InterContinental Story

InterContinental Hotels Group PLC -- USA Stock  

USD 66.17  0.51  0.78%

Macroaxis News
  
By David Taylor

InterContinental Hotels Group (IHG) is a multi-national, British hotel group.  They are an American Depositary that operates over 5,000 different hotels in over 100 countries.  They have some marque brands, including InterContinental, Crowne Plaza, Holiday Inn and others.  They also have strong earnings and are likely to continue to grow these earnings over the coming years with the current economic expansion.  

 

Restaurants Hotels Motels
Fama & French Classification
InterContinental Hotel Group offers a place for your portfolio to stay for a while.

InterContinental Hotels is lagging significantly behind the stock market despite tremendous increases in revenue and earnings.  The hotelier has done well in recent years and has improved its debt situation compared to revenue and profit, as well cut costs significantly improving earnings-per-share.  




InterContinental Hotels Group (IHG) is a multi-national, British hotel group.  They are an American Depositary that operates over 5,000 different hotels in over 100 countries.  They have some marque brands, including InterContinental, Crowne Plaza, Holiday Inn and others.  They also have strong earnings and are likely to continue to grow these earnings over the coming years with the current economic expansion.  

Here are their earnings-per-share for the given years:

2011:   $1.75

2012:   $1.90  

2013:   $1.41  

2014:   $1.59  

2015:   $5.20

Outside of the drop in 2013 the company has increased its earnings throughout the years.  Plus, the year 2015 was a stellar year of earnings with cost savings more than doubling their operating income.  In the two years from 2014 to 2015 the gross operating profit was nearly identical at $1.117 billion and $1.163 billion respectively, but the net incomes were significantly different at $391 and $1,222.  There were significant costs just that the company employed to improve their bottom line.

But, despite such a strong showing in their earnings, the company’s stock has been lagging behind the industry and the market in general.  If you were to see a chart on the stock you would see the it is about to break much higher.  But, technical trading aside, there are other aspects of the company that make this such a compelling potential investment.  

First, given the recent moves in the stock markets around the world, it is obvious that the world economies are expanding.  With a greater expanding economy, that equates to more business and leisure travel, which, of course, means more revenue to hoteliers.  The company has already demonstrated that they are improving their overall bottom line.  

One of the most compelling aspects of this stock is that the company’s stock is trading at less than 10 - times earnings.  With their earnings for the year in 2015 at $5.20 and the company’s stock trading at $43.70, that is well below the threshold where I look for stocks.  And, with the fundamentals of the company improving along with the economy, there is a very strong case for the stock to, at the very, very least hit 10-times earnings.  The overall stock market is trading at approximately 16-times earnings right now.  This puts the stock in a position to gain a decent 60% rise just to catch up with the average of the stock market.  

And, the financial statements have improved in certain areas, offering a brighter outlook.  The debt-to-assets ratio has improved significantly.  Whereas in 2014 the ratio was 11:6, the debt-to-assets ratio is now sitting at 11:16.  That is healthy and noteworthy.  

Overall, IHG has taken significant steps to improve its overall outlook.  The debt-to-assets and revenue ratios have improved noticeably.  Their profits have made extremely large gains.  And, yet, despite a robust improvement in these financial areas, the stock has lagged behind significantly.  

Sometimes Mr. Market offers something that at first glance you have to dig fairly deep in order to figure out if there is something unseen making an investment in the company a bad choice.  But, given the economic horizon the world is in right now, you have to wonder why this stock is being left behind like it is.  There is an easy 60% increase available just if the stock catches up to the rest of the market.  And, with the earnings that are being printed by the company, there are plenty of reasons to put IHG into your portfolio for a longterm position.

Story Momentum

This article from Macroaxis published on 23 of December contributed to the next trading period price escalation.The trading delta at closing time to the next next day price was 0.18% . The trading delta at closing time when the story was published to current price is 52.2% .

Similar stores for InterContinental

3 days ago at http://weeklyhub.com 
Will InterContinental Hotels Group PLC Run Out of Steam Soon
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Wsj.com with their article InterContinental Hotels Group PLC ADR published on February 11, 2011, Fool.com published Hotel Stocks to Watch InterContinental Hotels Group PLC and Homeinns Hotel Group on November 16, 2015. InterContinental Hotels Group PLC on Focus After Trading At 52-Week Highs - BZ Weekly InterContinental Hotels Group PLC Sets 52-Week High Strong Momentum for ... - Frisco Fastball
over two months ago at http://www.mmahotstuff.com 
InterContinental Hotels Group PLC Forms 54.77 Double Top ...
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InterContinental Hotels Group PLC formed double top with 57.51 target or 5.00 percent above today 54.77 share price.
over three months ago at http://huronreport.com 
InterContinental Hotels Group PLC At 56.62 Forms Top, Diebold ...
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InterContinental Hotels Group PLC formed multiple top with 58.32 target or 3.00 percent above today 56.62 share price.

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Shares Outstanding Comparative Analysis
  Shares Outstanding 
      InterContinental Comparables 
InterContinental is currently under evaluation in shares outstanding category among related companies. Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted bases which include exotic instruments such as options, or convertibles bonds.