LSE:IHG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Reasonable growth potential and 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

Stable Share Price: IHG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

IHG

-0.02%

GB Hospitality

0.07%

GB Market


1 Year Return

-9.3%

IHG

-34.8%

GB Hospitality

-15.4%

GB Market

Return vs Industry: IHG exceeded the UK Hospitality industry which returned -34.8% over the past year.

Return vs Market: IHG exceeded the UK Market which returned -15.4% over the past year.


Shareholder returns

IHGIndustryMarket
7 Day0.6%-0.02%0.07%
30 Day6.8%1.3%1.7%
90 Day16.1%13.6%-1.8%
1 Year-9.3%-9.3%-33.0%-34.8%-12.1%-15.4%
3 Year4.2%-4.6%-22.5%-29.5%-8.4%-19.7%
5 Year72.9%22.4%-2.4%-19.5%16.4%-9.7%

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

Valuation

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

12.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IHG (£42.01) is trading below our estimate of fair value (£48.14)

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 unprofitable, so we can't compare its PE Ratio to the GB Hospitality industry average.

PE vs Market: IHG is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IHG's PEG Ratio to determine if it is good value.


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?

62.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IHG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: IHG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IHG's is expected to become profitable in the next 3 years.

Revenue vs Market: IHG's revenue (15.7% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: IHG's revenue (15.7% 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


Next Steps

Past Performance

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

-28.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IHG is currently unprofitable.

Growing Profit Margin: IHG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IHG is unprofitable, and losses have increased over the past 5 years at a rate of 28.9% per year.

Accelerating Growth: Unable to compare IHG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IHG is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-12.3%).


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 not well covered by operating cash flow (16.7%).

Interest Coverage: IHG is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

1.13%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IHG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate IHG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IHG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IHG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: IHG is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IHG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Keith Barr (49 yo)

3.25yrs

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 ($USD5.73M) is about average for companies of similar size in the UK market ($USD4.90M).

Compensation vs Earnings: Keith's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Keith Barr
CEO & Director3.25yrsUS$3.32m0.039%
$ 3.0m
Paul Edgecliffe-Johnson
CFO, Group Head of Corporate Strategy & Executive Director6.75yrsUS$2.49m0.029%
$ 2.2m
Elie Maalouf
CEO of the Americas & Executive Director2.75yrsUS$2.48m0.034%
$ 2.6m
Laura Miller
Chief Investment Officer2.67yrsno datano data
Daniel Blanchard
Chief Technology Officer0.67yrno datano data
Stuart Ford
VP & Head of Investor Relationsno datano datano data
Nicolette Henfrey
Executive VP1.67yrsno datano data
Michael Torres
Chief Communications Officer & VP of Corporate Communications - Americas Regionno datano datano data
Claire Bennett
Global Chief Marketing Officer3yrsno data0.0091%
$ 693.8k
Wayne Hoare
Chief Human Resources Officer0.083yrno datano data
Chris Moloney
Chief Operating Officer of South West Asiano datano datano data
Hung Chua Tan
Chief Operating Officer of South East Asia & Korea3.83yrsno datano data

3.0yrs

Average Tenure

54yo

Average Age

Experienced Management: IHG's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Keith Barr
CEO & Director3.25yrsUS$3.32m0.039%
$ 3.0m
Paul Edgecliffe-Johnson
CFO, Group Head of Corporate Strategy & Executive Director6.75yrsUS$2.49m0.029%
$ 2.2m
Elie Maalouf
CEO of the Americas & Executive Director2.75yrsUS$2.48m0.034%
$ 2.6m
Dale Morrison
Senior Independent Non-Executive Director6.42yrsUS$121.00k0.0016%
$ 124.5k
Anne Busquet
Independent Non-Executive Director5.58yrsUS$82.00kno data
Patrick Cescau
Non-Executive Chairman of the Board7.75yrsUS$449.00k0.0040%
$ 308.7k
Ian Dyson
Independent Non-Executive Director7.08yrsUS$104.00k0.00082%
$ 62.7k
Craig Hunt
Vice-Chairman of Bass Hotels & Resorts Inc and Director of Bass Hotels & Resorts Incno datano datano data
Christopher Mayhew
Independent Non-Executive Director9.25yrsUS$79.00k0.00072%
$ 55.0k
Graham Allan
Independent Non-Executive Director0.083yrno datano data
Jill McDonald
Independent Non-Executive Director7.33yrsUS$92.00kno data
Jo Harlow
Independent Non-Executive Director6.08yrsUS$104.00k0.00052%
$ 39.7k

6.4yrs

Average Tenure

58yo

Average Age

Experienced Board: IHG's board of directors are considered experienced (6.4 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.


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£7.640b
  • Shares outstanding: 181.87m
  • 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
IC1ADB (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

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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 20:49
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.