INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IHG - US45857P8068 - ADR
134.18 USD
-1.47 (-1.08%)
IHG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. While IHG has a great profitability rating, 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.
In the past 5 years IHG always reported a positive cash flow from operatings.
1.2 Ratios
IHG has a better Return On Assets (15.19%) than 91.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 29.05%, IHG belongs to the top of the industry, outperforming 96.21% of the companies in the same industry.
IHG had an Average Return On Invested Capital over the past 3 years of 24.68%. This is significantly above the industry average of 10.42%.
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
IHG has a better Profit Margin (14.65%) than 84.85% 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 22.34%, IHG belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
IHG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 30.43%, IHG is not doing good in the industry: 75.76% of the companies in the same industry are doing better.
IHG's Gross Margin has improved in the last couple of years.
| 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.
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
An Altman-Z score of 2.52 indicates that IHG is not a great score, but indicates only limited risk for bankruptcy at the moment.
IHG's Altman-Z score of 2.52 is fine compared to the rest of the industry. IHG outperforms 68.18% 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.
IHG has a better Debt to FCF ratio (6.03) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.52 |
ROIC/WACC3.45
WACC8.42%
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 42.42% 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.
IHG has a Quick ratio (0.79) which is in line with its industry peers.
| 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.
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%.
The Revenue has been growing slightly by 1.25% on average over the past years.
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 17.69% on average per year.
IHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.45% yearly.
EPS Next Y20.74%
EPS Next 2Y16.02%
EPS Next 3Y14.86%
EPS Next 5Y17.69%
Revenue Next Year5.77%
Revenue Next 2Y5.99%
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.
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
A Price/Earnings ratio of 27.27 indicates a quite expensive valuation of IHG.
IHG's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of IHG to the average of the S&P500 Index (26.31), we can say IHG is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.06, the valuation of IHG can be described as rather expensive.
IHG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, IHG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.27 | ||
| Fwd PE | 22.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IHG is valued a bit more expensive than 68.94% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as IHG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.76 | ||
| EV/EBITDA | 19.78 |
4.3 Compensation for Growth
The 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 14.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)3.69
EPS Next 2Y16.02%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
IHG has a Yearly Dividend Yield of 1.28%. 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 6.73.
With a Dividend Yield of 1.28, IHG pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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.
The dividend of IHG decreased in the last 3 years.
Dividend Growth(5Y)-16.62%
Div Incr Years2
Div Non Decr Years2
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 2Y16.02%
EPS Next 3Y14.86%
NYSE:IHG (11/28/2025, 7:39:04 PM)
134.18
-1.47 (-1.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners68.94%
Inst Owner Change-0.42%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap20.20B
Revenue(TTM)5.12B
Net Income(TTM)750.00M
Analysts68.46
Price Target121.88 (-9.17%)
Short Float %0.67%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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)-1.58%
PT rev (3m)-1.98%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.93%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.27 | ||
| Fwd PE | 22.06 | ||
| P/S | 3.95 | ||
| P/FCF | 29.76 | ||
| P/OCF | 23.16 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.78 |
EPS(TTM)4.92
EY3.67%
EPS(NY)6.08
Fwd EY4.53%
FCF(TTM)4.51
FCFY3.36%
OCF(TTM)5.79
OCFY4.32%
SpS33.95
BVpS-17.53
TBVpS-25.3
PEG (NY)1.31
PEG (5Y)3.69
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 | 2.52 |
F-Score7
WACC8.42%
ROIC/WACC3.45
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 Y20.74%
EPS Next 2Y16.02%
EPS Next 3Y14.86%
EPS Next 5Y17.69%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.05%
Revenue Next Year5.77%
Revenue Next 2Y5.99%
Revenue Next 3Y6.07%
Revenue Next 5Y7.45%
EBIT growth 1Y15.32%
EBIT growth 3Y25.64%
EBIT growth 5Y5.15%
EBIT Next Year18.32%
EBIT Next 3Y11.04%
EBIT Next 5Y10.93%
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 27.27 and the Price/Book (PB) ratio is -7.65.
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 20.74% in the next year.