InterContinental Net Income vs. Operating Margin

IHG Stock  USD 127.11  0.72  0.56%   
Taking into consideration InterContinental's profitability measurements, InterContinental Hotels Group may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess InterContinental's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2000-03-31
Previous Quarter
173.5 M
Current Value
173.5 M
Quarterly Volatility
250.1 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, InterContinental's Sales General And Administrative To Revenue is most likely to slightly decrease in the upcoming years. The InterContinental's current Days Of Sales Outstanding is estimated to increase to 79.29, while EV To Sales is projected to decrease to 2.38. At this time, InterContinental's Net Income is most likely to decrease significantly in the upcoming years. The InterContinental's current Income Tax Expense is estimated to increase to about 273 M, while Operating Income is projected to decrease to roughly 674.6 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.480.5201
Significantly Down
Pretty Stable
Operating Profit Margin0.190.2859
Way Down
Slightly volatile
For InterContinental profitability analysis, we use financial ratios and fundamental drivers that measure the ability of InterContinental to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well InterContinental Hotels Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between InterContinental's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of InterContinental Hotels Group over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Hotels, Resorts & Cruise Lines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of InterContinental. If investors know InterContinental will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about InterContinental listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.20)
Dividend Share
1.572
Earnings Share
3.87
Revenue Per Share
3.8904
Quarterly Revenue Growth
0.043
The market value of InterContinental Hotels is measured differently than its book value, which is the value of InterContinental that is recorded on the company's balance sheet. Investors also form their own opinion of InterContinental's value that differs from its market value or its book value, called intrinsic value, which is InterContinental's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because InterContinental's market value can be influenced by many factors that don't directly affect InterContinental's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between InterContinental's value and its price as these two are different measures arrived at by different means. Investors typically determine if InterContinental is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, InterContinental's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

InterContinental Hotels Operating Margin vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining InterContinental's current stock value. Our valuation model uses many indicators to compare InterContinental value to that of its competitors to determine the firm's financial worth.
InterContinental Hotels Group is currently regarded as number one stock in net income category among its peers. It also is currently regarded as number one stock in operating margin category among its peers . The ratio of Net Income to Operating Margin for InterContinental Hotels Group is about  3,330,373,002 . At this time, InterContinental's Net Income is most likely to decrease significantly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value InterContinental by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

InterContinental Operating Margin vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

InterContinental

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
750 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

InterContinental

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.23 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

InterContinental Operating Margin Comparison

InterContinental is currently under evaluation in operating margin category among its peers.

InterContinental Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in InterContinental, profitability is also one of the essential criteria for including it into their portfolios because, without profit, InterContinental will eventually generate negative long term returns. The profitability progress is the general direction of InterContinental's change in net profit over the period of time. It can combine multiple indicators of InterContinental, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-2.5 B-2.6 B
Operating Income1.1 B674.6 M
Income Before TaxB1.1 B
Total Other Income Expense Net-56 M-53.2 M
Net Income Applicable To Common Shares337.5 M404.2 M
Net Income750 M787.5 M
Income Tax Expense260 M273 M
Net Income From Continuing Ops750 M787.5 M
Interest Income39 M45.1 M
Net Interest Income-87 M-91.3 M
Change To Netincome117.3 M123.2 M
Net Income Per Share 4.41  3.12 
Income Quality 1.19  1.08 
Net Income Per E B T 0.74  0.89 

InterContinental Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on InterContinental. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of InterContinental position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the InterContinental's important profitability drivers and their relationship over time.

Use InterContinental in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if InterContinental position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in InterContinental will appreciate offsetting losses from the drop in the long position's value.

InterContinental Pair Trading

InterContinental Hotels Group Pair Trading Analysis

The ability to find closely correlated positions to InterContinental could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace InterContinental when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back InterContinental - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling InterContinental Hotels Group to buy it.
The correlation of InterContinental is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as InterContinental moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if InterContinental Hotels moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for InterContinental can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your InterContinental position

In addition to having InterContinental in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Education Thematic Idea Now

Education
Education Theme
Companies involved in apprenticeship, education, tutoring, schooling, online universities, and other learning services. The Education theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Education Theme or any other thematic opportunities.
View All  Next Launch
When determining whether InterContinental Hotels is a strong investment it is important to analyze InterContinental's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact InterContinental's future performance. For an informed investment choice regarding InterContinental Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project InterContinental's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of InterContinental Hotels at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include InterContinental's income statement, its balance sheet, and the statement of cash flows.
Potential InterContinental investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although InterContinental investors may work on each financial statement separately, they are all related. The changes in InterContinental's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on InterContinental's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.