(IHG) InterContinental Hotels - NYSE
Sector: Consumer Cyclical | Industry: Lodging | Exchange: NYSE (USA) | Market Cap: 24.065m USD | Total Return: 42.9% in 12m
Avg Turnover: 33.0M
EPS Trend: -62.5%
Qual. Beats: -1
Rev. Trend: 98.6%
Warnings
Altman Z'' 0.95 < 1.0 - financial distress zone
Tailwinds
Supp Ema8, Supp Ema20, Idiosyncratic Leader, Confidence
InterContinental Hotels Group PLC (IHG) is a global hospitality company headquartered in Windsor, United Kingdom, operating an extensive portfolio of 19 brands ranging from luxury names like Six Senses and Regent to midscale staples such as Holiday Inn and Crowne Plaza. Founded in 1777, the company utilizes an asset-light business model, primarily generating revenue through franchising and management contracts rather than direct property ownership. This strategy allows for rapid geographic scaling and higher margins by shifting capital expenditure and property maintenance costs to third-party owners.
The company supports its global operations through the IHG Rewards loyalty program, which serves as a critical driver for direct bookings and customer retention. In the broader lodging sector, large operators like IHG benefit from significant economies of scale in marketing and technology infrastructure compared to independent hotels. Investors can further analyze these competitive advantages and valuation metrics on ValueRay. The firm’s diverse brand architecture allows it to capture market share across various price points and consumer segments globally.
- Global RevPAR growth driven by recovery in Greater China business travel
- Asset-light franchise model expansion increases operating margins and cash flow
- High interest rates and construction costs slow new hotel development pipeline
- Loyalty program engagement scales recurring revenue through IHG One Rewards platform
- Strategic midscale brand expansion captures shifting consumer demand for value lodging
| Net Income: 762.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 1.58 > 1.0 |
| NWC/Revenue: -0.98% < 20% (prev -1.20%; Δ 0.22% < -1%) |
| CFO/TA 0.17 > 3% & CFO 894.6m > Net Income 762.0m |
| Net Debt (3.90b) to EBITDA (1.32b): 2.96 < 3 |
| Current Ratio: 0.98 > 1.5 & < 3 |
| Outstanding Shares: last quarter (153.8m) vs 12m ago -7.35% < -2% |
| Gross Margin: 31.22% > 18% (prev 61.02%; Δ -29.80% > 0.5%) |
| Asset Turnover: 103.3% > 50% (prev 103.7%; Δ -0.43% > 0%) |
| Interest Coverage Ratio: 12.33 > 6 (EBIT TTM 1.17b / Interest Expense TTM 94.8m) |
| A: -0.01 (Total Current Assets 2.05b - Total Current Liabilities 2.10b) / Total Assets 5.34b |
| B: -0.06 (Retained Earnings -302.0m / Total Assets 5.34b) |
| C: 0.23 (EBIT TTM 1.17b / Avg Total Assets 5.05b) |
| D: -0.34 (Book Value of Equity -2.74b / Total Liabilities 8.08b) |
| Altman-Z'' = 0.95 = BB |
| DSRI: 1.11 (Receivables 880.0m/752.0m, Revenue 5.21b/4.92b) |
| GMI: 1.95 (GM 61.02% / 31.22%) |
| AQI: 1.04 (AQ_t 0.54 / AQ_t-1 0.52) |
| SGI: 1.06 (Revenue 5.21b / 4.92b) |
| TATA: -0.02 (NI 762.0m - CFO 894.6m) / TA 5.34b) |
| Beneish M = -2.01 (Cap -4..+1) = BB |
As of June 12, 2026, the stock is trading at USD 164.43 with a total of 224,304 shares traded.
Over the past week, the price has changed by +2.44%,
over one month by +10.93%,
over three months by +23.50% and
over the past year by +42.88%.
InterContinental Hotels has received a consensus analysts rating of 3.75. Therefore, it is recommended to hold IHG.
- StrongBuy: 1
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 138.7 | -15.7% |
P/E Trailing = 33.3642
P/E Forward = 26.8817
P/S = 4.6378
P/B = 25.8882
P/EG = 1.5257
Revenue TTM = 5.21b USD
EBIT TTM = 1.17b USD
EBITDA TTM = 1.32b USD
Long Term Debt = 3.72b USD (from longTermDebt, last quarter)
Short Term Debt = 506.0m USD (from shortTermDebt, last quarter)
Debt = 5.03b USD (from shortLongTermDebtTotal, last quarter) + Leases 406.0m
Net Debt = 3.90b USD (calculated: Debt 5.03b - CCE 1.13b)
Enterprise Value = 28.0b USD (24.1b + Debt 5.03b - CCE 1.13b)
Interest Coverage Ratio = 12.33 (Ebit TTM 1.17b / Interest Expense TTM 94.8m)
EV/FCF = 32.26x (Enterprise Value 28.0b / FCF TTM 866.7m)
FCF Yield = 3.10% (FCF TTM 866.7m / Enterprise Value 28.0b)
FCF Margin = 16.63% (FCF TTM 866.7m / Revenue TTM 5.21b)
Net Margin = 14.62% (Net Income TTM 762.0m / Revenue TTM 5.21b)
Gross Margin = 31.22% ((Revenue TTM 5.21b - Cost of Revenue TTM 3.58b) / Revenue TTM)
Gross Margin QoQ = 36.67% (prev 25.49%)
Tobins Q-Ratio = 5.23 (Enterprise Value 28.0b / Total Assets 5.34b)
Interest Expense / Debt = 1.89% (Interest Expense 94.8m / Debt 5.03b)
Taxrate = 29.31% (316.4m / 1.08b)
NOPAT = 825.8m (EBIT 1.17b * (1 - 29.31%))
Current Ratio = 0.98 (Total Current Assets 2.05b / Total Current Liabilities 2.10b)
Debt / Equity = -1.83 (negative equity) (Debt 5.03b / totalStockholderEquity, last quarter -2.74b)
Debt / EBITDA = 2.96 (Net Debt 3.90b / EBITDA 1.32b)
Debt / FCF = 4.50 (Net Debt 3.90b / FCF TTM 866.7m)
Total Stockholder Equity = -2.48b (last 4 quarters mean from totalStockholderEquity)
RoA = 15.10% (Net Income 762.0m / Total Assets 5.34b)
RoE = -30.79% (negative equity) (Net Income TTM 762.0m / Total Stockholder Equity -2.48b)
RoCE = 93.62% (EBIT 1.17b / Capital Employed (Equity -2.48b + L.T.Debt 3.72b))
RoIC = 23.66% (NOPAT 825.8m / Invested Capital 3.49b)
WACC = 8.00% (E(24.1b)/V(29.1b) * Re(9.39%) + D(5.03b)/V(29.1b) * Rd(1.89%) * (1-Tc(0.29)))
Discount Rate = 9.39% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -96.61 | Cagr: -6.52%
[DCF] Terminal Value 77.97% ; FCFF base≈798.0m ; Y1≈914.8m ; Y5≈1.35b
[DCF] Fair Price = 110.3 (EV 20.3b - Net Debt 3.90b = Equity 16.4b / Shares 148.4m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -62.45 | EPS CAGR: -10.58% | SUE: -4.0 | # QB: -1
Revenue Correlation: 98.60 | Revenue CAGR: 43.47% | SUE: N/A | # QB: 0
EPS current Year (2026-12-31): EPS=5.92 | Chg30d=+0.13% | Revisions=+43% | GrowthEPS=+18.0% | GrowthRev=+6.7%
EPS next Year (2027-12-31): EPS=6.80 | Chg30d=+2.14% | Revisions=+14% | GrowthEPS=+15.0% | GrowthRev=+5.4%
[Analyst] Revisions Ratio: +43%