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IHG

InterContinental Hotels Group LSE:IHG Stock Report

Last Price

UK£42.75

Market Cap

UK£7.7b

7D

-8.5%

1Y

-10.7%

Updated

24 Sep, 2022

Data

Company Financials +
IHG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance2/6
Financial Health2/6
Dividends2/6

IHG Stock Overview

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

InterContinental Hotels Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for InterContinental Hotels Group
Historical stock prices
Current Share PriceUK£42.75
52 Week HighUK£53.86
52 Week LowUK£41.74
Beta0.99
1 Month Change-13.92%
3 Month Change-2.93%
1 Year Change-10.73%
3 Year Change-15.40%
5 Year Change2.87%
Change since IPO203.82%

Recent News & Updates

Aug 25
Is Now An Opportune Moment To Examine InterContinental Hotels Group PLC (LON:IHG)?

Is Now An Opportune Moment To Examine InterContinental Hotels Group PLC (LON:IHG)?

Let's talk about the popular InterContinental Hotels Group PLC ( LON:IHG ). The company's shares saw a decent share...

Shareholder Returns

IHGGB HospitalityGB Market
7D-8.5%-5.4%-3.1%
1Y-10.7%-22.4%-13.8%

Return vs Industry: IHG exceeded the UK Hospitality industry which returned -22.4% over the past year.

Return vs Market: IHG exceeded the UK Market which returned -13.8% over the past year.

Price Volatility

Is IHG's price volatile compared to industry and market?
IHG volatility
IHG Average Weekly Movement3.8%
Hospitality Industry Average Movement5.4%
Market Average Movement5.2%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: IHG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IHG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
177711,161Keith Barrhttps://www.ihgplc.com

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 under the Six Senses, Regent, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, Hotel Indigo, EVEN Hotels, HUALUXE, Holiday Inn, Holiday Inn Express, Holiday Inn Club Vacations, avid, Staybridge Suites, Atwell Suites, Candlewood Suites, voco, and Crowne Plaza. It also provides IHG Rewards loyalty program.

InterContinental Hotels Group Fundamentals Summary

How do InterContinental Hotels Group's earnings and revenue compare to its market cap?
IHG fundamental statistics
Market CapUK£7.69b
Earnings (TTM)UK£396.98m
Revenue (TTM)UK£2.53b

19.4x

P/E Ratio

3.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IHG income statement (TTM)
RevenueUS$2.77b
Cost of RevenueUS$1.54b
Gross ProfitUS$1.23b
Other ExpensesUS$798.00m
EarningsUS$434.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.41
Gross Margin44.49%
Net Profit Margin15.67%
Debt/Equity Ratio-225.6%

How did IHG perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

55%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is IHG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IHG?

Other financial metrics that can be useful for relative valuation.

IHG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.6x
Enterprise Value/EBITDA13.3x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does IHG's PE Ratio compare to its peers?

IHG PE Ratio vs Peers
The above table shows the PE ratio for IHG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average51.5x
WTB Whitbread
117x37.7%UK£5.0b
ENT Entain
29.9x53.0%UK£6.4b
CPG Compass Group
43.3x17.6%UK£31.8b
GRG Greggs
15.7x7.4%UK£1.9b
IHG InterContinental Hotels Group
19.4x14.7%UK£7.7b

Price-To-Earnings vs Peers: IHG is good value based on its Price-To-Earnings Ratio (19.4x) compared to the peer average (51.5x).


Price to Earnings Ratio vs Industry

How does IHG's PE Ratio compare vs other companies in the GB Hospitality Industry?

Price-To-Earnings vs Industry: IHG is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the UK Hospitality industry average (10.1x)


Price to Earnings Ratio vs Fair Ratio

What is IHG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IHG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.4x
Fair PE Ratio34.1x

Price-To-Earnings vs Fair Ratio: IHG is good value based on its Price-To-Earnings Ratio (19.4x) compared to the estimated Fair Price-To-Earnings Ratio (34.1x).


Share Price vs Fair Value

What is the Fair Price of IHG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IHG (£42.75) is trading below our estimate of fair value (£72.23)

Significantly Below Fair Value: IHG is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is InterContinental Hotels Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


14.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IHG's forecast earnings growth (14.7% per year) is above the savings rate (0.9%).

Earnings vs Market: IHG's earnings (14.7% per year) are forecast to grow faster than the UK market (8.8% per year).

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

Revenue vs Market: IHG's revenue (5.7% per year) is forecast to grow faster than the UK market (4.6% per year).

High Growth Revenue: IHG's revenue (5.7% 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


Discover growth companies

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-28.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IHG has high quality earnings.

Growing Profit Margin: IHG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: IHG's earnings have declined by 28.8% per year over the past 5 years.

Accelerating Growth: IHG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: IHG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (34.8%).


Return on Equity

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


Discover strong past performing companies

Financial Health

How is InterContinental Hotels Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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 (24.1%).

Interest Coverage: IHG's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.77%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IHG's dividend (1.77%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.05%).

High Dividend: IHG's dividend (1.77%) is low compared to the top 25% of dividend payers in the UK market (5.77%).


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 fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54.9%), IHG's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (26.1%), IHG's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Keith Barr (51 yo)

5.17yrs

Tenure

US$4,300,493

Compensation

Mr. Keith Barr serves as an Independent 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,...


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD4.30M) is about average for companies of similar size in the UK market ($USD3.37M).

Compensation vs Earnings: Keith's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: IHG's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: IHG's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 64.09% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.71%
BlackRock, Inc.
17,479,940$747.3m-9.26%0.02%
6.85%
FMR LLC
12,341,828$527.6m9.12%0.06%
6.28%
Fiera Capital Corporation
11,301,284$483.1m-0.56%0.76%
4.99%
Fundsmith, LLP
8,989,647$384.3m0%1.46%
4.94%
RBC Global Asset Management Inc.
8,893,472$380.2m2.5%0.32%
4.14%
The Vanguard Group, Inc.
7,456,791$318.8m2.24%0.01%
3.11%
Boron Investments B.V.
5,600,000$239.4m0%no data
2.77%
Capital Research and Management Company
4,986,949$213.2m88.48%0.02%
2.49%
Norges Bank Investment Management
4,478,223$191.4m5.72%0.03%
1.98%
BLS Capital
3,559,477$152.2m-31.57%3.97%
1.85%
Legal & General Investment Management Limited
3,339,180$142.7m0.21%0.05%
1.68%
State Street Global Advisors, Inc.
3,026,070$129.4m7.22%0.01%
1.53%
UBS Asset Management
2,747,253$117.4m1.62%0.03%
1.35%
Pictet Asset Management Limited
2,427,095$103.8m-3.87%0.1%
1.23%
J.P. Morgan Asset Management, Inc.
2,210,889$94.5m23.67%0.02%
1.2%
Caisse des dépôts et consignations, Asset Management Arm
2,156,595$92.2m0.02%1.28%
1%
Troy Asset Management Limited
1,793,177$76.7m1.69%0.96%
0.97%
HSBC Global Asset Management (UK) Limited
1,744,204$74.6m7.96%0.07%
0.96%
Societe Generale Group, Banking Investments
1,726,346$73.8m473.42%0.77%
0.96%
Barclays Bank PLC, Securities Investments
1,720,910$73.6m199.3%0.25%
0.92%
Brewin Dolphin Limited
1,654,794$70.7m-2.8%0.74%
0.83%
Schroder Investment Management Limited
1,496,283$64.0m84.92%0.06%
0.82%
Eurizon Capital SGR S.p.A.
1,478,768$63.2m38.53%0.3%
0.79%
Eaton Vance Management
1,422,694$60.8m-0.51%0.03%
0.76%
Fidelity International Ltd
1,376,357$58.8m-6.46%0.03%

Company Information

InterContinental Hotels Group PLC's 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
  • Implied Market Cap: UK£7.692b
  • Shares outstanding: 179.94m
  • 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)SPON ADS EACH REPR 1 ORD SHSUSUSDFeb 1990
IC1BDB (Deutsche Boerse AG)SPON ADS EACH REPR 1 ORD SHSDEEURFeb 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
IHG NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMar 2003
I1HG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 6 REPR 1 ADRBRBRLSep 2022

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.