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 39 (worse than 61% compared with investment alternatives), InterContinental Hotels (Hotels, Resorts & Cruise Lines, United Kingdom) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of InterContinental Hotels are low in value (priced high) with a consolidated Value Rank of 37 (worse than 63% of alternatives), and are riskily financed (Safety Rank of 45, which means above-average debt burdens) but show above-average growth (Growth Rank of 61). ...read more

RECOMMENDATION: A Combined Rank of 39, is a hold recommendation based on InterContinental Hotels's financial characteristics. As the company InterContinental Hotels shows low value with an Obermatt Value Rank of 37 (63% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 61% of comparable companies (Obermatt Growth Rank is 61). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 45 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for InterContinental Hotels, even a low-value company (in terms of its key financial indicators) can be a good investment. 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	37
Growth Rank	61
Safety Rank	45
Combined Rank	39

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	X-Large

This stock has achievements: Gold Winner CEO.

19-Dec-2024. 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	2021	2022	2023	2024
VALUE
VALUE	56	59	24	37
GROWTH
GROWTH	75	74	78	61
SAFETY
SAFETY	88	49	41	45
SENTIMENT
SENTIMENT	n/a	28	59	^new
360° VIEW
360° VIEW	n/a	55	46	^new

Most recent update of the stock research: 19-Dec-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 InterContinental Hotels is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	56	59	24	37
GROWTH
GROWTH	75	74	78	61
SAFETY
SAFETY	88	49	41	45
COMBINED
COMBINED	80	74	42	39

Last update of combined financial performance: 19-Dec-2024. 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 37 (worse than 63% 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 50% of comparable companies (a Dividend Yield rank of 50), 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 93, which means that the stock price is lower compared with invested capital than for 93% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 7 which means that the stock price compared with what market professionals expect for future profits is higher than for 93% 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 17. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 83% 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 37, 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	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	24	5	3	7
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	73	43	15	17
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	94	100	97	93
DIVIDEND YIELD
DIVIDEND YIELD	1	63	51	50
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	56	59	24	37

Last update of Value Rank: 19-Dec-2024. 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 61 (better than 61% 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 half of the indicators below and half above average for InterContinental Hotels. Sales Growth has a rank of 60 which means that currently professionals expect the company to grow more than 60% of its competitors. Stock Returns are also above average with a rank of 85. But Capital Growth has only a rank of 22, which means that currently professionals expect the company to grow its invested capital less than 78% of its competitors. Profit Growth is also low, with a rank of only 44, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 61, is a buy recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 85% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. 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, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	65	60	49	60
PROFIT GROWTH
PROFIT GROWTH	35	92	44	44
CAPITAL GROWTH
CAPITAL GROWTH	n/a	44	86	22
STOCK RETURNS
STOCK RETURNS	28	36	88	85
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	75	74	78	61

Last update of Growth Rank: 19-Dec-2024. 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 45 (better than 45% compared with alternatives), the company InterContinental Hotels has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of InterContinental Hotels 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 just one indicator above average for InterContinental Hotels. Liquidity is at 79, meaning the company generates more profit to service its debt than 79% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 44, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 56% of its competitors. Leverage is also high at a rank of 1, which means that the company has an above-average debt-to-equity ratio. It has more debt than 99% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 45 (worse than 55% compared with alternatives), InterContinental Hotels has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	80	1	1	1
REFINANCING
REFINANCING	40	72	54	44
LIQUIDITY
LIQUIDITY	43	63	78	79
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	88	49	41	45

Last update of Safety Rank: 19-Dec-2024. 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	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	35	1	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	48	54	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	33	88	^new
MARKET PULSE
MARKET PULSE	n/a	55	68	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	28	59	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for InterContinental Hotels.
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