# International Consolidated Airlines Group (IAG.MC)

Canonical: https://gigainvestors.com/s/IAG.MC

Analysis as of: 2026-10-16T07:34:34.429Z. Financial observations: FY2010–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 4.89 per share; close as of 2026-10-15.

Estimated value: low EUR 5.04 per share, central EUR 5.47 per share, high EUR 6.05 per share. Buy at or below the central value EUR 5.47 per share. Valuation as of 2026-10-16T07:34:34.429Z; scenarios are not confidence intervals.

Expected annual return: 11.4% at the stated quote. About 11.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; ES 10-year bond 4.0% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 2

- Operating margin variation: 5.09×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.11×

- FY2017: 0.12×

- FY2018: -0.15×

- FY2019: 0.10×

- FY2020: -0.95×

- FY2021: -0.33×

- FY2022: 0.06×

- FY2023: 0.12×

- FY2024: 0.13×

- FY2025: 0.15×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 19.3%

- ROIC, second-lowest year: -40.0%

- Typical minus recent gross margin: 1.4 pp

- Typical gross margin (annual median): 22.8%

- Recent gross margin (lower of latest and 3-year median): 21.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 11.8%

- ROIC including acquisitions, ten-year median: 4.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 28.7%

- FY2017: 29.0%

- FY2018: -40.0%

- FY2019: 13.9%

- FY2020: -54.7%

- FY2021: -17.9%

- FY2022: 10.6%

- FY2023: 25.0%

- FY2024: 24.6%

- FY2025: 27.0%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: -0.27×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR -1.7B

- Net income, five-year total: EUR 6.2B

- Return on incremental invested capital: 16.6%

- Working capital / revenue, annual change: -0.0 pp

- Working capital / revenue, change between three-year averages: -0.4 pp

- Working capital / revenue, final three-year average: 1.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.26×

- FY2022: -3.46×

- FY2023: 0.32×

- FY2024: 0.37×

- FY2025: 0.50×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 28.7% vs 25.0%

- Per-share earnings: 0.87 to 0.54 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 8.7%

- Ordinary dilution, 5-year annual growth: 7.2%

- Market cap gain: EUR 16B

- Cumulative retained earnings: EUR 2.0B

- Diluted shares, 10-year annual growth: 8.7%

- Diluted shares, 5-year annual growth: 7.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -5.9%

- Per-share value change: EUR -0.34

- Per-share value, starting three-year median: EUR 0.87

- Per-share value, ending three-year median: EUR 0.54

- Buybacks concentrated in cheaper years (correlation): 0.36

- Average buyback yield: 2.3%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: EUR 1.3B

- Cumulative net income, 10 years: EUR 7.8B

- ROIC, first three-year median: 28.7%

- ROIC, last three-year median: 25.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 0.87

- FY2017: EUR 0.91

- FY2018: EUR 1.37

- FY2019: EUR 0.83

- FY2020: EUR -1.97

- FY2021: EUR -0.59

- FY2022: EUR 0.09

- FY2023: EUR 0.50

- FY2024: EUR 0.54

- FY2025: EUR 0.66

### accounting: pass

- Sloan accruals: -7.4%

- Receivables to sales index (DSRI): 1.33×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.97×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.50×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.6%

- FY2017: -5.6%

- FY2018: -1.3%

- FY2019: -6.4%

- FY2020: -12.0%

- FY2021: -8.1%

- FY2022: -11.2%

- FY2023: -5.9%

- FY2024: -8.3%

- FY2025: -7.4%

## Holders

## Price story

Price needs cash profits to shrink 1.3% a year for ten years · "British Airways owner IAG warns on profit as fuel prices soar" (finance.yahoo.com, May 2026) · sales +1.6%

Story as of 2026-10-16T10:00:01.410Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.3% a year for ten years

- 2025-11-07: Shares in British Airways’ owner IAG drop 10% after fall in US demand ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/shares-british-airways-owner-iag-093639093.html))

- 2026-05-08: British Airways owner IAG warns on profit as fuel prices soar ([finance.yahoo.com](https://finance.yahoo.com/video/british-airways-owner-iag-warns-142340209.html))

- 2026-07-31: BA parent company IAG’s profits down more than a third after fuel cost hit ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/ba-parent-company-iag-profits-092253691.html))

### Sales · FY2024–2025

sales +1.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: EUR 23B 

- FY2017: EUR 23B 

- FY2018: EUR 24B 

- FY2019: EUR 26B 

- FY2020: EUR 7.8B 

- FY2021: EUR 8.5B 

- FY2022: EUR 23B 

- FY2023: EUR 29B 

- FY2024: EUR 32B 

- FY2025: EUR 33B 

### Gross margin · FY2025

gross margin 21.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 22.8% 

- FY2017: 23.9% 

- FY2018: 24.6% 

- FY2019: 23.5% 

- FY2022: 17.8% 

- FY2023: 22.7% 

- FY2024: 23.6% 

- FY2025: 21.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in airlines; annual sales are EUR 32.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); FY2025: revenue 32623892000; grossProfit 6978977000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); IAG.MC: International Consolidated Airlines Group S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the North Atlantic, Latin America, the Caribbean, Europe, Africa, the Middle East, South Asia, the Asia Pacific, and internationally. It operates through British Airways, Iberia, Vueling, Aer Lingus, and IAG Loyalty segments. The company manufactures, repairs, maintains, overhauls, retrofits, repurposes, upgrades aircraft, and aircraft parts and equipment. In addition, it provides airline operations, insurance, aircraft leasing, aircraft maintenance, tour operation, air freight operations, call center, ground handling, trustee, retail, IT, finance, flight procurement, storage, aircraft technical assistance, human resources support, and airport infrastructure development services; and manages airline loyalty reward currency. The company was incorporated in 2009 and is headquartered in Harmondsworth, the United Kingdom.

### Why customers stay

Margins ranged from 21.4% to 23.6% during 2023–25; it earns 19.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); FY2023: grossProfit / revenue = 22.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); FY2024: grossProfit / revenue = 23.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); FY2025: grossProfit / revenue = 21.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); 10-year return on capital observations [[2016,0.2874699665774236],[2017,0.2897265454009613],[2018,-0.39969690280051684],[2019,0.1394351242301975],[2020,-0.5467480958573286],[2021,-0.17911849118491185],[2022,0.1057246856386499],[2023,0.24971895810617187],[2024,0.24568520197979196],[2025,0.2703488976682348]]; median 0.19256016310499474. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 30.8% of cash earnings on expansion; earns 16.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); FY2016: growth capex 0; upkeep 3038000000; owner earnings 166000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); FY2017: growth capex 174824626.4963894; upkeep 1315175373.5036106; owner earnings 1857824626.4963894. Growth capex / owner earnings = 0.09410179195766472.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); FY2018: growth capex 759171071.2121406; upkeep 2042828928.7878594; owner earnings 2096171071.2121406. Growth capex / owner earnings = 0.3621703789534406.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); FY2023: growth capex 1491988739; upkeep 2063000000; owner earnings 861600000. Growth capex / owner earnings = 1.7316489542711235.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); FY2024: growth capex 452000000; upkeep 2364000000; owner earnings 1002800000. Growth capex / owner earnings = 0.4507379337854009.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); FY2025: growth capex 504263733.08102226; upkeep 2876684595.9189777; owner earnings 1635037404.0810223. Growth capex / owner earnings = 0.30841112981414953.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); Incremental return on capital 0.16572569174827467, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); Dividend observations: [[2016,462000000],[2017,533000000],[2018,568766040],[2019,1308000000],[2020,53000000],[2021,0],[2022,0],[2023,0],[2024,149000000],[2025,462645747]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); FY2025: cash repurchases 1243000000 EUR.

### Are managers owners

Insiders own 28.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); IAG.MC SharesStats.PercentInsiders = 28.693 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 1.3% yearly over ten years; actual decline was 7.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.429Z); Ten-year compound average after fade. Initial solved rate -0.0317525843369702. Price 4.888; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.6921296296296297 → FY2025 0.3280928118377638. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-11: EUR 3.39 per share

- 2016-12: EUR 3.40 per share

- 2017-01: EUR 3.68 per share

- 2017-02: EUR 4.16 per share

- 2017-03: EUR 4.11 per share

- 2017-04: EUR 4.41 per share

- 2017-05: EUR 4.60 per share

- 2017-06: EUR 4.61 per share

- 2017-07: EUR 4.28 per share

- 2017-08: EUR 4.41 per share

- 2017-09: EUR 4.47 per share

- 2017-10: EUR 4.81 per share

- 2017-11: EUR 4.61 per share

- 2017-12: EUR 4.80 per share

- 2018-01: EUR 4.85 per share

- 2018-02: EUR 4.61 per share

- 2018-03: EUR 4.65 per share

- 2018-04: EUR 4.75 per share

- 2018-05: EUR 5.15 per share

- 2018-06: EUR 4.99 per share

- 2018-07: EUR 5.27 per share

- 2018-08: EUR 5.13 per share

- 2018-09: EUR 4.91 per share

- 2018-10: EUR 4.52 per share

- 2018-11: EUR 4.68 per share

- 2018-12: EUR 4.59 per share

- 2019-01: EUR 4.90 per share

- 2019-02: EUR 4.61 per share

- 2019-03: EUR 3.93 per share

- 2019-04: EUR 4.18 per share

- 2019-05: EUR 3.38 per share

- 2019-06: EUR 3.52 per share

- 2019-07: EUR 3.09 per share

- 2019-08: EUR 3.09 per share

- 2019-09: EUR 3.54 per share

- 2019-10: EUR 4.08 per share

- 2019-11: EUR 4.31 per share

- 2019-12: EUR 4.79 per share

- 2020-01: EUR 4.48 per share

- 2020-02: EUR 3.65 per share

- 2020-03: EUR 1.62 per share

- 2020-04: EUR 1.69 per share

- 2020-05: EUR 1.68 per share

- 2020-06: EUR 1.62 per share

- 2020-07: EUR 1.23 per share

- 2020-08: EUR 1.49 per share

- 2020-09: EUR 1.03 per share

- 2020-10: EUR 1.07 per share

- 2020-11: EUR 1.73 per share

- 2020-12: EUR 1.79 per share

- 2021-01: EUR 1.61 per share

- 2021-02: EUR 2.23 per share

- 2021-03: EUR 2.34 per share

- 2021-04: EUR 2.32 per share

- 2021-05: EUR 2.38 per share

- 2021-06: EUR 2.02 per share

- 2021-07: EUR 1.97 per share

- 2021-08: EUR 1.86 per share

- 2021-09: EUR 2.08 per share

- 2021-10: EUR 1.93 per share

- 2021-11: EUR 1.50 per share

- 2021-12: EUR 1.70 per share

- 2022-01: EUR 1.88 per share

- 2022-02: EUR 1.78 per share

- 2022-03: EUR 1.68 per share

- 2022-04: EUR 1.72 per share

- 2022-05: EUR 1.51 per share

- 2022-06: EUR 1.25 per share

- 2022-07: EUR 1.41 per share

- 2022-08: EUR 1.25 per share

- 2022-09: EUR 1.08 per share

- 2022-10: EUR 1.41 per share

- 2022-11: EUR 1.56 per share

- 2022-12: EUR 1.39 per share

- 2023-01: EUR 1.91 per share

- 2023-02: EUR 1.77 per share

- 2023-03: EUR 1.72 per share

- 2023-04: EUR 1.73 per share

- 2023-05: EUR 1.80 per share

- 2023-06: EUR 1.89 per share

- 2023-07: EUR 1.99 per share

- 2023-08: EUR 1.89 per share

- 2023-09: EUR 1.71 per share

- 2023-10: EUR 1.65 per share

- 2023-11: EUR 1.78 per share

- 2023-12: EUR 1.78 per share

- 2024-01: EUR 1.74 per share

- 2024-02: EUR 1.73 per share

- 2024-03: EUR 2.07 per share

- 2024-04: EUR 2.05 per share

- 2024-05: EUR 2.01 per share

- 2024-06: EUR 1.92 per share

- 2024-07: EUR 1.97 per share

- 2024-08: EUR 2.17 per share

- 2024-09: EUR 2.47 per share

- 2024-10: EUR 2.50 per share

- 2024-11: EUR 3.13 per share

- 2024-12: EUR 3.63 per share

- 2025-01: EUR 4.04 per share

- 2025-02: EUR 4.26 per share

- 2025-03: EUR 3.12 per share

- 2025-04: EUR 3.07 per share

- 2025-05: EUR 3.88 per share

- 2025-06: EUR 3.99 per share

- 2025-07: EUR 4.40 per share

- 2025-08: EUR 4.41 per share

- 2025-09: EUR 4.43 per share

- 2025-10: EUR 4.76 per share

- 2025-11: EUR 4.53 per share

- 2025-12: EUR 4.75 per share

- 2026-01: EUR 4.82 per share

- 2026-02: EUR 4.83 per share

- 2026-03: EUR 4.02 per share

- 2026-04: EUR 4.31 per share

- 2026-05: EUR 4.96 per share

- 2026-06: EUR 5.54 per share

- 2026-07: EUR 5.05 per share

- 2026-08: EUR 5.01 per share

- 2026-09: EUR 5.12 per share

- 2026-10: EUR 4.90 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 3.50 per share, central EUR 3.62 per share, high EUR 3.77 per share

- FY2017: low EUR 6.28 per share, central EUR 6.75 per share, high EUR 7.38 per share

- FY2018: low EUR 10.93 per share, central EUR 12.06 per share, high EUR 13.56 per share

- FY2019: low EUR 11.78 per share, central EUR 12.99 per share, high EUR 14.61 per share

- FY2020: low EUR 1.80 per share, central EUR 1.82 per share, high EUR 1.86 per share

- FY2025: low EUR 3.63 per share, central EUR 3.92 per share, high EUR 4.31 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations