InterContinental Hotels Group PLC
InterContinental Hotels Group PLC Fundamental Analysis
InterContinental Hotels Group PLC (ICHGF) shows moderate financial fundamentals with a PE ratio of 26.21, profit margin of 14.65%, and ROE of -28.23%. The company generates $5.1B in annual revenue with moderate year-over-year growth of 5.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ICHGF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentICHGF demonstrates superior asset utilization.
Valuation Score
WeakICHGF trades at a premium to fair value.
Growth Score
ExcellentICHGF delivers strong and consistent growth momentum.
Financial Health Score
ModerateICHGF shows balanced financial health with some risks.
Profitability Score
WeakICHGF struggles to sustain strong margins.
Key Financial Metrics
Is ICHGF Expensive or Cheap?
P/E Ratio
ICHGF trades at 26.21 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ICHGF's PEG of 6.51 indicates potential overvaluation.
Price to Book
The market values InterContinental Hotels Group PLC at -7.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.17 times EBITDA. This is generally considered low.
How Well Does ICHGF Make Money?
Net Profit Margin
For every $100 in sales, InterContinental Hotels Group PLC keeps $14.65 as profit after all expenses.
Operating Margin
Core operations generate 30.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-28.23 in profit for every $100 of shareholder equity.
ROA
InterContinental Hotels Group PLC generates $14.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
InterContinental Hotels Group PLC produces operating cash flow of $887.29M, showing steady but balanced cash generation.
Free Cash Flow
InterContinental Hotels Group PLC generates strong free cash flow of $859.63M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.74 in free cash annually.
FCF Yield
ICHGF converts 4.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
-7.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.28
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.49
vs 25 benchmark
How ICHGF Stacks Against Its Sector Peers
| Metric | ICHGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.21 | 23.49 | Worse (Expensive) |
| ROE | -28.23% | 1160.00% | Weak |
| Net Margin | 14.65% | 672.00% | Weak |
| Debt/Equity | -1.82 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 0.97 | 2.56 | Weak Liquidity |
| ROA | 14.22% | -8277.00% (disorted) | Strong |
ICHGF outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews InterContinental Hotels Group PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
249.25%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
571.00%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
926.20%
Industry Style: Cyclical, Growth, Discretionary
High Growth