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INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis

USA - NYSE:IHG - US45857P8068 - ADR

123.765 USD
+0.56 (+0.46%)
Last: 10/8/2025, 10:10:41 AM
Fundamental Rating

5

Taking everything into account, IHG scores 5 out of 10 in our fundamental rating. IHG was compared to 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.


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

1.2 Ratios

The Return On Assets of IHG (15.19%) is better than 92.59% of its industry peers.
IHG has a better Return On Invested Capital (29.05%) than 96.30% 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 15.70%.
The 3 year average ROIC (24.68%) for IHG is below the current ROIC(29.05%), indicating increased profibility in the last year.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

IHG's Profit Margin of 14.65% is amongst the best of the industry. IHG outperforms 86.67% of its industry peers.
In the last couple of years the Profit Margin of IHG has grown nicely.
Looking at the Operating Margin, with a value of 22.34%, IHG belongs to the top of the industry, outperforming 84.44% of the companies in the same industry.
IHG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.43%, IHG is doing worse than 76.30% 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

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.
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.
Compared to 1 year ago, IHG has a worse debt to assets ratio.
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 2.38 indicates that IHG is not a great score, but indicates only limited risk for bankruptcy at the moment.
IHG has a Altman-Z score of 2.38. This is in the better half of the industry: IHG outperforms 64.44% 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 71.11% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 6.03
Altman-Z 2.38
ROIC/WACC3.5
WACC8.31%
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

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 41.48% of its industry peers.
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 46.67% 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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 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.
IHG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.47%.
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

Based on estimates for the next years, IHG will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.61% on average per year.
The Revenue is expected to grow by 6.61% on average over the next years.
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

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 10

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 25.26, the valuation of IHG can be described as expensive.
IHG's Price/Earnings ratio is in line with the industry average.
IHG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.76.
A Price/Forward Earnings ratio of 20.55 indicates a rather expensive 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 23.21, IHG is valued at the same level.
Industry RankSector Rank
PE 25.26
Fwd PE 20.55
IHG Price Earnings VS Forward Price EarningsIHG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, IHG is valued a bit more expensive than the industry average as 63.70% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IHG indicates a somewhat cheap valuation: IHG is cheaper than 62.96% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 27.58
EV/EBITDA 18.3
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.
IHG has an outstanding profitability rating, which may justify a higher PE ratio.
IHG's earnings are expected to grow with 14.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)3.42
EPS Next 2Y15.69%
EPS Next 3Y14.43%

4

5. Dividend

5.1 Amount

IHG has a Yearly Dividend Yield of 1.43%. 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 6.99.
Compared to an average S&P500 Dividend Yield of 2.44, IHG's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.43%

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 2015 2016 2017 2018 2019 2020 2022 2023 2024 2025 1 2 3

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 2Y15.69%
EPS Next 3Y14.43%
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

INTERCONTINENTAL HOTELS-ADR

NYSE:IHG (10/8/2025, 10:10:41 AM)

123.765

+0.56 (+0.46%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)08-07 2025-08-07/bmo
Earnings (Next)10-23 2025-10-23
Inst Owners68.94%
Inst Owner Change0%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap18.75B
Analysts67.69
Price Target123.84 (0.06%)
Short Float %0.84%
Short Ratio6.83
Dividend
Industry RankSector Rank
Dividend Yield 1.43%
Yearly Dividend1.6
Dividend Growth(5Y)-16.62%
DP35.6%
Div Incr Years2
Div Non Decr Years2
Ex-Date08-22 2025-08-22 (0.586)
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)-0.4%
PT rev (3m)-4.22%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.91%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.67%
Valuation
Industry RankSector Rank
PE 25.26
Fwd PE 20.55
P/S 3.66
P/FCF 27.58
P/OCF 21.45
P/B N/A
P/tB N/A
EV/EBITDA 18.3
EPS(TTM)4.9
EY3.96%
EPS(NY)6.02
Fwd EY4.87%
FCF(TTM)4.49
FCFY3.63%
OCF(TTM)5.77
OCFY4.66%
SpS33.79
BVpS-17.45
TBVpS-25.19
PEG (NY)1.28
PEG (5Y)3.42
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%
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-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 2.38
F-Score7
WACC8.31%
ROIC/WACC3.5
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%