International Consolidated Airlines Group SA (IAG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

easyJet Plc

Jet2 Plc

International Consolidated Airlines Group SA

Wizz Air Holdings Plc

Avation Plc

Gama Aviation Plc

Why is International Consolidated Airlines Group SA ?

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 21.96% and Operating profit at 91.58%

The company has declared Positive results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Highest at GBP 9,035.1 MM
DEBT-EQUITY RATIO (HY) Lowest at 91.7 %
PRE-TAX PROFIT(Q) At GBP 1,676.14 MM has Grown at 83.82%

With ROE of 16.54%, it has a attractive valuation with a 2.56 Price to Book Value

Over the past year, while the stock has generated a return of 17.63%, its profits have risen by 2.8% ; the PEG ratio of the company is 4.5

Consistent Returns over the last 3 years

Along with generating 17.63% returns in the last 1 year, the stock has outperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to International Consolidated Airlines Group SA should be less than 10%
Overall Portfolio exposure to Airline should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is International Consolidated Airlines Group SA for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

International Consolidated Airlines Group SA

17.63%

-1.42

35.52%

FTSE 100

13.98%

1.02

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.96%

EBIT Growth (5y)

91.58%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.14

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

1.39

Tax Ratio

15.79%

Dividend Payout Ratio

11.31%

Pledged Shares

Institutional Holding

0.07%

ROCE (avg)

230.16%

ROE (avg)

18.55%

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

2.56

EV to EBIT

10.09

EV to EBITDA

6.50

EV to Capital Employed

2.50

EV to Sales

1.04

PEG Ratio

4.51

Dividend Yield

2.83%

ROCE (Latest)

24.73%

ROE (Latest)

16.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 9,035.1 MM

DEBT-EQUITY RATIO (HY)

Lowest at 91.7 %

PRE-TAX PROFIT(Q)

At GBP 1,676.14 MM has Grown at 83.82%

DIVIDEND PAYOUT RATIO(Y)

Highest at 14.82%

RAW MATERIAL COST(Y)

Fallen by -10.19% (YoY

DIVIDEND PER SHARE(HY)

Highest at GBP 15.59

NET PROFIT(Q)

At GBP 1,250.14 MM has Grown at 58.31%

-4What is not working for the Company

ROCE(HY)

Lowest at 57.5%

INVENTORY TURNOVER RATIO(HY)

Lowest at 42.63 times

Here's what is working for International Consolidated Airlines Group SA

Operating Cash Flow

Highest at GBP 9,035.1 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)

Pre-Tax Profit

At GBP 1,676.14 MM has Grown at 83.82%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Debt-Equity Ratio

Lowest at 91.7 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Net Profit

At GBP 1,250.14 MM has Grown at 58.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Dividend per share

Highest at GBP 15.59

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Dividend Payout Ratio

Highest at 14.82%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -10.19% (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

Depreciation

Highest at GBP 1,103.39 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for International Consolidated Airlines Group SA

Inventory Turnover Ratio

Lowest at 42.63 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio