IHG's Profit Margin has improved in the last couple of years.
IHG has a better Operating Margin (22.34%) than 84.21% 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 76.69% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IHG is creating value.
The number of shares outstanding for IHG has been reduced compared to 1 year ago.
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 2.32. 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 (2.32) than 63.16% of its industry peers.
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 72.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.32 |
ROIC/WACC3.49
WACC8.32%
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 (0.79) which is comparable to the rest of the industry.
IHG has a Quick 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 Quick ratio, with a value of 0.79, IHG is in line with its industry, outperforming 45.86% 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.
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.
IHG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.25% yearly.
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 15.61% yearly.
IHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.61% yearly.
EPS Next Y19.68%
EPS Next 2Y15.69%
EPS Next 3Y14.43%
EPS Next 5Y15.61%
Revenue Next Year5.56%
Revenue Next 2Y5.99%
Revenue Next 3Y6.04%
Revenue Next 5Y6.61%
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
IHG is valuated rather expensively with a Price/Earnings ratio of 24.09.
Compared to the rest of the industry, the Price/Earnings ratio of IHG indicates a somewhat cheap valuation: IHG is cheaper than 60.90% of the companies listed in the same industry.
IHG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.62, IHG is valued on the expensive side.
61.65% of the companies in the same industry are more expensive than IHG, based on the Price/Forward Earnings ratio.
IHG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 19.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IHG is valued a bit more expensive than the industry average as 63.16% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, IHG is valued a bit cheaper than the industry average as 63.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.32 | ||
| EV/EBITDA | 17.67 |
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 14.43% in the coming years.
PEG (NY)1.22
PEG (5Y)3.26
EPS Next 2Y15.69%
EPS Next 3Y14.43%
5. Dividend
5.1 Amount
IHG has a Yearly Dividend Yield of 1.38%.
IHG's Dividend Yield is a higher than the industry average which is at 3.90.
Compared to an average S&P500 Dividend Yield of 2.31, IHG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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
5.3 Sustainability
IHG pays out 35.60% of its income as dividend. This is a sustainable payout ratio.
DP35.6%
EPS Next 2Y15.69%
EPS Next 3Y14.43%
NYSE:IHG (10/30/2025, 11:20:52 AM)
123.34
-0.08 (-0.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners68.94%
Inst Owner Change0.09%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap17.90B
Revenue(TTM)5.12B
Net Income(TTM)750.00M
Analysts67.69
Price Target121.95 (-1.13%)
Short Float %0.74%
Short Ratio6.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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)-2.75%
PT rev (3m)1.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.2%
EPS NY rev (3m)5.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 19.62 | ||
| P/S | 3.5 | ||
| P/FCF | 26.32 | ||
| P/OCF | 20.48 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.67 |
EPS(TTM)5.12
EY4.15%
EPS(NY)6.29
Fwd EY5.1%
FCF(TTM)4.69
FCFY3.8%
OCF(TTM)6.02
OCFY4.88%
SpS35.28
BVpS-18.22
TBVpS-26.3
PEG (NY)1.22
PEG (5Y)3.26
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 | 2.32 |
F-Score7
WACC8.32%
ROIC/WACC3.49
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 Y19.68%
EPS Next 2Y15.69%
EPS Next 3Y14.43%
EPS Next 5Y15.61%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.05%
Revenue Next Year5.56%
Revenue Next 2Y5.99%
Revenue Next 3Y6.04%
Revenue Next 5Y6.61%
EBIT growth 1Y15.32%
EBIT growth 3Y25.64%
EBIT growth 5Y5.15%
EBIT Next Year18.32%
EBIT Next 3Y11.04%
EBIT Next 5Y11.03%
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 24.09 and the Price/Book (PB) ratio is -6.77.
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 19.68% in the next year.