Intercontinental Hotels Group American Depositary Shares (Each representing one Ordinary Share) (IHG)
StalwartFairStock Score: 47/100 — MIXED
Key Financials
| Current Price | $148.58 |
| Market Cap | $21.6B |
| P/E Ratio | 30.57 |
| ROE | —% |
| Dividend Yield | 1.14% |
| Sector | Consumer Cyclical |
Strengths
- Generates $684 million in annual free cash flow (3.2% yield on market cap)
- Established organization with 13,049 employees providing operational scale
Concerns
- Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
- Altman Z-Score of 1.5 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
Intercontinental Hotels Group American Depositary Shares (Each representing one Ordinary Share) is a mid-cap consumer cyclical company valued at $21.6 billion. The business generates $5.2 billion in annual revenue with a 1.5% net margin and $684 million in free cash flow. From a quality standpoint, Intercontinental shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.5 warrants caution. On valuation, the stock is trading at a premium 30.5x earnings, with 3.2% FCF yield. The 1.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 52/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $684 million in annual free cash flow (3.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 31x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer