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International Consolidated Airlines Group

LSE:IAG
Snowflake Description

Solid track record, good value and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IAG
LSE
£10B
Market Cap
  1. Home
  2. GB
  3. Transportation
Company description

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 last earnings update was 19 days ago. More info.


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  • International Consolidated Airlines Group has significant price volatility in the past 3 months.
IAG Share Price and Events
7 Day Returns
-5%
LSE:IAG
-5.8%
GB Airlines
-0.6%
GB Market
1 Year Returns
-13%
LSE:IAG
-17%
GB Airlines
1.4%
GB Market
IAG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
International Consolidated Airlines Group (IAG) -5% -19.2% -12.8% -13% -3.8% 24.8%
GB Airlines -5.8% -13.9% -6.4% -17% -2.7% 4.6%
GB Market -0.6% 0.4% 7.5% 1.4% 14.8% 2%
1 Year Return vs Industry and Market
  • IAG outperformed the Airlines industry which returned -17% over the past year.
  • IAG underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.4% over the past year.
Price Volatility
IAG
Industry
5yr Volatility vs Market

IAG Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of International Consolidated Airlines Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for International Consolidated Airlines Group.

LSE:IAG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 24 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:IAG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 8.2%
Airlines Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.885 (1 + (1- 25%) (62.11%))
1.199
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.199 * 8.18%)
11.04%

Discounted Cash Flow Calculation for LSE:IAG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for International Consolidated Airlines Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:IAG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 11.04%)
2019 1,253.67 Analyst x9 1,129.07
2020 1,535.12 Analyst x10 1,245.14
2021 1,730.00 Analyst x6 1,263.75
2022 3,550.00 Analyst x1 2,335.51
2023 3,896.00 Analyst x1 2,308.40
2024 4,163.96 Est @ 6.88% 2,221.96
2025 4,379.77 Est @ 5.18% 2,104.84
2026 4,554.78 Est @ 4% 1,971.39
2027 4,698.95 Est @ 3.17% 1,831.66
2028 4,820.36 Est @ 2.58% 1,692.24
Present value of next 10 years cash flows €18,103.96
LSE:IAG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €4,820.36 × (1 + 1.23%) ÷ (11.04% – 1.23%)
€49,747.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €49,747.89 ÷ (1 + 11.04%)10
€17,464.54
LSE:IAG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €18,103.96 + €17,464.54
€35,568.50
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €35,568.50 / 1,983.31
€17.93
LSE:IAG Discount to Share Price
Calculation Result
Exchange Rate EUR/GBP
(Reporting currency to currency of LSE:IAG)
0.855
Value per Share
(GBP)
= Value per Share in EUR x Exchange Rate (EUR/GBP)
= €17.93 x 0.855
£15.34
Value per share (GBP) From above. £15.34
Current discount Discount to share price of £5.21
= -1 x (£5.21 - £15.34) / £15.34
66%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price International Consolidated Airlines Group is available for.
Intrinsic value
>50%
Share price is £5.21 vs Future cash flow value of £15.34
Current Discount Checks
For International Consolidated Airlines Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for International Consolidated Airlines Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are International Consolidated Airlines Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:IAG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €1.43
LSE:IAG Share Price ** LSE (2019-03-22) in GBP £5.21
LSE:IAG Share Price converted to EUR reporting currency Exchange rate (GBP/ EUR) 1.169 €6.1
United Kingdom of Great Britain and Northern Ireland Airlines Industry PE Ratio Median Figure of 6 Publicly-Listed Airlines Companies 7.82x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 805 Publicly-Listed Companies 15.82x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of International Consolidated Airlines Group.

LSE:IAG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:IAG Share Price ÷ EPS (both in EUR)

= 6.1 ÷ 1.43

4.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does International Consolidated Airlines Group's expected growth come at a high price?
Raw Data
LSE:IAG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
0.9%per year
United Kingdom of Great Britain and Northern Ireland Airlines Industry PEG Ratio Median Figure of 5 Publicly-Listed Airlines Companies 0.56x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.34x

*Line of best fit is calculated by linear regression .

LSE:IAG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 4.27x ÷ 0.9%

4.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • International Consolidated Airlines Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on International Consolidated Airlines Group's assets?
Raw Data
LSE:IAG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €3.39
LSE:IAG Share Price * LSE (2019-03-22) in GBP £5.21
LSE:IAG Share Price converted to EUR reporting currency Exchange rate (GBP/ EUR) 1.169 €6.1
United Kingdom of Great Britain and Northern Ireland Airlines Industry PB Ratio Median Figure of 8 Publicly-Listed Airlines Companies 1.5x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,360 Publicly-Listed Companies 1.48x
LSE:IAG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:IAG Share Price ÷ Book Value per Share (both in EUR)

= 6.1 ÷ 3.39

1.8x

* Primary Listing of International Consolidated Airlines Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • International Consolidated Airlines Group is overvalued based on assets compared to the GB Airlines industry average.
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Value checks
We assess International Consolidated Airlines Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Airlines industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Airlines industry average (and greater than 0)? (1 check)
  5. International Consolidated Airlines Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

IAG Future Performance

 How is International Consolidated Airlines Group expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is International Consolidated Airlines Group expected to grow at an attractive rate?
  • International Consolidated Airlines Group's earnings growth is positive but not above the low risk savings rate of 1.2%.
Growth vs Market Checks
  • 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 revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:IAG Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:IAG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts 0.9%
LSE:IAG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 5.1%
United Kingdom of Great Britain and Northern Ireland Airlines Industry Earnings Growth Rate Market Cap Weighted Average 10.1%
United Kingdom of Great Britain and Northern Ireland Airlines Industry Revenue Growth Rate Market Cap Weighted Average 7.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:IAG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:IAG Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 30,519 4,842 3,458 1
2022-12-31 29,732 4,477 3,071 2
2021-12-31 29,062 4,625 2,838 12
2020-12-31 27,156 4,032 2,508 24
2019-12-31 25,818 3,820 2,325 24
LSE:IAG Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 24,406 3,236 2,885
2018-09-30 23,868 2,918
2018-06-30 23,311 3,539 2,802
2018-03-31 23,074 2,738
2017-12-31 22,880 3,513 1,989
2017-09-30 22,745 2,044
2017-06-30 22,648 3,060 1,984
2017-03-31 22,423 1,854
2016-12-31 22,567 2,645 1,931
2016-09-30 23,011 1,799
2016-06-30 23,281 2,705 1,717
2016-03-31 23,229 1,615

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • International Consolidated Airlines Group's earnings are expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).
  • International Consolidated Airlines Group's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:IAG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below

All data from International Consolidated Airlines Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:IAG Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.95 1.95 1.95 1.00
2022-12-31 1.58 1.74 1.42 2.00
2021-12-31 1.39 1.57 1.20 6.00
2020-12-31 1.22 1.45 0.94 9.00
2019-12-31 1.10 1.20 0.87 7.00
LSE:IAG Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 1.43
2018-09-30 1.43
2018-06-30 1.36
2018-03-31 1.35
2017-12-31 0.95
2017-09-30 0.97
2017-06-30 0.94
2017-03-31 0.88
2016-12-31 0.93
2016-09-30 0.88
2016-06-30 0.84
2016-03-31 0.77

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • International Consolidated Airlines Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess International Consolidated Airlines Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
International Consolidated Airlines Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

IAG Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare International Consolidated Airlines Group's growth in the last year to its industry (Airlines).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 exceeds its 5-year average (45% vs 29.9%)
  • International Consolidated Airlines Group's earnings growth has exceeded the GB Airlines industry average in the past year (45% vs 9.4%).
Earnings and Revenue History
International Consolidated Airlines Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from International Consolidated Airlines Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:IAG Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 24,406.00 2,885.00 1,964.00
2018-09-30 23,868.00 2,918.00 1,985.00
2018-06-30 23,311.00 2,802.00 1,945.00
2018-03-31 23,074.00 2,738.00 1,908.00
2017-12-31 22,880.00 1,989.00 1,897.00
2017-09-30 22,745.00 2,044.00 1,779.00
2017-06-30 22,648.00 1,984.00 1,767.00
2017-03-31 22,423.00 1,854.00 1,757.00
2016-12-31 22,567.00 1,931.00 1,766.00
2016-09-30 23,011.00 1,799.00 1,843.00
2016-06-30 23,281.00 1,717.00 1,818.00
2016-03-31 23,229.00 1,615.00 1,762.00
2015-12-31 22,858.00 1,495.00 1,712.00
2015-09-30 22,134.00 1,468.00 1,670.00
2015-06-30 21,244.00 1,218.00 1,688.00
2015-03-31 20,674.00 1,140.00 1,768.00
2014-12-31 20,170.00 982.00 1,786.00
2014-09-30 19,678.00 743.00 1,782.00
2014-06-30 19,218.00 725.00 1,775.00
2014-03-31 18,900.00 572.00 1,747.00
2013-12-31 18,636.00 126.00 1,707.00
2013-09-30 18,642.00 -658.00 1,742.00
2013-06-30 18,292.00 -984.00 1,789.00
2013-03-31 18,137.00 -1,179.00 1,793.00
2012-12-31 18,117.00 -678.00 1,827.00
2012-09-30 17,664.00 254.00 1,808.00
2012-06-30 17,098.00 267.00 1,763.00
2012-03-31 16,622.00 383.00 1,718.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst International Consolidated Airlines Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • International Consolidated Airlines Group used its assets more efficiently than the GB Airlines industry average last year based on Return on Assets.
  • International Consolidated Airlines Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess International Consolidated Airlines Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Airlines industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
International Consolidated Airlines Group has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

IAG Health

 How is International Consolidated Airlines Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up International Consolidated Airlines Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of International Consolidated Airlines Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from International Consolidated Airlines Group Company Filings, last reported 2 months ago.

LSE:IAG Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 6,720.00 7,509.00 6,232.00
2018-09-30
2018-06-30 8,080.00 7,432.00 8,102.00
2018-03-31 7,396.00 7,331.00 6,633.00
2017-12-31 6,933.00 7,331.00 6,633.00
2017-09-30
2017-06-30 5,063.00 8,024.00 7,899.00
2017-03-31 5,664.00 8,515.00 6,381.00
2016-12-31 5,664.00 8,515.00 6,381.00
2016-09-30
2016-06-30 4,787.00 8,819.00 6,561.00
2016-03-31 5,534.00 8,630.00 5,807.00
2015-12-31 5,534.00 8,630.00 5,807.00
2015-09-30
2015-06-30 5,082.00 7,116.00 6,421.00
2015-03-31 3,793.00 6,617.00 4,944.00
2014-12-31 3,793.00 6,617.00 4,944.00
2014-09-30
2014-06-30 4,570.00 5,673.00 4,904.00
2014-03-31 4,216.00 5,122.00 3,633.00
2013-12-31 4,216.00 5,122.00 3,633.00
2013-09-30
2013-06-30 2,437.00 4,666.00 3,627.00
2013-03-31 2,978.00 4,798.00 2,909.00
2012-12-31 2,978.00 4,798.00 2,909.00
2012-09-30
2012-06-30 5,482.00 5,321.00 4,013.00
2012-03-31 5,686.00 4,883.00 3,735.00
  • International Consolidated Airlines Group's level of debt (111.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (121.5% vs 111.7% today).
  • Debt is well covered by operating cash flow (43.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 16.8x coverage).
X
Financial health checks
We assess International Consolidated Airlines Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. International Consolidated Airlines Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

IAG Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.41%
Current annual income from International Consolidated Airlines Group dividends. Estimated to be 5.8% next year.
If you bought £2,000 of International Consolidated Airlines Group shares you are expected to receive £108 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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 (2.08%).
  • International Consolidated Airlines Group's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.27%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:IAG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Airlines Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 5.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 704 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.1%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:IAG Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.54 2.00
2021-12-31 0.38 10.00
2020-12-31 0.35 14.00
2019-12-31 0.30 11.00
LSE:IAG Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-27 0.330 5.103
2018-10-26 0.290 4.110
2018-10-25 0.290 4.387
2018-05-03 0.290 3.835
2017-10-27 0.250 3.535
2017-10-26 0.250 3.427
2017-03-28 0.250 3.695
2016-10-28 0.220 3.954
2016-10-27 0.220 4.646
2016-05-03 0.200 3.959
2015-10-30 0.200 2.726
2015-10-29 0.200 2.425

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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 3 years.
Current Payout to shareholders
What portion of International Consolidated Airlines Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
X
Income/ dividend checks
We assess International Consolidated Airlines Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can International Consolidated Airlines Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. International Consolidated Airlines Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

IAG Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Willie Walsh
COMPENSATION €3,429,000
AGE 56
TENURE AS CEO 8.2 years
CEO Bio

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 Officer of British Airways Plc since October 1, 2005 until 2011 and its Executive Director from May 3, 2005 to January 21, 2011. He served as Member of the Management Board of British Airways Plc. He served as the Chief Executive Officer of Aer Lingus Group Plc from October 2001 to May 2005. Mr. Walsh joined Aer Lingus Group Plc in 1979 as a Cadet Pilot and has held a number of senior positions including Chief Operations Officer and Chief Executive of its Futura subsidiary FROM 1998 to 200. He has been the Chairperson of National Treasury Management Agency since December 22, 2014. He serves as the Chairman of Aer Lingus Group plc since September 23, 2015. Mr. Walsh has been the Chairman of Aer Lingus Limited since September 2015 and Director since September1, 2015. Mr. Walsh has been an Executive Director of International Consolidated Airlines Group, S.A. since May 25, 2010. His key areas of experience is airline industry. He was the Chairman of IATA Board of Governors from 2016 to 2017 and Chief Executive Officer of Aer Lingus from 2001 to 2005. He is Member of the IATA Board of Governors. He serves as Non-Executive Director at Aer Lingus Group plc. He serves as a Member of the Board of Governors of The International Air Transport Association from 2016 to 2017. He served as a Director of Aer Lingus Group Plc from November 2001 to May 2005. He served as Non-Executive Director of Fyffes PLC from January 1, 2004 to October 31, 2007. Mr. Walsh holds Master of Science Degree in Management and Business Administration of Dublin's Trinity College in 1992.

CEO Compensation
  • Willie's compensation has been consistent with company performance over the past year.
  • Willie's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the International Consolidated Airlines Group management team in years:

7.1
Average Tenure
56
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.
Management Team

Willie Walsh

TITLE
CEO & Executive Director
COMPENSATION
€3M
AGE
56
TENURE
8.2 yrs

Enrique de Lôme Chávarri

TITLE
CFO & Executive Director
COMPENSATION
€2M
TENURE
8.2 yrs

Andrew Light

TITLE
Head of Investor Relations

Chris Haynes

TITLE
General Counsel
TENURE
8.2 yrs

Julia Simpson

TITLE
Chief of Staff
AGE
60
TENURE
8.2 yrs

Glenn Morgan

TITLE
Head of Digital Business Transformation

Álvaro Hernández

TITLE
Secretary of the Board of Directors
TENURE
5.2 yrs

Luis Martín

TITLE
Chairman & CEO of Iberia
COMPENSATION
€541K
TENURE
6 yrs

Alex Cruz de Llano

TITLE
Chairman & CEO of British Airways
TENURE
2.9 yrs

Drew Crawley

TITLE
Chief Executive Officer of Avios
AGE
51
TENURE
1.9 yrs
Board of Directors Tenure

Average tenure and age of the International Consolidated Airlines Group board of directors in years:

2.9
Average Tenure
63
Average Age
  • The average tenure for the International Consolidated Airlines Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Antonio Romero

TITLE
Chairman
COMPENSATION
€649K
AGE
67

Willie Walsh

TITLE
CEO & Executive Director
COMPENSATION
€3M
AGE
56
TENURE
8.8 yrs

Enrique de Lôme Chávarri

TITLE
CFO & Executive Director
COMPENSATION
€2M
TENURE
5.8 yrs

Luis Martín

TITLE
Chairman & CEO of Iberia
COMPENSATION
€541K
TENURE
5.2 yrs

Alex Cruz de Llano

TITLE
Chairman & CEO of British Airways
TENURE
2.9 yrs

Javier Sanchez-Prieto

TITLE
Vueling Chairman & CEO
TENURE
2.9 yrs

Sean Doyle

TITLE
CEO & Executive Director of Aer Lingus
AGE
46
TENURE
0.2 yrs

Kieran Poynter

TITLE
Non-Executive Director
COMPENSATION
€167K
AGE
67
TENURE
8.5 yrs

Marc Bolland

TITLE
Non Executive Director
COMPENSATION
€126K
AGE
59
TENURE
2.8 yrs

Patrick Cescau

TITLE
Senior Independent Director
COMPENSATION
€187K
AGE
69
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by International Consolidated Airlines Group insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
17. Mar 19 Buy William Walsh Individual 07. Mar 19 07. Mar 19 74,346 £5.54 £411,728
17. Mar 19 Buy Enrique de Lôme Chávarri Individual 07. Mar 19 07. Mar 19 26,418 £5.54 £146,303
16. Jul 18 Buy Lucy Shaw Individual 12. Jul 18 12. Jul 18 22 £6.70 £147
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Management checks
We assess International Consolidated Airlines Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. International Consolidated Airlines Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

IAG News

Simply Wall St News

Is International Consolidated Airlines Group, S.A. (LON:IAG) A Cash Cow?

I’ve analysed below, the health and outlook of International Consolidated Airlines Group’s cash flow, which will help you understand the stock from a cash standpoint. … Is International Consolidated Airlines Group generating enough cash. … Free cash flow (FCF) is the amount of cash International Consolidated Airlines Group has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.

Simply Wall St -

What Do Analysts Think About International Consolidated Airlines Group, S.A.'s (LON:IAG) Growth?

Looking at International Consolidated Airlines Group, S.A.'s (LON:IAG) recent earnings update on 31 December 2018, … with earnings expected to decline by -20% in the upcoming year

Simply Wall St -

Should You Be Impressed By International Consolidated Airlines Group, S.A.'s (LON:IAG) ROE?

To keep the lesson grounded in practicality, we'll use ROE to better understand International Consolidated Airlines Group, S.A. … Over the last twelve months International Consolidated Airlines Group has recorded a ROE of 43%. … View our latest analysis for International Consolidated Airlines Group?

Simply Wall St -

Should You Worry About International Consolidated Airlines Group, S.A.'s (LON:IAG) CEO Pay?

Willie Walsh has been the CEO of International Consolidated Airlines Group, S.A. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … View our latest analysis for International Consolidated Airlines Group

Simply Wall St -

Is International Consolidated Airlines Group SA's (LON:IAG) ROE Of 36% Impressive?

We'll use ROE to examine International Consolidated Airlines Group SA (LON:IAG), by way of a worked example. … Our data shows International Consolidated Airlines Group has a return on equity of 36% for the last year. … View our latest analysis for International Consolidated Airlines Group?

Simply Wall St -

What Should Investors Know About International Consolidated Airlines Group SA's (LON:IAG) Return On Capital?

and looking to gauge the potential return on investment in International Consolidated Airlines Group SA (LON:IAG). … International Consolidated Airlines Group stock represents an ownership share in the company. … Therefore, looking at how efficiently International Consolidated Airlines Group is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Is International Consolidated Airlines Group SA's (LON:IAG) 37.29% ROE Strong Compared To Its Industry?

International Consolidated Airlines Group SA (LON:IAG) outperformed the airlines industry on the basis of its ROE – producing a higher 37.29% relative to the peer average of 20.93% over the past 12 months. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden. … View our latest analysis for International Consolidated Airlines Group

Simply Wall St -

Has International Consolidated Airlines Group SA (LON:IAG) Improved Earnings Growth In Recent Times?

When International Consolidated Airlines Group SA (LON:IAG) released its most recent earnings update (31 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Understanding how International Consolidated Airlines Group performed requires a benchmark rather than trying to assess a standalone number at one point in time. … View out our latest analysis for International Consolidated Airlines Group.

Simply Wall St -

Is International Consolidated Airlines Group SA's (LON:IAG) PE Ratio A Signal To Buy For Investors?

and want to begin learning the link between International Consolidated Airlines Group SA (LON:IAG)’s fundamentals and stock market performance. … International Consolidated Airlines Group SA (LON:IAG) is trading with a trailing P/E of 5.6x, which is lower than the industry average of 10.1x. … While IAG might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions

Simply Wall St -

International Consolidated Airlines Group SA (LON:IAG): Time For A Financial Health Check

Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as International Consolidated Airlines Group SA (LON:IAG) a safer option. … Big corporations are much sought after by risk-averse investors who find diversified revenue streams and strong capital returns attractive. … Today we will look at International Consolidated Airlines Group’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth

Simply Wall St -

IAG Company Info

Description

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.

Details
Name: International Consolidated Airlines Group, S.A.
IAG
Exchange: LSE
Founded: 2010
£10,340,982,505
1,983,310,799
Website: http://www.iairgroup.com
Address: International Consolidated Airlines Group, S.A.
El Caserío,
Iberia Zona Industrial nº 2(La Muñoza),
Madrid,
Madrid, 28042,
Spain
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE IAG Ordinary Shares London Stock Exchange GB GBP 24. Jan 2011
OTCPK BABW.F Ordinary Shares Pink Sheets LLC US USD 24. Jan 2011
DB INR Ordinary Shares Deutsche Boerse AG DE EUR 24. Jan 2011
WBAG IAG Ordinary Shares Wiener Boerse AG AT EUR 24. Jan 2011
BME IAG Ordinary Shares Bolsas y Mercados Espanoles ES EUR 24. Jan 2011
BATS-CHIXE IAGE Ordinary Shares BATS 'Chi-X Europe' GB EUR 24. Jan 2011
BATS-CHIXE IAGL Ordinary Shares BATS 'Chi-X Europe' GB GBP 24. Jan 2011
OTCPK ICAG.Y SPONSORED ADR Pink Sheets LLC US USD 24. Jan 2011
Number of employees
Current staff
Staff numbers
63,531
International Consolidated Airlines Group employees.
Industry
Airlines
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/24 21:33
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/20
Last earnings filing: 2019/03/05
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.