-0.05 | -0.17%
INTERCONTINENTAL HOTELS GRP's gross profit margin for the fourth quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. INTERCONTINENTAL HOTELS GRP has weak liquidity. Currently, the Quick Ratio is 0.76 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 43.69% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Net Sales ($mil) | 484.0 | 451.0 |
| EBITDA ($mil) | 184.0 | 158.0 |
| EBIT ($mil) | 159.0 | 135.0 |
| Net Income ($mil) | 95.0 | 139.0 |
| Balance Sheet | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 201.0 | 182.0 |
| Total Assets ($mil) | 3263.0 | 2968.0 |
| Total Debt ($mil) | 1258.0 | 691.0 |
| Equity ($mil) | 308.0 | 547.0 |
| Profitability | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Gross Profit Margin | 57.23 | 54.55 |
| EBITDA Margin | 38.01 | 35.03 |
| Operating Margin | 32.85 | 29.93 |
| Sales Turnover | 0.56 | 0.6 |
| Return on Assets | 16.67 | 15.93 |
| Return on Equity | 176.62 | 86.47 |
| Debt | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Current Ratio | 0.85 | 0.67 |
| Debt/Capital | 0.8 | 0.56 |
| Interest Expense | 17.0 | 15.0 |
| Interest Coverage | 9.35 | 9.0 |
| Share Data | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Shares outstanding (mil) | 268.0 | 270.67 |
| Div / share | 1.72 | 0.0 |
| EPS | 0.33 | 0.49 |
| Book value / share | 1.15 | 2.02 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 181737.0 | 330679.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 29.81 for the Hotels, Restaurants & Leisure industry and a discount compared to the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 25.73 indicates a significant premium versus the S&P 500 average of 2.44 and a significant premium versus the industry average of 7.92. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| IHG 15.02 | Peers 29.81 | IHG 16.79 | Peers 13.90 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. IHG is trading at a significant discount to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. IHG is trading at a premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| IHG 18.25 | Peers 22.31 | IHG NM | Peers 1.62 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. IHG is trading at a discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. IHG's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| IHG 25.73 | Peers 7.92 | IHG 14.16 | Peers 62.38 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. IHG is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, IHG is expected to significantly trail its peers on the basis of its earnings growth rate. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| IHG 4.32 | Peers 2.82 | IHG 3.78 | Peers 7.25 | |||||||||||||||||||||
|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. IHG is trading at a significant premium to its industry. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. IHG significantly trails its peers on the basis of sales growth |
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