OTCPK:BABW.F

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

0%

BABW.F

2.6%

US Airlines

3.4%

US Market


1 Year Return

-24.3%

BABW.F

-0.2%

US Airlines

5.4%

US Market

Return vs Industry: BABW.F underperformed the US Airlines industry which returned -0.2% over the past year.

Return vs Market: BABW.F underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

BABW.FIndustryMarket
7 Day0%2.6%3.4%
30 Day5.7%-5.0%-1.0%
90 Dayn/a-6.3%-0.4%
1 Year-24.3%-24.3%1.2%-0.2%7.7%5.4%
3 Year19.0%19.0%31.9%26.8%46.2%36.8%
5 Year1.2%1.2%57.4%48.5%65.6%47.5%

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

No news available

Valuation

Is International Consolidated Airlines Group undervalued compared to its fair value and its price relative to the market?

49.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BABW.F ($5.96) is trading below our estimate of fair value ($11.83)

Significantly Undervalued: BABW.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BABW.F is good value based on its PE Ratio (5.2x) compared to the Airlines industry average (8.9x).

PE vs Market: BABW.F is good value based on its PE Ratio (5.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BABW.F is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: BABW.F is overvalued based on its PB Ratio (1.9x) compared to the US Airlines industry average (1.7x).


Next Steps

Future Growth

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

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BABW.F's forecast earnings growth (7.8% per year) is above the savings rate (2.7%).

Earnings vs Market: BABW.F's earnings (7.8% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: BABW.F's revenue (4.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BABW.F's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BABW.F's Return on Equity is forecast to be high in 3 years time (23.2%)


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

Earnings Trend: BABW.F's earnings have grown significantly by 21.4% per year over the past 5 years.

Accelerating Growth: BABW.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BABW.F had negative earnings growth (-17.5%) over the past year, making it difficult to compare to the Airlines industry average (-30.9%).


Return on Equity

High ROE: BABW.F's Return on Equity (34.9%) is considered high.


Return on Assets

ROA vs Industry: BABW.F has a higher Return on Assets than the Airlines industry average last year.


Return on Capital Employed

ROCE Improving: BABW.F has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is International Consolidated Airlines Group's financial position?


Financial Position Analysis

Short Term Liabilities: BABW.F's short term assets (€12.5B) do not cover its short term liabilities (€14.8B)

Long Term Liabilities: BABW.F's short term assets (12.5B) do not cover its long term liabilities (14.7B)


Debt to Equity History and Analysis

Debt Level: BABW.F's debt to equity ratio (23.8%) is considered satisfactory

Reducing Debt: BABW.F's debt to equity ratio has reduced from 26.9% to 23.8% over the past 5 years.

Debt Coverage: BABW.F's debt is well covered by operating cash flow (243.1%).

Interest Coverage: BABW.F's interest payments on its debt are well covered by EBIT (9.3x coverage).


Balance Sheet

Inventory Level: BABW.F has a high level of physical assets or inventory.

Debt Coverage by Assets: BABW.F's debt is covered by short term assets (assets are 8.021730x debt).


Next Steps

Dividend

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

5.55%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years5.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BABW.F's dividend (5.55%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: BABW.F's dividend (5.55%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: Whilst dividend payments have been stable, BABW.F has been paying a dividend for less than 10 years.

Growing Dividend: BABW.F's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.3%), BABW.F's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BABW.F's dividends in 3 years are forecast to be well covered by earnings (20.9% payout ratio).


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?

6.2yrs

Average management tenure


CEO

Willie Walsh (57yo)

8.8yrs

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 ($USD3.78M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

6.2yrs

Average Tenure

57yo

Average Age

Experienced Management: BABW.F's management team is seasoned and experienced (6.2 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

60yo

Average Age

Experienced Board: BABW.F's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€1,00507 Aug 19
Lucy Shaw
EntityIndividual
Shares168
Max Price€7.50
Buy€1,00806 Aug 19
Lucy Shaw
EntityIndividual
Shares168
Max Price€7.53
Sell€4,592,51717 May 19
William Walsh
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares700,000
Max Price€6.57
Sell€4,581,84615 May 19
William Walsh
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares700,000
Max Price€6.56
Buy€191,58117 Mar 19
Enrique de Lôme Chávarri
EntityIndividual
Shares26,418
Max Price€7.25
Buy€539,15017 Mar 19
William Walsh
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares74,346
Max Price€7.25

Ownership Breakdown


Management Team

  • Willie Walsh (57yo)

    CEO & Executive Director

    • Tenure: 8.8yrs
    • Compensation: €3.43m
  • Andrew Light

    Head of Investor Relations

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

    Chief of Staff

    • Tenure: 8.8yrs
  • Drew Crawley (52yo)

    Chief Executive Officer of Avios

    • Tenure: 2.5yrs
  • Chris Haynes

    General Counsel

    • Tenure: 8.8yrs
  • Steve Gunning

    CFO & Executive Director

    • Tenure: 0.3yrs
  • Álvaro López-Jorrín Hernández

    Secretary of the Board of Directors

    • Tenure: 5.8yrs
  • Luis Gallego Martín

    Chairman & CEO of Iberia

    • Tenure: 5.8yrs
    • Compensation: €541.00k
  • Alex Cruz de Llano

    Chairman & CEO of British Airways

    • Tenure: 3.5yrs
  • 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: 8.8yrs
    • Compensation: €3.43m
  • Kieran Poynter (68yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: €167.00k
  • Antonio Vázquez Romero (68yo)

    Independent Chairman

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

    CEO & Executive Director of Aer Lingus

    • Tenure: 0.8yrs
  • Steve Gunning

    CFO & Executive Director

    • Tenure: 0.3yrs
  • Luis Gallego Martín

    Chairman & CEO of Iberia

    • Tenure: 5.8yrs
    • Compensation: €541.00k
  • Alberto Terol Esteban

    Senior Independent Director

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

    Chairman & CEO of British Airways

    • Tenure: 3.5yrs
  • Javier Sanchez-Prieto

    Vueling Chairman & CEO

    • Tenure: 3.5yrs

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: BABW.F
  • Exchange: OTCPK
  • Founded: 2010
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: UK£10.223b
  • Listing Market Cap: UK£13.026b
  • 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)SPON ADR EACH REPR 2 ORD SHSUSUSDJan 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
0A2LLSE (London Stock Exchange)SPON ADR EACH REPR 2 ORD SHSGBEURJan 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 Analysis2019/10/16 00:11
End of Day Share Price2019/09/24 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.