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INTERCONTINENTAL HOTELS-ADR (IHG) Stock Fundamental Analysis

NYSE:IHG - US45857P8068 - ADR

122.42 USD
+1.6 (+1.32%)
Last: 8/27/2025, 8:04:00 PM
122.42 USD
0 (0%)
After Hours: 8/27/2025, 8:04:00 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to IHG. IHG was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. While IHG belongs to the best of the industry regarding profitability, 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.
In the past 5 years IHG always reported a positive cash flow from operatings.
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

IHG has a better Return On Assets (15.19%) than 93.13% of its industry peers.
IHG's Return On Invested Capital of 29.05% is amongst the best of the industry. IHG outperforms 96.18% 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 15.87%.
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 86.26% of its industry peers.
IHG's Profit Margin has improved in the last couple of years.
IHG's Operating Margin of 22.34% is amongst the best of the industry. IHG outperforms 83.97% of its industry peers.
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: 76.34% of the companies in the same industry are doing better.
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

IHG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
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

IHG has an Altman-Z score of 2.36. 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.
The Altman-Z score of IHG (2.36) is better than 62.60% 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.
The Debt to FCF ratio of IHG (6.03) is better than 74.05% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 6.03
Altman-Z 2.36
ROIC/WACC3.51
WACC8.28%
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.
Looking at the Current ratio, with a value of 0.79, IHG is in line with its industry, outperforming 42.75% 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 comparable to the rest of the 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.
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.
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 15.12% on average per year.
The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y19.51%
EPS Next 2Y15.65%
EPS Next 3Y14.39%
EPS Next 5Y15.12%
Revenue Next Year6.11%
Revenue Next 2Y6.15%
Revenue Next 3Y5.93%
Revenue Next 5Y7.54%

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.
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 25.19, the valuation of IHG can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of IHG indicates a somewhat cheap valuation: IHG is cheaper than 63.36% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of IHG to the average of the S&P500 Index (27.14), we can say IHG is valued inline with the index average.
A Price/Forward Earnings ratio of 20.51 indicates a rather expensive valuation of IHG.
Based on the Price/Forward Earnings ratio, IHG is valued a bit cheaper than 61.07% of the companies in the same industry.
IHG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.80.
Industry RankSector Rank
PE 25.19
Fwd PE 20.51
IHG Price Earnings VS Forward Price EarningsIHG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, IHG is valued a bit more expensive than the industry average as 60.31% 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 64.89% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 27.5
EV/EBITDA 18.13
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.
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 14.39% in the coming years.
PEG (NY)1.29
PEG (5Y)3.41
EPS Next 2Y15.65%
EPS Next 3Y14.39%

4

5. Dividend

5.1 Amount

IHG has a Yearly Dividend Yield of 1.46%.
IHG's Dividend Yield is a higher than the industry average which is at 4.19.
IHG's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.46%

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.
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

35.60% of the earnings are spent on dividend by IHG. This is a low number and sustainable payout ratio.
DP35.6%
EPS Next 2Y15.65%
EPS Next 3Y14.39%
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 (8/27/2025, 8:04:00 PM)

After market: 122.42 0 (0%)

122.42

+1.6 (+1.32%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)08-07 2025-08-07/bmo
Earnings (Next)10-23 2025-10-23
Inst Owners69.35%
Inst Owner Change3.31%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap18.70B
Analysts52
Price Target124.34 (1.57%)
Short Float %0.97%
Short Ratio6.23
Dividend
Industry RankSector Rank
Dividend Yield 1.46%
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)1.45%
PT rev (3m)-1.63%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.96%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.16%
Valuation
Industry RankSector Rank
PE 25.19
Fwd PE 20.51
P/S 3.65
P/FCF 27.5
P/OCF 21.4
P/B N/A
P/tB N/A
EV/EBITDA 18.13
EPS(TTM)4.86
EY3.97%
EPS(NY)5.97
Fwd EY4.88%
FCF(TTM)4.45
FCFY3.64%
OCF(TTM)5.72
OCFY4.67%
SpS33.51
BVpS-17.31
TBVpS-24.98
PEG (NY)1.29
PEG (5Y)3.41
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 2.36
F-Score7
WACC8.28%
ROIC/WACC3.51
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 Y19.51%
EPS Next 2Y15.65%
EPS Next 3Y14.39%
EPS Next 5Y15.12%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y19.2%
Revenue growth 5Y1.25%
Sales Q2Q%6.05%
Revenue Next Year6.11%
Revenue Next 2Y6.15%
Revenue Next 3Y5.93%
Revenue Next 5Y7.54%
EBIT growth 1Y15.32%
EBIT growth 3Y25.64%
EBIT growth 5Y5.15%
EBIT Next Year18.06%
EBIT Next 3Y11.15%
EBIT Next 5Y10.43%
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%