Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin23.4%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin14.6%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt6.1 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$3.8B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$51M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
A
Free Cash Flow$821M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income10.2%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$981M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit31.3%
Operating Margin23.4%
Net Margin14.6%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
31.3%▲
29.6%▼
30.7%▲
27.7%•
N/A
Operating Margin %
23.4%▲
21.1%▼
22.4%▲
17.7%•
N/A
Net Income %
14.6%▲
12.8%▼
16.2%▲
9.6%•
N/A
Diluted EPS
4.87•
N/A•
4.41▲
2.06▲
1.45
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$5.3B
$4.7B
$4.8B
$4.2B
N/A
Total Debt
$4.6B▲
$3.7B▲
$3.6B▲
$2.8B•
N/A
Working Capital
-$51M▲
-$59M▲
-$61M▼
$134M•
N/A
Years to Pay Debt
6.08
5.87
4.79
7.53
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$821M▲
$646M▼
$811M▲
$547M•
N/A
Owner Earnings
$981M
$851M
$982M
$628M
N/A
CapEx % of Net Income
10.2%
12.4%
10.9%
26.4%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
-9,092
-4,198
-771
2,432
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
1,446,000
1,217,000
1,254,000
807,000
Total Unusual Items
-31,000
-14,000
-3,000
8,000
Total Unusual Items Excluding Goodwill
-31,000
-14,000
-3,000
8,000
Net Income From Continuing Operation Net Minority Interest
758,000
628,000
750,000
375,000
Reconciled Depreciation
146,000
145,000
150,000
154,000
Reconciled Cost Of Revenue
3,567,000
3,468,000
3,206,000
2,813,000
EBITDA
1,415,000
1,245,000
1,251,000
815,000
EBIT
1,269,000
1,100,000
1,101,000
661,000
Net Interest Income
-153,000
-140,000
-52,000
-106,000
Interest Expense
195,000
203,000
91,000
121,000
Interest Income
49,000
63,000
39,000
22,000
Normalized Income
779,908
637,802
752,229
369,432
Net Income From Continuing And Discontinued Operation
758,000
628,000
750,000
375,000
Total Expenses
3,974,000
3,882,000
3,590,000
3,205,000
Total Operating Income As Reported
1,198,000
1,041,000
1,066,000
628,000
Diluted Average Shares
155,800
170,000
182,000
184,000
Basic Average Shares
154,400
161,200
169,000
181,000
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
758,000
628,000
750,000
375,000
Net Income Common Stockholders
758,000
628,000
750,000
375,000
Net Income
758,000
628,000
750,000
375,000
Minority Interests
-1,000
0
0
-1,000
Net Income Including Noncontrolling Interests
759,000
628,000
750,000
376,000
Net Income Continuous Operations
759,000
628,000
750,000
376,000
Tax Provision
315,000
269,000
260,000
164,000
Pretax Income
1,074,000
897,000
1,010,000
540,000
Special Income Charges
-31,000
-14,000
-3,000
8,000
Write Off
23,000
10,000
-1,000
-7,000
Impairment Of Capital Assets
-3,000
0
7,000
0
Restructuring And Mergern Acquisition
8,000
4,000
4,000
-8,000
Net Non Operating Interest Income Expense
-153,000
-115,000
-87,000
-106,000
Total Other Finance Cost
7,000
11,000
7,000
8,000
Interest Expense Non Operating
195,000
161,000
115,000
121,000
Interest Income Non Operating
49,000
63,000
39,000
22,000
Operating Income
1,215,000
1,041,000
1,034,000
687,000
Operating Expense
407,000
414,000
384,000
392,000
Depreciation And Amortization In Income Statement
67,000
65,000
67,000
68,000
Depreciation Income Statement
67,000
65,000
67,000
68,000
Selling General And Administration
354,000
359,000
338,000
353,000
General And Administrative Expense
354,000
359,000
338,000
353,000
Gross Profit
1,622,000
1,455,000
1,418,000
1,079,000
Cost Of Revenue
3,567,000
3,468,000
3,206,000
2,813,000
Total Revenue
5,189,000
4,923,000
4,624,000
3,892,000
Operating Revenue
5,189,000
4,923,000
4,624,000
3,892,000
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
6,521
7,403
7,822
7,507
Ordinary Shares Number
150,606
157,655
164,435
175,606
Share Issued
157,127
164,712
172,257
183,112
Net Debt
3,099,000
2,266,000
1,900,000
1,467,000
Total Debt
4,607,000
3,688,000
3,592,000
2,823,000
Tangible Book Value
-3,896,000
-3,354,000
-3,049,000
-2,759,000
Invested Capital
1,460,000
962,000
1,216,000
781,000
Working Capital
-51,000
-59,000
-61,000
134,000
Net Tangible Assets
-3,896,000
-3,354,000
-3,049,000
-2,759,000
Capital Lease Obligations
406,000
414,000
426,000
427,000
Common Stock Equity
-2,741,000
-2,312,000
-1,950,000
-1,615,000
Total Capitalization
982,000
564,000
617,000
726,000
Total Equity Gross Minority Interest
-2,736,000
-2,308,000
-1,946,000
-1,608,000
Minority Interest
5,000
4,000
4,000
7,000
Stockholders Equity
-2,741,000
-2,312,000
-1,950,000
-1,615,000
Treasury Stock
59,000
35,000
37,000
22,000
Retained Earnings
-302,000
34,000
396,000
607,000
Additional Paid In Capital
19,000
16,000
14,000
10,000
Capital Stock
145,000
137,000
141,000
137,000
Common Stock
145,000
137,000
141,000
137,000
Total Liabilities Net Minority Interest
8,081,000
7,056,000
6,759,000
5,824,000
Total Non Current Liabilities Net Minority Interest
5,981,000
5,128,000
4,569,000
4,280,000
Other Non Current Liabilities
345,000
311,000
275,000
251,000
Derivative Product Liabilities
12,000
78,000
0
11,000
Non Current Pension And Other Postretirement Benefit Plans
69,000
68,000
66,000
66,000
Tradeand Other Payables Non Current
75,000
78,000
75,000
69,000
Non Current Deferred Revenue
1,340,000
1,294,000
1,096,000
1,043,000
Non Current Deferred Taxes Liabilities
17,000
18,000
68,000
78,000
Long Term Debt And Capital Lease Obligation
4,101,000
3,264,000
2,963,000
2,742,000
Long Term Capital Lease Obligation
378,000
388,000
396,000
401,000
Long Term Debt
3,723,000
2,876,000
2,567,000
2,341,000
Long Term Provisions
22,000
17,000
26,000
20,000
Current Liabilities
2,100,000
1,928,000
2,190,000
1,544,000
Other Current Liabilities
54,000
14,000
25,000
9,000
Current Debt And Capital Lease Obligation
506,000
424,000
629,000
81,000
Current Capital Lease Obligation
28,000
26,000
30,000
26,000
Current Debt
478,000
398,000
599,000
55,000
Current Provisions
21,000
22,000
10,000
44,000
Payables
326,000
340,000
360,000
394,000
Other Payable
114,000
116,000
135,000
173,000
Total Tax Payable
109,000
52,000
98,000
69,000
Accounts Payable
103,000
111,000
127,000
152,000
Total Assets
5,345,000
4,748,000
4,813,000
4,216,000
Total Non Current Assets
3,296,000
2,879,000
2,684,000
2,538,000
Other Non Current Assets
3,000
Defined Pension Benefit
3,000
3,000
3,000
2,000
Non Current Deferred Assets
419,000
376,000
332,000
291,000
Non Current Deferred Taxes Assets
146,000
122,000
134,000
126,000
Financial Assets
120,000
4,000
20,000
7,000
Investmentin Financial Assets
211,000
212,000
185,000
156,000
Available For Sale Securities
211,000
212,000
185,000
156,000
Long Term Equity Investment
55,000
51,000
48,000
36,000
Investmentsin Joint Venturesat Cost
16,000
5,000
2,000
Investmentsin Associatesat Cost
39,000
46,000
46,000
36,000
Investment Properties
2,000
3,000
3,000
0
Goodwill And Other Intangible Assets
1,155,000
1,042,000
1,099,000
1,144,000
Other Intangible Assets
820,000
763,000
809,000
854,000
Goodwill
335,000
336,000
335,000
341,000
Net PPE
415,000
422,000
423,000
434,000
Accumulated Depreciation
-536,000
-525,000
-543,000
-603,000
Gross PPE
951,000
422,000
948,000
977,000
Other Properties
4,000
422,000
3,000
2,000
Machinery Furniture Equipment
293,000
300,000
292,000
299,000
Buildings And Improvements
555,000
534,000
571,000
607,000
Land And Improvements
99,000
99,000
111,000
112,000
Current Assets
2,049,000
1,869,000
2,129,000
1,678,000
Current Deferred Assets
5,000
5,000
5,000
5,000
Restricted Cash
27,000
22,000
56,000
47,000
Prepaid Assets
86,000
92,000
104,000
73,000
Inventory
5,000
4,000
5,000
4,000
Other Receivables
101,000
84,000
108,000
80,000
Taxes Receivable
27,000
22,000
15,000
16,000
Accounts Receivable
698,000
651,000
580,000
493,000
Allowance For Doubtful Accounts Receivable
-150,000
-120,000
-106,000
-117,000
Gross Accounts Receivable
848,000
771,000
686,000
610,000
Cash Cash Equivalents And Short Term Investments
1,105,000
993,000
1,273,000
929,000
Other Short Term Investments
3,000
7,000
7,000
2,000
Cash And Cash Equivalents
1,102,000
986,000
1,266,000
929,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
821,000
646,000
811,000
547,000
Repurchase Of Capital Stock
-897,000
-804,000
-790,000
-482,000
Repayment Of Debt
-478,000
-547,000
0
-209,000
Issuance Of Debt
1,065,000
834,000
657,000
0
Issuance Of Capital Stock
-10,000
-27,000
-8,000
-1,000
Capital Expenditure
-77,000
-78,000
-82,000
-99,000
End Cash Position
1,126,000
991,000
1,278,000
921,000
Beginning Cash Position
991,000
1,278,000
921,000
1,391,000
Effect Of Exchange Rate Changes
41,000
-18,000
18,000
-77,000
Changes In Cash
94,000
-269,000
339,000
-393,000
Financing Cash Flow
-614,000
-894,000
-417,000
-961,000
Net Other Financing Charges
6,000
-45,000
Common Stock Dividend Paid
-259,000
-245,000
-233,000
0
Net Common Stock Issuance
-907,000
-831,000
-798,000
-483,000
Common Stock Payments
-897,000
-804,000
-790,000
-482,000
Common Stock Issuance
-10,000
-27,000
-8,000
-1,000
Net Issuance Payments Of Debt
587,000
287,000
657,000
-209,000
Net Short Term Debt Issuance
0
0
-828,000
Short Term Debt Payments
0
0
-828,000
Net Long Term Debt Issuance
587,000
287,000
657,000
-209,000
Long Term Debt Payments
-478,000
-547,000
0
-209,000
Long Term Debt Issuance
1,065,000
834,000
657,000
0
Investing Cash Flow
-190,000
-99,000
-137,000
-78,000
Net Other Investing Changes
7,000
7,000
6,000
Net Investment Purchase And Sale
-109,000
-21,000
-52,000
13,000
Sale Of Investment
14,000
11,000
8,000
13,000
Purchase Of Investment
-123,000
-32,000
-60,000
0
Net Business Purchase And Sale
-11,000
-16,000
-3,000
-1,000
Purchase Of Business
-11,000
-16,000
-3,000
-1,000
Net Intangibles Purchase And Sale
-49,000
-49,000
-54,000
-45,000
Purchase Of Intangibles
-49,000
-49,000
-54,000
-45,000
Net PPE Purchase And Sale
-28,000
-20,000
-28,000
-51,000
Sale Of PPE
0
9,000
0
3,000
Purchase Of PPE
-28,000
-29,000
-28,000
-54,000
Operating Cash Flow
898,000
724,000
893,000
646,000
Taxes Refund Paid
-307,000
-309,000
-243,000
-211,000
Interest Received Cfo
46,000
57,000
36,000
22,000
Interest Paid Cfo
-202,000
-170,000
-119,000
-126,000
Change In Working Capital
36,000
56,000
79,000
101,000
Change In Other Current Assets
112,000
56,000
118,000
112,000
Change In Payable
-25,000
-45,000
31,000
121,000
Change In Inventory
0
0
1,000
Change In Receivables
-51,000
-106,000
-70,000
-132,000
Other Non Cash Items
234,000
174,000
100,000
220,000
Stock Based Compensation
72,000
67,000
56,000
46,000
Deferred Tax
315,000
269,000
260,000
164,000
Depreciation And Amortization
146,000
145,000
150,000
154,000
Amortization Cash Flow
98,000
102,000
Depreciation
146,000
145,000
150,000
154,000
Net Foreign Currency Exchange Gain Loss
-37,000
25,000
-35,000
-10,000
Net Income From Continuing Operations
759,000
628,000
750,000
376,000
3/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
Negative book value — Graham's formula requires positive equity (BVPS). Common in companies with heavy buybacks (MCD, AAPL). Not a flaw in the business, but the formula cannot produce a fair value.
Margin of Safety
—
Market Cap / Net Assets
⚠ Negative Net Assets
Net Assets: -$2.7B
⚠ Negative Net Assets — total liabilities exceed total assets on paper. This is common in companies that aggressively return capital via buybacks and dividends (Apple, McDonald's, Domino's). It does not indicate insolvency if the business generates strong, consistent free cash flow. Focus on FCF and earnings power rather than balance sheet book value for these companies.
Warren's Owner Earnings
$981M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$5.2B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
0.98x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $1.45 to $4.87 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+236.4% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $5.2Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 0.98xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $1.45 to $4.87 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what IHG is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
29.6%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
10.2%
12.4%
10.9%
26.4%
N/A
Repurchase of Capital Stock
-$897M
-$804M
-$790M
-$482M
N/A
Free Cash Flow
$821M▲
$646M▼
$811M▲
$547M•
N/A•
Warren's Owner Earnings
$981M
$851M
$982M
$628M
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare IHG against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
IHG (IHG) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 31.3%. Operating margin: 23.4%. Net margin: 14.6%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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