InterContinental Hotels Group
Market Cap
UK£6.4b
Last Updated
2020/04/09 21:55 UTC
Data Sources
Company Financials +
Executive Summary
InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China.
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer with acceptable track record.
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
Stable Share Price: IHG's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
23.7%
IHG
16.1%
GB Hospitality
8.6%
GB Market
1 Year Return
-23.1%
IHG
-16.8%
GB Hospitality
-19.4%
GB Market
Return vs Industry: IHG underperformed the UK Hospitality industry which returned -20.1% over the past year.
Return vs Market: IHG underperformed the UK Market which returned -21.5% over the past year.
Shareholder returns
| IHG | Industry | Market | |
|---|---|---|---|
| 7 Day | 23.7% | 16.1% | 8.6% |
| 30 Day | -3.9% | -7.2% | -3.5% |
| 90 Day | -26.1% | -27.2% | -23.0% |
| 1 Year | -22.6%-23.1% | -14.6%-16.8% | -15.5%-19.4% |
| 3 Year | -0.8%-14.2% | -8.9%-18.0% | -8.8%-19.9% |
| 5 Year | 47.3%3.5% | 7.2%-9.4% | 4.2%-19.0% |
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
6 days ago | Simply Wall St
What Is InterContinental Hotels Group's (LON:IHG) P/E Ratio After Its Share Price Tanked?1 week ago | Simply Wall St
Analysts Just Slashed Their InterContinental Hotels Group PLC (LON:IHG) EPS NumbersValuation
Is InterContinental Hotels Group undervalued compared to its fair value and its price relative to the market?
37.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IHG (£37.1) is trading below our estimate of fair value (£59.11)
Significantly Below Fair Value: IHG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IHG is poor value based on its PE Ratio (21.9x) compared to the Hospitality industry average (18.6x).
PE vs Market: IHG is poor value based on its PE Ratio (21.9x) compared to the UK market (13.3x).
Price to Earnings Growth Ratio
PEG Ratio: IHG is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: IHG has negative assets, so we can't compare its PB Ratio to the GB 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 17 analysts?
13.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IHG's forecast earnings growth (13.4% per year) is above the savings rate (0.5%).
Earnings vs Market: IHG's earnings (13.4% per year) are forecast to grow slower than the UK market (15.4% per year).
High Growth Earnings: IHG's earnings are forecast to grow, but not significantly.
Revenue vs Market: IHG's revenue is expected to decline over the next 3 years (-11.6% per year).
High Growth Revenue: IHG's revenue is forecast to decline over the next 3 years (-11.6% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if IHG'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?
-14.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IHG has a large one-off loss of $177.0M impacting its December 31 2019 financial results.
Growing Profit Margin: IHG's current net profit margins (11.1%) are higher than last year (11%).
Past Earnings Growth Analysis
Earnings Trend: IHG's earnings have declined by -14.2% per year over the past 5 years.
Accelerating Growth: IHG's earnings growth over the past year (10.3%) exceeds its 5-year average (-14.2% per year).
Earnings vs Industry: IHG earnings growth over the past year (10.3%) exceeded the Hospitality industry -10.9%.
Return on Equity
High ROE: IHG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Next Steps
Financial Health
How is InterContinental Hotels Group's financial position?
Financial Position Analysis
Short Term Liabilities: IHG has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: IHG 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: IHG has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: IHG's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: IHG's debt is well covered by operating cash flow (29.9%).
Interest Coverage: IHG's interest payments on its debt are well covered by EBIT (7.8x coverage).
Balance Sheet
Next Steps
Dividend
What is InterContinental Hotels Group's current dividend yield, its reliability and sustainability?
2.73%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IHG's dividend (2.73%) is higher than the bottom 25% of dividend payers in the UK market (2.49%).
High Dividend: IHG's dividend (2.73%) is low compared to the top 25% of dividend payers in the UK market (6.84%).
Stability and Growth of Payments
Stable Dividend: IHG's dividend payments have been volatile in the past 10 years.
Growing Dividend: IHG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (59.8%), IHG's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IHG's dividends in 3 years are forecast to be well covered by earnings (40.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Keith Barr (48yo)
2.75s
Tenure
US$3,317,000
Compensation
Mr. Keith Barr serves as a Non-Executive Director of YUM! Brands, Inc. since January 24, 2020. Mr. Barr has been the Chief Executive Officer of Intercontinental Hotels Group plc since July 1, 2017. He serv ...
CEO Compensation Analysis
Compensation vs Market: Keith's total compensation ($USD4.12M) is about average for companies of similar size in the UK market ($USD3.36M).
Compensation vs Earnings: Keith's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.75yrs | US$3.32m | 0.020% $1.2m | |
| CFO, Group Head of Corporate Strategy & Executive Director | 6.25yrs | US$2.49m | 0.013% $834.6k | |
| Executive Director | 2.25yrs | US$2.48m | 0.010% $650.4k | |
| Chief Investment Officer | 2.17yrs | no data | no data | |
| Chief Technology Officer | 0.17yr | no data | no data | |
| VP & Head of Investor Relations | no data | no data | no data | |
| Executive VP | 1.17yrs | no data | no data | |
| Chief Communications Officer & VP of Corporate Communications - Americas Region | no data | no data | no data | |
| Global Chief Marketing Officer | 2.5yrs | no data | 0.00099% $62.9k | |
| Chief Operating Officer of South West Asia | no data | no data | no data |
2.5yrs
Average Tenure
53yo
Average Age
Experienced Management: IHG's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.75yrs | US$3.32m | 0.020% $1.2m | |
| CFO, Group Head of Corporate Strategy & Executive Director | 6.25yrs | US$2.49m | 0.013% $834.6k | |
| Executive Director | 2.25yrs | US$2.48m | 0.010% $650.4k | |
| Senior Independent Non-Executive Director | 5.92yrs | US$121.00k | 0.0017% $109.2k | |
| Non-Executive Chairman of the Board | 7.25yrs | US$449.00k | 0.0063% $398.2k | |
| Independent Non-Executive Director | 6.58yrs | US$104.00k | no data | |
| Vice-Chairman of Bass Hotels & Resorts Inc and Director of Bass Hotels & Resorts Inc | no data | no data | no data | |
| Independent Non-Executive Director | 8.75yrs | US$79.00k | 0.00076% $48.3k | |
| Independent Non-Executive Director | 6.83yrs | US$92.00k | no data | |
| Independent Non-Executive Director | 5.58yrs | US$104.00k | 0.00055% $34.9k |
6.3yrs
Average Tenure
57yo
Average Age
Experienced Board: IHG's board of directors are considered experienced (6.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: IHG insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
InterContinental Hotels Group PLC's company bio, employee growth, exchange listings and data sources
Key Information
- Name: InterContinental Hotels Group PLC
- Ticker: IHG
- Exchange: LSE
- Founded: 1777
- Industry: Hotels, Resorts and Cruise Lines
- Sector: Consumer Services
- Market Cap: UK£6.351b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IHG | NYSE (New York Stock Exchange) | SPON ADR EACH REPR 1 ORD(POST SPLIT) | US | USD | Feb 1990 | |
| IC1B | DB (Deutsche Boerse AG) | SPON ADR EACH REPR 1 ORD(POST SPLIT) | DE | EUR | Feb 1990 | |
| IHG | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Mar 2003 |
| IC1H | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Mar 2003 |
| ICHG.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Mar 2003 |
| IHGL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Mar 2003 |
| IC1H | BST (Boerse-Stuttgart) | Yes | Ordinary Shares | DE | EUR | Mar 2003 |
| IHG N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Mar 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, restaurants, and spas under the InterContinental Hotels & Resorts, Regent, Six Senses, Kimpton Hotels & Restaurants, Hotel Indigo, EVEN HOTELS, HUALUXE, Crowne Plaza, Voco, Holiday Inn, Holiday Inn Express, Holiday Inn Club Vacations, avid, Staybridge Suites, Atwell Suites, and Candlewood Suites brand names. It also provides IHG Rewards Club, a hotel loyalty program. As of February 28, 2020, the company had approximately 5,900 hotels and 884,000 rooms in approximately 100 countries. InterContinental Hotels Group PLC was founded in 1777 and is headquartered in Denham, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/09 21:55 |
| End of Day Share Price | 2020/04/09 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.