Fact based stock research
IAG (LSE:IAG)

ES0177542018

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

IAG stock research in summary

iairgroup.comes

ANALYSIS: With an Obermatt Combined Rank of 50 (better than 50% compared with investment alternatives), IAG (Airlines, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of IAG are a good value (attractively priced) with a consolidated Value Rank of 50 (better than 50% of alternatives), show above-average growth (Growth Rank of 88) but are riskily financed (Safety Rank of 14), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 50, is a buy recommendation based on IAG's financial characteristics. As the company IAG's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 50) and above-average growth (Obermatt Growth Rank of 88), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 14) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	50
Growth Rank	88
Safety Rank	14
Combined Rank	50

Country	United Kingdom
Industry	Airlines
Index	FTSE All Shares, FTSE 100, FTSE 350, IBEX 35, Low Emissions, Energy Efficient, Sound Pay Europe
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: IAG

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	3	43	52	50
GROWTH
GROWTH	14	55	72	88
SAFETY
SAFETY	51	5	5	14
SENTIMENT
SENTIMENT	n/a	9	47	^new
360° VIEW
360° VIEW	n/a	5	34	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better IAG is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	3	43	52	50
GROWTH
GROWTH	14	55	72	88
SAFETY
SAFETY	51	5	5	14
COMBINED
COMBINED	3	16	32	50

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of IAG the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 50 (better than 50% compared with alternatives), IAG shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for IAG. Price-to-Sales (P/S) is 65, which means that the stock price compared with what market professionals expect for future sales is lower than for 65% of comparable companies, indicating a good value concerning IAG's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 75% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 51 (dividends are expected to be higher than 51% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 81% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for IAG to 19. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 50, is a buy recommendation based on IAG's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	23	69	73	65
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	32	7	78	75
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	4	100	31	19
DIVIDEND YIELD
DIVIDEND YIELD	1	20	29	51
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	3	43	52	50

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of IAG; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 88 (better than 88% compared with alternatives) for 2024, IAG shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for IAG. Profit Growth has a rank of 57 which means that currently professionals expect the company to grow its profits more than 57% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 84, and Stock Returns has a rank of 90 which means that the stock returns have recently been above 90% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 40 (60% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 88, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	11	98	37	40
PROFIT GROWTH
PROFIT GROWTH	42	23	100	57
CAPITAL GROWTH
CAPITAL GROWTH	n/a	61	35	84
STOCK RETURNS
STOCK RETURNS	87	23	64	90
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	14	55	72	88

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of IAG.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 14 (better than 14% compared with alternatives), the company IAG has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of IAG is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for IAG. Liquidity is at 42, meaning that the company generates less profit to service its debt than 58% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 11, meaning the company has an above-average debt-to-equity ratio. It has more debt than 89% of its competitors. Finally, Refinancing is at a rank of 16 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 84% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 14 (worse than 86% compared with alternatives), IAG has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of IAG because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	44	12	8	11
REFINANCING
REFINANCING	80	15	11	16
LIQUIDITY
LIQUIDITY	32	12	16	42
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	51	5	5	14

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of IAG and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	28	41	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	60	79	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	41	36	^new
MARKET PULSE
MARKET PULSE	n/a	6	45	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	9	47	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for IAG.
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