International Consolidated Airlines Group
Market Cap
UK£11.0b
Last Updated
2020/02/25 21:52 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with adequate balance sheet.
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
Stable Share Price: IAG has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-12.5%
IAG
-1.8%
GB Airlines
-0.5%
GB Market
1 Year Return
-10.4%
IAG
11.5%
GB Airlines
6.0%
GB Market
Return vs Industry: IAG underperformed the UK Airlines industry which returned 11.5% over the past year.
Return vs Market: IAG underperformed the UK Market which returned 6% over the past year.
Shareholder returns
| IAG | Industry | Market | |
|---|---|---|---|
| 7 Day | -12.5% | -1.8% | -0.5% |
| 30 Day | -11.0% | 1.5% | -1.8% |
| 90 Day | -3.4% | 12.1% | 2.4% |
| 1 Year | 0.1%-10.4% | 20.2%11.5% | 11.5%6.0% |
| 3 Year | 22.3%2.9% | 65.8%45.9% | 18.2%3.5% |
| 5 Year | 24.0%-0.6% | 47.6%22.6% | 34.3%3.5% |
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
Valuation
Is International Consolidated Airlines Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IAG (£6.23) is trading below our estimate of fair value (£15.74)
Significantly Below Fair Value: IAG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IAG is good value based on its PE Ratio (6.6x) compared to the Airlines industry average (10x).
PE vs Market: IAG is good value based on its PE Ratio (6.6x) compared to the UK market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: IAG is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: IAG is overvalued based on its PB Ratio (2.3x) compared to the GB Airlines industry average (2.2x).
Next Steps
Future Growth
How is International Consolidated Airlines Group forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
7.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IAG's forecast earnings growth (7.1% per year) is above the savings rate (0.5%).
Earnings vs Market: IAG's earnings (7.1% per year) are forecast to grow slower than the UK market (13.1% per year).
High Growth Earnings: IAG's earnings are forecast to grow, but not significantly.
Revenue vs Market: IAG's revenue (3.3% per year) is forecast to grow slower than the UK market (3.8% per year).
High Growth Revenue: IAG's revenue (3.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IAG's Return on Equity is forecast to be high in 3 years time (22.5%)
Next Steps
Past Performance
How has International Consolidated Airlines Group performed over the past 5 years?
18.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IAG has a high level of non-cash earnings.
Growing Profit Margin: IAG's current net profit margins (8.7%) are lower than last year (12.1%).
Past Earnings Growth Analysis
Earnings Trend: IAG's earnings have grown by 18.3% per year over the past 5 years.
Accelerating Growth: IAG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: IAG had negative earnings growth (-22.4%) over the past year, making it difficult to compare to the Airlines industry average (-9.8%).
Return on Equity
High ROE: IAG's Return on Equity (34%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is International Consolidated Airlines Group's financial position?
Financial Position Analysis
Short Term Liabilities: IAG's short term assets (€12.5B) do not cover its short term liabilities (€14.8B).
Long Term Liabilities: IAG's short term assets (€12.5B) do not cover its long term liabilities (€14.7B).
Debt to Equity History and Analysis
Debt Level: IAG's debt to equity ratio (23.8%) is considered satisfactory.
Reducing Debt: IAG's debt to equity ratio has reduced from 40.7% to 23.8% over the past 5 years.
Debt Coverage: IAG's debt is well covered by operating cash flow (243.1%).
Interest Coverage: IAG's interest payments on its debt are well covered by EBIT (13.4x coverage).
Balance Sheet
Inventory Level: IAG has a high level of physical assets or inventory.
Debt Coverage by Assets: IAG's 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?
4.69%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: IAG's dividend (4.18%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).
High Dividend: IAG's dividend (4.18%) is low compared to the top 25% of dividend payers in the UK market (5.03%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, IAG has been paying a dividend for less than 10 years.
Growing Dividend: IAG's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27.7%), IAG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IAG's dividends in 3 years are forecast to be well covered by earnings (23.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.5yrs
Average management tenure
CEO
Willie Walsh (57yo)
9.1yrs
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
Compensation vs Market: Willie's total compensation ($USD3.72M) is about average for companies of similar size in the UK market ($USD4.67M).
Compensation vs Earnings: Willie's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 9.1yrs | €3.43m | 0.066% €7.2m | |
| CFO & Executive Director | 0.7yrs | no data | 0.0088% €970.1k | |
| Chief Information Officer | 0.4yrs | no data | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| General Counsel | 9.1yrs | no data | 0.0072% €793.4k | |
| Chief of Staff | 9.1yrs | no data | no data | |
| Head of Digital Business Transformation | 0yrs | no data | no data | |
| Secretary of the Board of Directors | 6.1yrs | no data | no data | |
| Chairman & CEO of Iberia | 6.1yrs | €541.00k | 0.017% €1.8m | |
| Chairman & CEO of British Airways | 3.8yrs | no data | no data |
6.5yrs
Average Tenure
Experienced Management: IAG's management team is seasoned and experienced (6.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 9.1yrs | €3.43m | 0.066% €7.2m | |
| CFO & Executive Director | 0.7yrs | no data | 0.0088% €970.1k | |
| Chairman & CEO of Iberia | 6.1yrs | €541.00k | 0.017% €1.8m | |
| Chairman & CEO of British Airways | 3.8yrs | no data | no data | |
| Vueling Chairman & CEO | 3.8yrs | no data | no data | |
| CEO & Executive Director of Aer Lingus | 1.1yrs | no data | no data | |
| Non Executive Director | 3.7yrs | €126.00k | no data | |
| Non-Executive Director | 9.1yrs | €167.00k | 0.00076% €83.4k | |
| Independent Chairman | 0yrs | €649.00k | 0.026% €2.8m | |
| Senior Independent Director | 0yrs | €142.00k | 0.0013% €147.1k |
3.8yrs
Average Tenure
60yo
Average Age
Experienced Board: IAG's board of directors are considered experienced (3.8 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
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£10.974b
- Shares outstanding: 1.99b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IAG | BME (Bolsas y Mercados Espanoles) | Yes | Ordinary Shares | ES | EUR | Jan 2011 |
| IAG | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 2011 |
| ICAG.Y | OTCPK (Pink Sheets LLC) | SPON ADR EACH REPR 2 ORD SHS | US | USD | Jan 2011 | |
| BABW.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 2011 |
| INR | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 2011 |
| IAGE | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Jan 2011 |
| IAGL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 2011 |
| IAG | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Jan 2011 |
| INR | ETLX (Eurotlx) | Yes | Ordinary Shares | IT | EUR | Jan 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 States, and rest of the world. The company operates under the British Airways, Iberia, Vueling, LEVEL, and Aer Lingus brands. It operates a fleet of 573 aircraft flying to 268 destinations. The company was incorporated in 2010 and is based in Madrid, Spain.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/25 21:52 |
| End of Day Share Price | 2020/02/25 00:00 |
| Earnings | 2019/09/30 |
| 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.