InterContinental Hotels Group
Market Cap
UK£8.8b
Last Updated
2019/12/15 21:08 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
Second-rate dividend payer with imperfect balance sheet.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.1%
IHG
1.3%
GB Hospitality
2.3%
GB Market
1 Year Return
10.6%
IHG
17.9%
GB Hospitality
10.7%
GB Market
Return vs Industry: IHG underperformed the UK Hospitality industry which returned 17.9% over the past year.
Return vs Market: IHG matched the UK Market which returned 10.7% over the past year.
Shareholder returns
| IHG | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | 1.3% | 2.3% |
| 30 Day | 2.7% | -1.5% | 2.5% |
| 90 Day | -2.5% | 2.2% | 3.0% |
| 1 Year | 18.7%10.6% | 21.3%17.9% | 16.4%10.7% |
| 3 Year | 46.8%27.0% | 35.3%21.3% | 21.3%5.8% |
| 5 Year | 107.1%43.7% | 57.8%32.9% | 41.0%8.7% |
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
7 hours ago | Simply Wall St
A Look At The Intrinsic Value Of InterContinental Hotels Group PLC (LON:IHG)1 week ago | Simply Wall St
Who Has Been Selling InterContinental Hotels Group PLC (LON:IHG) Shares?4 weeks ago | Simply Wall St
Did InterContinental Hotels Group's (LON:IHG) Share Price Deserve to Gain 38%?Valuation
Is InterContinental Hotels Group undervalued compared to its fair value and its price relative to the market?
16.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IHG (£48.9) is trading below our estimate of fair value (£58.57)
Significantly Below Fair Value: IHG is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: IHG is poor value based on its PE Ratio (28x) compared to the Hospitality industry average (27.3x).
PE vs Market: IHG is poor value based on its PE Ratio (28x) compared to the UK market (17.6x).
Price to Earnings Growth Ratio
PEG Ratio: IHG is poor value based on its PEG Ratio (2.5x)
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 19 analysts?
11.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IHG's forecast earnings growth (11% per year) is above the savings rate (0.5%).
Earnings vs Market: IHG's earnings (11% per year) are forecast to grow slower than the UK market (12.3% per year).
High Growth Earnings: IHG's earnings are forecast to grow, but not significantly.
Revenue vs Market: IHG's revenue (2.4% per year) is forecast to grow slower than the UK market (3.5% per year).
High Growth Revenue: IHG's revenue (2.4% per year) is forecast to grow slower than 20% 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?
-5.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IHG has high quality earnings.
Growing Profit Margin: IHG's current net profit margins (12.7%) are lower than last year (17.2%).
Past Earnings Growth Analysis
Earnings Trend: IHG's earnings have declined by -5.5% per year over the past 5 years.
Accelerating Growth: IHG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: IHG had negative earnings growth (-19.2%) over the past year, making it difficult to compare to the Hospitality industry average (4.9%).
Return on Equity
High ROE: IHG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
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 (23.5%).
Interest Coverage: IHG's interest payments on its debt are well covered by EBIT (8.6x coverage).
Balance Sheet
Inventory Level: IHG has a high level of physical assets or inventory.
Debt Coverage by Assets: IHG 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?
1.85%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: IHG's dividend (1.85%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.9%).
High Dividend: IHG's dividend (1.85%) is low compared to the top 25% of dividend payers in the UK market (5.06%).
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 (52.3%), 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 (41.8% 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?
2.3yrs
Average management tenure
CEO
Keith Barr (48yo)
2.4yrs
Tenure
US$3,093,000
Compensation
Mr. Keith Barr has been the Chief Executive Officer of Intercontinental Hotels Group plc since July 1, 2017. Mr. Barr served as the Chief Commercial Officer of Intercontinental Hotels Group plc since May 2 ...
CEO Compensation Analysis
Compensation vs Market: Keith's total compensation ($USD4.12M) is about average for companies of similar size in the UK market ($USD4.88M).
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
2.3yrs
Average Tenure
50.5yo
Average Age
Experienced Management: IHG's management team is considered experienced (2.3 years average tenure).
Board Age and Tenure
5.9yrs
Average Tenure
57yo
Average Age
Experienced Board: IHG's board of directors are considered experienced (5.9 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.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 800 |
| Max Price | UK£50.23 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 800 |
| Max Price | UK£50.23 |
| Entity | Individual |
| Shares | 2,200 |
| Max Price | UK£45.21 |
| Entity | Individual |
| Shares | 3,412 |
| Max Price | UK£45.21 |
| Entity | Individual |
| Shares | 5,183 |
| Max Price | UK£45.21 |
| Entity | Individual |
| Role | Chief Technology Officer Chief Commercial & Technology Officer |
| Shares | 10,000 |
| Max Price | UK£46.13 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Elie Maalouf (55yo)
CEO of the Americas & Executive Director
- Tenure: 1.9yrs
- Compensation: US$2.29m
Keith Barr (48yo)
CEO & Director
- Tenure: 2.4yrs
- Compensation: US$3.09m
George Turner (48yo)
Chief Commercial & Technology Officer
- Tenure: 0.8yrs
Paul Edgecliffe-Johnson (47yo)
CFO, Group Head of Strategy & Executive Director
- Tenure: 5.9yrs
- Compensation: US$2.39m
Claire Bennett (53yo)
Chief Marketing Officer
- Tenure: 2.2yrs
Michael Torres
Chief Communications Officer & VP of Corporate Communications - Americas Region
- Tenure: 0yrs
Ranjay Radhakrishnan
Chief Human Resources Officer
- Tenure: 3yrs
Heather Wood
VP & Head of Investor Relations
- Tenure: 0yrs
Laura Miller (54yo)
Chief Investment Officer
- Tenure: 1.8yrs
Nicolette Henfrey
Executive VP
- Tenure: 0.8yrs
Board Members
Dale Morrison (70yo)
Senior Independent Non-Executive Director
- Tenure: 5.6yrs
- Compensation: US$173.00k
Patrick Cescau (70yo)
Non-Executive Chairman of the Board
- Tenure: 6.9yrs
- Compensation: US$442.00k
Ian Dyson (57yo)
Independent Non-Executive Director
- Tenure: 6.3yrs
- 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: 8.4yrs
- Compensation: US$76.00k
Elie Maalouf (55yo)
CEO of the Americas & Executive Director
- Tenure: 1.9yrs
- Compensation: US$2.29m
Jill McDonald (53yo)
Independent Non-Executive Director
- Tenure: 6.5yrs
- Compensation: US$91.00k
Keith Barr (48yo)
CEO & Director
- Tenure: 2.4yrs
- Compensation: US$3.09m
Jo Harlow (57yo)
Independent Non-Executive Director
- Tenure: 5.3yrs
- Compensation: US$101.00k
Paul Edgecliffe-Johnson (47yo)
CFO, Group Head of Strategy & Executive Director
- Tenure: 5.9yrs
- 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: IHG
- Exchange: LSE
- Founded: 1967
- Industry: Hotels, Resorts and Cruise Lines
- Sector: Consumer Services
- Market Cap: UK£8.836b
- 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 | US | USD | Feb 1990 | |
| IC1B | DB (Deutsche Boerse AG) | SPON ADR EACH REPR 1 ORD | 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 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/15 21:08 |
| End of Day Share Price | 2019/12/13 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.