Fact based stock research
InterContinental Hotels (LSE:IHG)

GB00BHJYC057

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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.

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InterContinental Hotels stock research in summary

ihgplc.com

ANALYSIS: With an Obermatt Combined Rank of 68 (better than 68% compared with investment alternatives), InterContinental Hotels (Hotels, Resorts & Cruise Lines, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of InterContinental Hotels are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives). But they show above-average growth (Growth Rank of 65) and are safely financed (Safety Rank of 50, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 68, is a buy recommendation based on InterContinental Hotels's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company InterContinental Hotels exhibits low value (Obermatt Value Rank of 45), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 65). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 50) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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	45
Growth Rank	65
Safety Rank	50
Combined Rank	68

Country	United Kingdom
Industry	Hotels, Resorts & Cruise Lines
Index	FTSE All Shares, FTSE 100, FTSE 350, Employee Focus EU, Human Rights, Low Waste, Recycling
Size class	Large

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Research History: InterContinental Hotels

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	59	24	39	45
GROWTH
GROWTH	74	78	73	65
SAFETY
SAFETY	49	41	27	50
SENTIMENT
SENTIMENT	28	59	62	^new
360° VIEW
360° VIEW	55	46	55	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Dec-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better InterContinental Hotels is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	59	24	39	45
GROWTH
GROWTH	74	78	73	65
SAFETY
SAFETY	49	41	27	50
COMBINED
COMBINED	74	42	44	68

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of InterContinental Hotels the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), InterContinental Hotels shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for InterContinental Hotels. Expected dividend yields are higher than for 51% of comparable companies (a Dividend Yield rank of 51), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 97, which means that the stock price is lower compared with invested capital than for 97% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 5 which means that the stock price compared with what market professionals expect for future profits is higher than for 95% of comparable companies, indicating a low value concerning InterContinental Hotels's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for InterContinental Hotels with a rank of 19. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 81% of comparable companies, indicating a low value concerning InterContinental Hotels's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on InterContinental Hotels's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, InterContinental Hotels may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	5	3	7	5
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	43	15	17	19
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	100	97	93	97
DIVIDEND YIELD
DIVIDEND YIELD	63	51	50	51
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	59	24	39	45

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of InterContinental Hotels; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 65 (better than 65% compared with alternatives), InterContinental Hotels shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for InterContinental Hotels. Sales Growth has a value of 58, which means that, currently, professionals expect the company to grow more than 58% of its competitors. The same is valid for Profit Growth with a value of 50 and for Capital Growth with 75. In addition, Stock Returns had an above-average rank value of 51, which means they have been higher than 51% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 65, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, InterContinental Hotels exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. 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	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	60	49	49	58
PROFIT GROWTH
PROFIT GROWTH	92	44	64	50
CAPITAL GROWTH
CAPITAL GROWTH	44	86	47	75
STOCK RETURNS
STOCK RETURNS	36	88	73	51
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	74	78	73	65

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of InterContinental Hotels.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 50 (better than 50% compared with alternatives), the company InterContinental Hotels has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of InterContinental Hotels is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for InterContinental Hotels. Refinancing is at 53, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 53% of its competitors. Liquidity is also good at 62, meaning the company generates more profit to service its debt than 62% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 2, which means the company has an above-average debt-to-equity ratio. It has more debt than 98% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 50 (better than 50% compared with alternatives), InterContinental Hotels has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and InterContinental Hotels could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with InterContinental Hotels and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	1	1	1	2
REFINANCING
REFINANCING	72	54	47	53
LIQUIDITY
LIQUIDITY	63	78	44	62
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	49	41	27	50

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of InterContinental Hotels and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	1	3	^new
OPINIONS CHANGE
OPINIONS CHANGE	48	54	50	^new
PRO HOLDINGS
PRO HOLDINGS	33	88	74	^new
MARKET PULSE
MARKET PULSE	55	68	87	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	28	59	62	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for InterContinental Hotels.
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