# International Consolidated Airlines Group, S.A. (IAG.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Airlines. Price 426p, market value 18.6 billionp.

## Valuation
- **P/E (trailing): 7.7×** (5-yr avg 870.5×, 3-yr avg 484.3×). International Consolidated Airlines Group, S.A. trades at 7.7× trailing earnings, well below its own five-year average of 870.5×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 6.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.25**. A PEG of 0.25 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.5×**. Each dollar of revenue is priced at 0.5×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.5×**. The shares trade at 2.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.3×**. Enterprise value is 3.3× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 14.3%** (5-yr avg 0.1%). Free cash flow equals 14.3% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 12.9%**. The inverse of the P/E: 12.9% of the price is earned each year.

## Profitability
- **Gross margin: 22.1%**. International Consolidated Airlines Group, S.A. keeps 22.1% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 15.8%**. 15.8% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 10.1%**. 10.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 43.2%**. 43.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 36.9%**. Return on all capital, debt included, is 36.9%: comfortably above what that capital costs.
- **Return on assets: 10.4%**. Each dollar of assets produces 10.4% of profit.

## Growth
- **Revenue growth (1 yr): 1.6%** (3-yr 12.2%/yr, 5-yr 33.1%/yr). Revenue grew 1.6% over the last year, against 33.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 25.5%** (3-yr 124.5%/yr). Earnings per share rose 25.5%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 47.6%/yr**. Free cash flow has compounded at 47.6% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.88**. Debt is 1.88 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 0.7×**. It would take 0.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 7.1×**. Operating profit covers interest 7.1× over, a safe margin.
- **Current ratio: 0.70** (quick 0.66). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.54**. A Z-score of 1.54 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.98%** (0p per share, trailing). International Consolidated Airlines Group, S.A. yields 1.98%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 14%** (15% of free cash flow). 14% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 2**. 2 straight years of increases.
- **Shareholder yield: 7.6%**. Dividends plus net buybacks return 7.6% of the market value a year.

## Price and momentum
- **Total return (1 yr): 10.2%** (YTD 3.9%, 3-mo 4.2%). The shares are up 10.2% over twelve months including dividends.
- **From 52-week high: -13.6%** (28.0% above the low). Trading 14% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 1.64** (volatility 36%). Beta of 1.64 against the FTSE All-Share: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=IAG.L · Page: https://foliofundamentals.com/stocks/iag.l

Not investment advice.