IHG Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - InterContinental Hotels Group PLC - Alpha Spread
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InterContinental Hotels Group PLC
NYSE:IHG

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InterContinental Hotels Group PLC
NYSE:IHG
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Price: 108.21 USD -0.39% Market Closed
Market Cap: 17.8B USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
InterContinental Hotels Group PLC

Revenue
4.7B USD
Cost of Revenue
-3.3B USD
Gross Profit
1.4B USD
Operating Expenses
-392m USD
Operating Income
992m USD
Other Expenses
-354m USD
Net Income
638m USD

Margins Comparison
InterContinental Hotels Group PLC Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
UK
InterContinental Hotels Group PLC
NYSE:IHG
17.5B USD
29%
21%
14%
CN
H World Group Ltd
BMV:HTHTN
2.8T MXN
67%
22%
16%
US
Booking Holdings Inc
NASDAQ:BKNG
136.7B USD
0%
28%
22%
US
Airbnb Inc
NASDAQ:ABNB
84.3B USD
71%
15%
46%
US
Marriott International Inc
NASDAQ:MAR
69B USD
21%
16%
12%
US
Hilton Worldwide Holdings Inc
NYSE:HLT
55.7B USD
39%
22%
11%
US
Royal Caribbean Cruises Ltd
NYSE:RCL
44.7B USD
48%
24%
16%
CN
Trip.com Group Ltd
HKEX:9961
245.8B HKD
82%
25%
22%
US
Carnival Corp
NYSE:CCL
24.1B USD
51%
12%
4%
UK
Carnival PLC
LSE:CCL
16B GBP
36%
12%
4%
US
Expedia Group Inc
NASDAQ:EXPE
18.8B USD
89%
12%
6%
Country UK
Market Cap 17.5B USD
Gross Margin
29%
Operating Margin
21%
Net Margin
14%
Country CN
Market Cap 2.8T MXN
Gross Margin
67%
Operating Margin
22%
Net Margin
16%
Country US
Market Cap 136.7B USD
Gross Margin
0%
Operating Margin
28%
Net Margin
22%
Country US
Market Cap 84.3B USD
Gross Margin
71%
Operating Margin
15%
Net Margin
46%
Country US
Market Cap 69B USD
Gross Margin
21%
Operating Margin
16%
Net Margin
12%
Country US
Market Cap 55.7B USD
Gross Margin
39%
Operating Margin
22%
Net Margin
11%
Country US
Market Cap 44.7B USD
Gross Margin
48%
Operating Margin
24%
Net Margin
16%
Country CN
Market Cap 245.8B HKD
Gross Margin
82%
Operating Margin
25%
Net Margin
22%
Country US
Market Cap 24.1B USD
Gross Margin
51%
Operating Margin
12%
Net Margin
4%
Country UK
Market Cap 16B GBP
Gross Margin
36%
Operating Margin
12%
Net Margin
4%
Country US
Market Cap 18.8B USD
Gross Margin
89%
Operating Margin
12%
Net Margin
6%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
InterContinental Hotels Group PLC Competitors

Country Company Market Cap ROE ROA ROCE ROIC
UK
InterContinental Hotels Group PLC
NYSE:IHG
17.5B USD
-32%
15%
39%
23%
CN
H World Group Ltd
BMV:HTHTN
2.8T MXN
30%
6%
11%
7%
US
Booking Holdings Inc
NASDAQ:BKNG
136.7B USD
-204%
18%
52%
57%
US
Airbnb Inc
NASDAQ:ABNB
84.3B USD
74%
20%
18%
111%
US
Marriott International Inc
NASDAQ:MAR
69B USD
-254%
12%
22%
14%
US
Hilton Worldwide Holdings Inc
NYSE:HLT
55.7B USD
-53%
8%
20%
12%
US
Royal Caribbean Cruises Ltd
NYSE:RCL
44.7B USD
53%
7%
15%
11%
CN
Trip.com Group Ltd
HKEX:9961
245.8B HKD
8%
5%
8%
7%
US
Carnival Corp
NYSE:CCL
24.1B USD
14%
2%
7%
6%
UK
Carnival PLC
LSE:CCL
16B GBP
14%
2%
7%
6%
US
Expedia Group Inc
NASDAQ:EXPE
18.8B USD
61%
3%
17%
7%
Country UK
Market Cap 17.5B USD
ROE
-32%
ROA
15%
ROCE
39%
ROIC
23%
Country CN
Market Cap 2.8T MXN
ROE
30%
ROA
6%
ROCE
11%
ROIC
7%
Country US
Market Cap 136.7B USD
ROE
-204%
ROA
18%
ROCE
52%
ROIC
57%
Country US
Market Cap 84.3B USD
ROE
74%
ROA
20%
ROCE
18%
ROIC
111%
Country US
Market Cap 69B USD
ROE
-254%
ROA
12%
ROCE
22%
ROIC
14%
Country US
Market Cap 55.7B USD
ROE
-53%
ROA
8%
ROCE
20%
ROIC
12%
Country US
Market Cap 44.7B USD
ROE
53%
ROA
7%
ROCE
15%
ROIC
11%
Country CN
Market Cap 245.8B HKD
ROE
8%
ROA
5%
ROCE
8%
ROIC
7%
Country US
Market Cap 24.1B USD
ROE
14%
ROA
2%
ROCE
7%
ROIC
6%
Country UK
Market Cap 16B GBP
ROE
14%
ROA
2%
ROCE
7%
ROIC
6%
Country US
Market Cap 18.8B USD
ROE
61%
ROA
3%
ROCE
17%
ROIC
7%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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