DB:IC1B

Stock Analysis Report

InterContinental Hotels Group

Executive Summary

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China.

Snowflake

Fundamentals

Average dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has InterContinental Hotels Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

IC1B

3.7%

DE Hospitality

1.4%

DE Market


1 Year Return

5.6%

IC1B

-16.3%

DE Hospitality

3.7%

DE Market

Return vs Industry: IC1B exceeded the German Hospitality industry which returned -16.3% over the past year.

Return vs Market: IC1B exceeded the German Market which returned 3.7% over the past year.


Shareholder returns

IC1BIndustryMarket
7 Day0.9%3.7%1.4%
30 Day-4.4%21.6%1.3%
90 Day-12.2%26.1%3.4%
1 Year7.6%5.6%-10.6%-16.3%7.0%3.7%
3 Year47.8%34.7%16.0%0.5%18.5%8.3%
5 Year64.9%44.2%35.7%8.7%42.2%22.9%

Price Volatility Vs. Market

How volatile is InterContinental Hotels Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is InterContinental Hotels Group undervalued compared to its fair value and its price relative to the market?

21.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: IC1B (€54) is trading below our estimate of fair value (€69.09)

Significantly Undervalued: IC1B is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IC1B is good value based on its PE Ratio (24.9x) compared to the Hospitality industry average (32.3x).

PE vs Market: IC1B is poor value based on its PE Ratio (24.9x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: IC1B is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: IC1B has negative assets, so we can't compare its PB Ratio to the DE Hospitality industry average.


Next Steps

Future Growth

How is InterContinental Hotels Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IC1B's forecast earnings growth (11.2% per year) is above the savings rate (0.2%).

Earnings vs Market: IC1B's earnings (11.2% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: IC1B's earnings are forecast to grow, but not significantly.

Revenue vs Market: IC1B's revenue (2.8% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: IC1B's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if IC1B's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has InterContinental Hotels Group performed over the past 5 years?

-5.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IC1B's earnings have declined by -5.5% per year over the past 5 years.

Accelerating Growth: IC1B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IC1B had negative earnings growth (-19.2%) over the past year, making it difficult to compare to the Hospitality industry average (-28.4%).


Return on Equity

High ROE: IC1B's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: IC1B has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: IC1B's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is InterContinental Hotels Group's financial position?


Financial Position Analysis

Short Term Liabilities: IC1B has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: IC1B has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: IC1B has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: IC1B's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: IC1B's debt is well covered by operating cash flow (23.5%).

Interest Coverage: IC1B's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet

Inventory Level: IC1B has a high level of physical assets or inventory.

Debt Coverage by Assets: IC1B has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is InterContinental Hotels Group's current dividend yield, its reliability and sustainability?

2.07%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.5%markettop25%3.8%industryaverage6.0%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IC1B's dividend (2.07%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: IC1B's dividend (2.07%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: IC1B's dividend payments have been volatile in the past 10 years.

Growing Dividend: IC1B's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.3%), IC1B's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IC1B's dividends in 3 years are forecast to be well covered by earnings (41.5% payout ratio).


Next Steps

Management

What is the CEO of InterContinental Hotels Group's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Keith Barr (48yo)

2.3yrs

Tenure

US$3,093,000

Compensation

Mr. Keith Barr has been the Chief Executive Officer of Intercontinental Hotels Group plc since July 1, 2017. Mr. Barr served as the Chief Commercial Officer of Intercontinental Hotels Group plc since May 2 ...


CEO Compensation Analysis

Compensation vs. Market: Keith has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Keith's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.1yrs

Average Tenure

50.5yo

Average Age

Experienced Management: IC1B's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

57yo

Average Age

Experienced Board: IC1B's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Elie Maalouf

    CEO of the Americas & Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$2.29m
  • Keith Barr (48yo)

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: US$3.09m
  • George Turner (48yo)

    Chief Commercial & Technology Officer

    • Tenure: 0.7yrs
  • Paul Edgecliffe-Johnson

    CFO, Group Head of Strategy & Executive Director

    • Tenure: 5.8yrs
    • Compensation: US$2.39m
  • Claire Bennett (53yo)

    Chief Marketing Officer

    • Tenure: 2yrs
  • Michael Torres

    Chief Communications Officer & VP of Corporate Communications - Americas Region

    • Tenure: 0yrs
  • Ranjay Radhakrishnan

    Chief Human Resources Officer

    • Tenure: 2.8yrs
  • Heather Wood

    VP & Head of Investor Relations

    • Tenure: 0yrs
  • Laura Miller (54yo)

    Chief Investment Officer

    • Tenure: 1.7yrs
  • Nicolette Henfrey

    Executive VP

    • Tenure: 0.7yrs

Board Members

  • Dale Morrison (70yo)

    Senior Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: US$173.00k
  • Patrick Cescau (70yo)

    Non-Executive Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: US$442.00k
  • Ian Dyson (57yo)

    Independent Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: US$102.00k
  • Craig Hunt

    Vice-Chairman of Bass Hotels & Resorts Inc and Director of Bass Hotels & Resorts Inc

    • Tenure: 0yrs
  • Christopher Mayhew (66yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: US$76.00k
  • Elie Maalouf

    CEO of the Americas & Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$2.29m
  • Jill McDonald (53yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$91.00k
  • Keith Barr (48yo)

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: US$3.09m
  • Jo Harlow (57yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: US$101.00k
  • Paul Edgecliffe-Johnson

    CFO, Group Head of Strategy & Executive Director

    • Tenure: 5.8yrs
    • Compensation: US$2.39m

Company Information

InterContinental Hotels Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: InterContinental Hotels Group PLC
  • Ticker: IC1B
  • Exchange: DB
  • Founded: 1967
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: UK£8.167b
  • Listing Market Cap: UK£9.438b
  • Shares outstanding: 180.69m
  • Website: https://www.ihgplc.com

Number of Employees


Location

  • InterContinental Hotels Group PLC
  • Broadwater Park
  • Denham
  • Buckinghamshire
  • UB9 5HR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IHGNYSE (New York Stock Exchange)SPONSORED ADSUSUSDFeb 1990
IC1BDB (Deutsche Boerse AG)SPONSORED ADSDEEURFeb 1990
IHGLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2003
IC1HDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2003
ICHG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2003
IHGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2003
IC1HBST (Boerse-Stuttgart)YesOrdinary SharesDEEURMar 2003

Biography

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company operates hotels, resorts, and restauran ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:41
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.