LSE:IAG

Stock Analysis Report

International Consolidated Airlines Group

Executive Summary

International Consolidated Airlines Group, S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, Ireland, the United States, and rest of the world.

Snowflake

Fundamentals

Undervalued with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has International Consolidated Airlines Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.5%

IAG

2.7%

GB Airlines

-0.2%

GB Market


1 Year Return

-31.2%

IAG

-25.2%

GB Airlines

-1.8%

GB Market

IAG underperformed the Airlines industry which returned -25.1% over the past year.

IAG underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.9% over the past year.


Share holder returns

IAGIndustryMarket
7 Day4.5%2.7%-0.2%
30 Day13.7%11.7%4.0%
90 Day3.7%6.9%0.5%
1 Year-23.2%-31.2%-19.3%-25.2%2.9%-1.8%
3 Year39.8%17.7%41.7%23.5%20.7%6.3%
5 Year57.9%28.9%37.7%13.1%33.2%5.1%

Price Volatility Vs. Market

How volatile is International Consolidated Airlines Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 week ago | Simply Wall St

Do Institutions Own International Consolidated Airlines Group, S.A. (LON:IAG) Shares?

Valuation

Is International Consolidated Airlines Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

International Consolidated Airlines Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

International Consolidated Airlines Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

International Consolidated Airlines Group is good value based on earnings compared to the GB Airlines industry average.

International Consolidated Airlines Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

International Consolidated Airlines Group is good value based on expected growth next year.


Price Based on Value of Assets

International Consolidated Airlines Group is overvalued based on assets compared to the GB Airlines industry average.


Next Steps

Future Growth

How is International Consolidated Airlines Group expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

International Consolidated Airlines Group's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

International Consolidated Airlines Group's earnings are expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).

International Consolidated Airlines Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

International Consolidated Airlines Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

International Consolidated Airlines Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

International Consolidated Airlines Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has International Consolidated Airlines Group performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

International Consolidated Airlines Group has delivered over 20% year on year earnings growth in the past 5 years.

International Consolidated Airlines Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

International Consolidated Airlines Group's 1-year earnings growth is negative, it can't be compared to the GB Airlines industry average.


Return on Equity

International Consolidated Airlines Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

International Consolidated Airlines Group used its assets more efficiently than the GB Airlines industry average last year based on Return on Assets.


Return on Capital Employed

International Consolidated Airlines Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is International Consolidated Airlines Group's financial position?


Financial Position Analysis

International Consolidated Airlines Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

International Consolidated Airlines Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

International Consolidated Airlines Group's level of debt (23.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (26.9% vs 23.8% today).

Debt is well covered by operating cash flow (243.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 8x debt.


Next Steps

Dividend

What is International Consolidated Airlines Group's current dividend yield, its reliability and sustainability?

6.03%

Expected Dividend Yield


Dividend Yield and Payments Analysis

International Consolidated Airlines Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).

International Consolidated Airlines Group's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.42%).

Whilst dividend payments have been stable, International Consolidated Airlines Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but International Consolidated Airlines Group only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).


Next Steps

Management

What is the CEO of International Consolidated Airlines Group's salary, the management and board of directors tenure and is there insider trading?

6.1yrs

Average management tenure


CEO

Willie Walsh (57yo)

8.7yrs

Tenure

€3,429,000

Compensation

Mr. William Matthew Walsh, also known as Willie, M.Sc. serves as the Chief Executive Officer of International Consolidated Airlines Group, S.A. since January 2011. Mr. Walsh served as Chief Executive Offic ...


CEO Compensation Analysis

Willie's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Willie's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.1yrs

Average Tenure

57yo

Average Age

The average tenure for the International Consolidated Airlines Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.4yrs

Average Tenure

60yo

Average Age

The tenure for the International Consolidated Airlines Group board of directors is about average.


Insider Trading

More shares have been bought than sold by International Consolidated Airlines Group individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

Buy€80007 Aug 19
Lucy Shaw
EntityIndividual
Shares168
Max Price€5.97
Buy€80306 Aug 19
Lucy Shaw
EntityIndividual
Shares168
Max Price€6.00
Sell€3,556,99617 May 19
William Walsh
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares700,000
Max Price€5.09
Sell€3,548,73115 May 19
William Walsh
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares700,000
Max Price€5.08
Buy€146,30317 Mar 19
Enrique de Lôme Chávarri
EntityIndividual
Shares26,418
Max Price€5.54
Buy€411,72817 Mar 19
William Walsh
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares74,346
Max Price€5.54

Ownership Breakdown


Management Team

  • Willie Walsh (57yo)

    CEO & Executive Director

    • Tenure: 8.7yrs
    • Compensation: €3.43m
  • Andrew Light

    Head of Investor Relations

    • Tenure: 0yrs
  • Julia Simpson (61yo)

    Chief of Staff

    • Tenure: 8.7yrs
  • Drew Crawley (52yo)

    Chief Executive Officer of Avios

    • Tenure: 2.4yrs
  • Chris Haynes

    General Counsel

    • Tenure: 8.7yrs
  • Steve Gunning

    CFO & Executive Director

    • Tenure: 0.3yrs
  • Álvaro López-Jorrín Hernández

    Secretary of the Board of Directors

    • Tenure: 5.7yrs
  • Luis Gallego Martín

    Chairman & CEO of Iberia

    • Tenure: 5.7yrs
    • Compensation: €541.00k
  • Alex Cruz de Llano

    Chairman & CEO of British Airways

    • Tenure: 3.4yrs
  • Glenn Morgan

    Head of Digital Business Transformation

    • Tenure: 0yrs

Board Members

  • Marc Bolland (60yo)

    Non Executive Director

    • Tenure: 3.3yrs
    • Compensation: €126.00k
  • Willie Walsh (57yo)

    CEO & Executive Director

    • Tenure: 8.7yrs
    • Compensation: €3.43m
  • Kieran Poynter (68yo)

    Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: €167.00k
  • Antonio Vázquez Romero (68yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: €649.00k
  • Sean Doyle (47yo)

    CEO & Executive Director of Aer Lingus

    • Tenure: 0.7yrs
  • Steve Gunning

    CFO & Executive Director

    • Tenure: 0.3yrs
  • Luis Gallego Martín

    Chairman & CEO of Iberia

    • Tenure: 5.7yrs
    • Compensation: €541.00k
  • Alberto Terol Esteban

    Senior Independent Director

    • Tenure: 0yrs
    • Compensation: €142.00k
  • Alex Cruz de Llano

    Chairman & CEO of British Airways

    • Tenure: 3.4yrs
  • Javier Sanchez-Prieto

    Vueling Chairman & CEO

    • Tenure: 3.4yrs

Company Information

International Consolidated Airlines Group, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: International Consolidated Airlines Group, S.A.
  • Ticker: IAG
  • Exchange: LSE
  • Founded: 2010
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: UK£9.481b
  • Shares outstanding: 1.98b
  • Website: https://www.iairgroup.com

Number of Employees


Location

  • International Consolidated Airlines Group, S.A.
  • El Caserío
  • Iberia Zona Industrial nº 2(La Muñoza)
  • Madrid
  • Madrid
  • 28042
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IAGBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJan 2011
IAGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 2011
ICAG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 2011
BABW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2011
INRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2011
IAGEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 2011
IAGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 2011
IAGWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 2011

Biography

International Consolidated Airlines Group, S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, Ireland, the United St ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 21:15
End of Day Share Price2019/09/20 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.