GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » InterContinental Hotels Group PLC (NYSE:IHG) » Definitions » Profitability Rank

InterContinental Hotels Group (InterContinental Hotels Group) Profitability Rank : 8 (As of Dec. 2023)


View and export this data going back to 2003. Start your Free Trial

What is InterContinental Hotels Group Profitability Rank?

InterContinental Hotels Group has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

InterContinental Hotels Group's Operating Margin % for the quarter that ended in Dec. 2023 was 19.64%. As of today, InterContinental Hotels Group's Piotroski F-Score is 7.


Competitive Comparison of InterContinental Hotels Group's Profitability Rank

For the Lodging subindustry, InterContinental Hotels Group's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


InterContinental Hotels Group's Profitability Rank Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, InterContinental Hotels Group's Profitability Rank distribution charts can be found below:

* The bar in red indicates where InterContinental Hotels Group's Profitability Rank falls into.



InterContinental Hotels Group Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

InterContinental Hotels Group has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

InterContinental Hotels Group's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=471 / 2398
=19.64 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

InterContinental Hotels Group has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

InterContinental Hotels Group PLC operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank


InterContinental Hotels Group Profitability Rank Related Terms

Thank you for viewing the detailed overview of InterContinental Hotels Group's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


InterContinental Hotels Group (InterContinental Hotels Group) Business Description

Traded in Other Exchanges
Address
1 Windsor Dials, Arthur Road, Windsor, Berkshire, GBR, SL4 1RS
InterContinental Hotels Group operates 930,000 rooms across 18 brands addressing the midscale through luxury segments, as of Sept. 30, 2023. Holiday Inn and Holiday Inn Express constitute the largest brand, while Hotel Indigo, Even, Hualuxe, Kimpton, and Voco are newer lifestyle brands experiencing strong demand. The company launched a midscale brand, Avid, in summer 2017 and closed on a 51% stake in Regent Hotels in July 2018. It acquired Six Senses in February 2019 and launched another midscale brand, Garner, in 2023. Managed and franchised represent 99% of total rooms. As of Sept. 30, 2023, the Americas represents 56% of total rooms, with greater China accounting for 18%; Europe, Asia, the Middle East, and Africa make up 26%.