InterContinental Hotels Group Plc (IHG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Whitbread Plc

Hydro Hotel Eastbourne Plc

InterContinental Hotels Group Plc

Safestay PLC

PPHE Hotel Group Ltd.

Roadside Real Estate Plc

Minoan Group Plc

Mandarin Oriental International Ltd.

Carnival Plc

Why is InterContinental Hotels Group Plc ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

Poor long term growth as Net Sales has grown by an annual rate of 1.40% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 0.55%, its profits have risen by 14.3% ; the PEG ratio of the company is 2.7

Underperformed the market in the last 1 year

The stock has generated a return of 0.55% in the last 1 year, much lower than market (FTSE 100) returns of 15.94%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is InterContinental Hotels Group Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

InterContinental Hotels Group Plc

0.55%

1.11

23.47%

FTSE 100

15.94%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.40%

EBIT Growth (5y)

6.88%

EBIT to Interest (avg)

7.41

Debt to EBITDA (avg)

1.30

Net Debt to Equity (avg)

-0.99

Sales to Capital Employed (avg)

1.37

Tax Ratio

1.84%

Dividend Payout Ratio

41.59%

Pledged Shares

Institutional Holding

0.87%

ROCE (avg)

49.27%

ROE (avg)

167.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

-7.29

EV to EBIT

42.73

EV to EBITDA

36.99

EV to Capital Employed

48.66

EV to Sales

14.11

PEG Ratio

2.70

Dividend Yield

0.48%

ROCE (Latest)

113.87%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 1,261.85 MM

DIVIDEND PER SHARE(HY)

Highest at GBP 5.31

RAW MATERIAL COST(Y)

Fallen by -1.37% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -131.73 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1,001.35%

OPERATING PROFIT(Q)

Highest at GBP 551.4 MM

PRE-TAX PROFIT(Q)

Highest at GBP 508.22 MM

NET PROFIT(Q)

Highest at GBP 378.23 MM

EPS(Q)

Highest at GBP 2.29

-2What is not working for the Company

CASH AND EQV(HY)

Lowest at GBP 451.71 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.31%

Here's what is working for InterContinental Hotels Group Plc

Operating Cash Flow

Highest at GBP 1,261.85 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Dividend per share

Highest at GBP 5.31 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Operating Profit

Highest at GBP 551.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Pre-Tax Profit

Highest at GBP 508.22 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 378.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

EPS

Highest at GBP 2.29

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Debt-Equity Ratio

Lowest at -131.73 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1,001.35%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -1.37% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for InterContinental Hotels Group Plc

Cash and Eqv

Lowest at GBP 451.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 5.31%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at GBP 0.17 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income