InterContinental Hotels (IHG) Stock Analysis
This is a peer-relative look at InterContinental Hotels (IHG): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Services peers, so every number reads in context rather than in isolation.
Company Profile
InterContinental Hotels (IHG) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.
| Profile Item | IHG |
|---|---|
| Name | InterContinental Hotels Group PLC ADR |
| Country/Region | United Kingdom |
| GICS Sector | Consumer Discretionary |
| GICS Industry Group | Consumer Services |
| GICS Industry | Hotels, Restaurants & Leisure |
| GICS Sub-Industry | Hotels, Resorts & Cruise Lines |
| Market Capitalization | 26.05 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | April 10, 2003 |
| Security Type | ADR |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: IHG | Industry group median |
|---|---|---|
| Total Return (1Y) | 39.88% | 2.96% |
| Total Return (3Y, Annualized) | 37.41% | 9.94% |
| Total Return (5Y, Annualized) | 22.58% | 1.66% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: IHG | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 25.00% | 42.89% |
| Beta (5Y) | 1.09 | 1.05 |
| Max Drawdown (5Y) | -32.78% | -59.81% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: IHG | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 1.42 | -0.04 |
| Sortino Ratio (1Y) | 2.31 | -0.08 |
Profitability
ROE (TTM)
No usable ROE is available for InterContinental Hotels (IHG) this period, so the shareholder-equity return read is skipped.
IHG
Consumer Services industry group
--
Group distribution
- Max
- 76.75%
- Q3
- 34.07%
- Median
- 15.90%
- Q1
- 3.23%
- Min
- -40.61%
- IHG
- --
Largest peers
- RCL
- 41.29%
- ABNB
- 35.79%
- IHG
- --
- MCD
- --
- SBUX
- --
- BKNG
- --
- MAR
- --
Net Margin (TTM)
InterContinental Hotels (IHG) keeps 13.40% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
IHG
Consumer Services industry group
13.40%
Group distribution
- Max
- 25.52%
- IHG
- 13.40%
- Q3
- 12.95%
- Median
- 6.63%
- Q1
- 1.46%
- Min
- -14.36%
Largest peers
- MAR
- 35.00%
- MCD
- 32.38%
- BKNG
- 25.52%
- RCL
- 23.79%
- ABNB
- 23.02%
- IHG
- 13.40%
- SBUX
- 6.67%
Operating Margin (TTM)
InterContinental Hotels (IHG) turns 25.12% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
IHG
Consumer Services industry group
25.12%
Group distribution
- Max
- 49.05%
- IHG
- 25.12%
- Q3
- 24.35%
- Median
- 14.23%
- Q1
- 5.67%
- Min
- -16.47%
Largest peers
- MAR
- 66.18%
- MCD
- 48.29%
- ABNB
- 41.51%
- BKNG
- 38.69%
- RCL
- 33.61%
- IHG
- 25.12%
- SBUX
- 12.76%
Profitability Metrics
| Metric | Current stock: IHG | Industry group median |
|---|---|---|
| ROE (TTM) | -- | 15.90% |
| ROA (TTM) | 15.51% | 5.29% |
| Net Margin (TTM) | 13.40% | 6.63% |
| Operating Margin (TTM) | 25.12% | 14.23% |
| Gross Margin (TTM) | 60.97% | 44.51% |
Growth
Revenue Growth
InterContinental Hotels (IHG) grew revenue 5.40%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
No usable EPS growth is available for InterContinental Hotels (IHG) this period, so the earnings-momentum read is skipped.
Growth Metrics
| Metric | Current stock: IHG | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 5.40% | 6.55% |
| Revenue Growth (3Y CAGR) | 10.06% | 10.51% |
| EPS Growth (YoY) | -- | 10.50% |
| EPS Growth (3Y CAGR) | 33.17% | 14.33% |
Financial Strength
Current Ratio (MRQ)
InterContinental Hotels (IHG) has current ratio of 0.66, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
IHG
Consumer Services industry group
0.66
Group distribution
- Max
- 3.41
- Q3
- 1.85
- Median
- 1.06
- Q1
- 0.72
- IHG
- 0.66
- Min
- 0.22
Largest peers
- ABNB
- 1.73
- BKNG
- 1.12
- SBUX
- 0.76
- IHG
- 0.66
- MAR
- 0.53
- RCL
- 0.22
- MCD
- --
Debt / Equity (MRQ)
No usable debt-to-equity ratio is available for InterContinental Hotels (IHG) this period, so the balance-sheet leverage read is skipped.
IHG
Consumer Services industry group
--
Group distribution
- Max
- 6.12
- Q3
- 2.93
- Median
- 1.29
- Q1
- 0.37
- Min
- 0.01
- IHG
- --
Largest peers
- RCL
- 1.94
- ABNB
- 0.27
- IHG
- --
- MCD
- --
- SBUX
- --
- BKNG
- --
- MAR
- --
Financial Strength Metrics
| Metric | Current stock: IHG | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.66 | 1.06 |
| Debt / Equity (MRQ) | -- | 1.29 |
| Net Debt / EBITDA | 2.89 | 3.12 |
Dividends
Dividend Yield (TTM)
InterContinental Hotels (IHG) has dividend yield of 1.08%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
IHG
Consumer Services industry group
1.08%
Group distribution
- Max
- 4.10%
- Q3
- 1.82%
- IHG
- 1.08%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MCD
- 2.68%
- SBUX
- 2.35%
- RCL
- 1.70%
- IHG
- 1.08%
- BKNG
- 0.98%
- MAR
- 0.67%
- ABNB
- 0.00%
Dividend Payout Ratio (TTM)
InterContinental Hotels (IHG) has payout ratio of 39.21%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
IHG
Consumer Services industry group
39.21%
Group distribution
- Max
- 89.80%
- IHG
- 39.21%
- Q3
- 36.83%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- SBUX
- 142.77%
- MCD
- 58.86%
- IHG
- 39.21%
- RCL
- 32.54%
- MAR
- 27.92%
- BKNG
- 17.84%
- ABNB
- 0.00%
Dividend Metrics
| Metric | Current stock: IHG | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 1.08% | 0.00% |
| Dividend Payout Ratio (TTM) | 39.21% | 0.00% |
Valuation
P/E Ratio (TTM)
InterContinental Hotels (IHG) trades at P/E ratio of 37.95, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
IHG
Consumer Services industry group
37.95
Group distribution
- Max
- 71.70
- IHG
- 37.95
- Q3
- 37.12
- Median
- 21.88
- Q1
- 13.00
- Min
- 5.72
Largest peers
- SBUX
- 47.70
- MAR
- 41.52
- IHG
- 37.95
- ABNB
- 35.65
- MCD
- 21.88
- RCL
- 19.36
- BKNG
- 17.43
P/S Ratio (TTM)
InterContinental Hotels (IHG) trades at 4.89 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
IHG
Consumer Services industry group
4.89
Group distribution
- Max
- 6.40
- IHG
- 4.89
- Q3
- 3.01
- Median
- 1.54
- Q1
- 0.74
- Min
- 0.08
Largest peers
- MAR
- 14.15
- ABNB
- 8.14
- MCD
- 7.02
- IHG
- 4.89
- RCL
- 4.57
- BKNG
- 4.25
- SBUX
- 3.17
P/B Ratio (MRQ)
InterContinental Hotels (IHG) has negative P/B ratio of -53.91, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.
IHG
Consumer Services industry group
-53.91
Group distribution
- Max
- 12.02
- Q3
- 5.58
- Median
- 2.37
- Q1
- 1.09
- Min
- -4.51
- IHG
- -53.91
Largest peers
- ABNB
- 12.02
- RCL
- 7.47
- BKNG
- -11.52
- SBUX
- -15.67
- MAR
- -21.17
- IHG
- -53.91
- MCD
- -191.23
Valuation Metrics
| Metric | Current stock: IHG | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 37.95 | 21.88 |
| P/S Ratio (TTM) | 4.89 | 1.54 |
| P/B Ratio (MRQ) | -53.91 | 2.37 |
| Free Cash Flow Yield (TTM) | 3.51% | 4.54% |