BOOKING HOLDINGS INC (1BKNG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1BKNG - US09857L1089 - Common Stock
4608 EUR
0 (0%)
Overall 1BKNG gets a fundamental rating of 6 out of 10. We evaluated 1BKNG against 62 industry peers in the Hotels, Restaurants & Leisure industry. Both the health and profitability get an excellent rating, making 1BKNG a very profitable company, without any liquidiy or solvency issues. 1BKNG is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make 1BKNG a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- 1BKNG had positive earnings in the past year.
- In the past year 1BKNG had a positive cash flow from operations.
- 1BKNG had positive earnings in each of the past 5 years.
- Each year in the past 5 years 1BKNG had a positive operating cash flow.
1.2 Ratios
- 1BKNG has a better Return On Assets (17.54%) than 98.28% of its industry peers.
- 1BKNG has a Return On Invested Capital of 58.48%. This is amongst the best in the industry. 1BKNG outperforms 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1BKNG is significantly above the industry average of 12.01%.
- The last Return On Invested Capital (58.48%) for 1BKNG is above the 3 year average (39.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.54% | ||
| ROE | N/A | ||
| ROIC | 58.48% |
ROA(3y)16.97%
ROA(5y)11.22%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)39.14%
ROIC(5y)26.17%
1.3 Margins
- 1BKNG's Profit Margin of 19.37% is amongst the best of the industry. 1BKNG outperforms 87.93% of its industry peers.
- 1BKNG's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 35.29%, 1BKNG belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
- 1BKNG's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.29% | ||
| PM (TTM) | 19.37% | ||
| GM | N/A |
OM growth 3Y13.4%
OM growth 5Y-1.21%
PM growth 3Y32.58%
PM growth 5Y-5.16%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1BKNG is creating value.
- 1BKNG has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1BKNG has less shares outstanding
- 1BKNG has a worse debt/assets ratio than last year.
2.2 Solvency
- 1BKNG has an Altman-Z score of 7.21. This indicates that 1BKNG is financially healthy and has little risk of bankruptcy at the moment.
- 1BKNG's Altman-Z score of 7.21 is amongst the best of the industry. 1BKNG outperforms 94.83% of its industry peers.
- The Debt to FCF ratio of 1BKNG is 2.04, which is a good value as it means it would take 1BKNG, 2.04 years of fcf income to pay off all of its debts.
- 1BKNG has a better Debt to FCF ratio (2.04) than 81.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.04 | ||
| Altman-Z | 7.21 |
ROIC/WACC6.92
WACC8.45%
2.3 Liquidity
- 1BKNG has a Current Ratio of 1.33. This is a normal value and indicates that 1BKNG is financially healthy and should not expect problems in meeting its short term obligations.
- With an excellent Current ratio value of 1.33, 1BKNG belongs to the best of the industry, outperforming 81.03% of the companies in the same industry.
- A Quick Ratio of 1.33 indicates that 1BKNG should not have too much problems paying its short term obligations.
- 1BKNG's Quick ratio of 1.33 is amongst the best of the industry. 1BKNG outperforms 81.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 24.18% over the past year.
- 1BKNG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.66% yearly.
- The Revenue has grown by 12.96% in the past year. This is quite good.
- The Revenue has been growing by 9.52% on average over the past years. This is quite good.
EPS 1Y (TTM)24.18%
EPS 3Y60.13%
EPS 5Y12.66%
EPS Q2Q%18.61%
Revenue 1Y (TTM)12.96%
Revenue growth 3Y29.39%
Revenue growth 5Y9.52%
Sales Q2Q%12.68%
3.2 Future
- Based on estimates for the next years, 1BKNG will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.61% on average per year.
- Based on estimates for the next years, 1BKNG will show a quite strong growth in Revenue. The Revenue will grow by 9.39% on average per year.
EPS Next Y21.8%
EPS Next 2Y20.18%
EPS Next 3Y18.73%
EPS Next 5Y17.61%
Revenue Next Year13.74%
Revenue Next 2Y11.34%
Revenue Next 3Y10.4%
Revenue Next 5Y9.39%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 24.25, the valuation of 1BKNG can be described as rather expensive.
- 1BKNG's Price/Earnings ratio is a bit cheaper when compared to the industry. 1BKNG is cheaper than 63.79% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, 1BKNG is valued at the same level.
- With a Price/Forward Earnings ratio of 19.78, 1BKNG is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, 1BKNG is valued a bit cheaper than the industry average as 62.07% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1BKNG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.25 | ||
| Fwd PE | 19.78 |
4.2 Price Multiples
- 1BKNG's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1BKNG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.79 | ||
| EV/EBITDA | 17.66 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 1BKNG has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as 1BKNG's earnings are expected to grow with 18.73% in the coming years.
PEG (NY)1.11
PEG (5Y)1.91
EPS Next 2Y20.18%
EPS Next 3Y18.73%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.71%, 1BKNG is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.36, 1BKNG has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 1BKNG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1BKNG pays out 24.39% of its income as dividend. This is a sustainable payout ratio.
DP24.39%
EPS Next 2Y20.18%
EPS Next 3Y18.73%
BOOKING HOLDINGS INC / 1BKNG.MI FAQ
What is the ChartMill fundamental rating of BOOKING HOLDINGS INC (1BKNG.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1BKNG.MI.
What is the valuation status for 1BKNG stock?
ChartMill assigns a valuation rating of 4 / 10 to BOOKING HOLDINGS INC (1BKNG.MI). This can be considered as Fairly Valued.
How profitable is BOOKING HOLDINGS INC (1BKNG.MI) stock?
BOOKING HOLDINGS INC (1BKNG.MI) has a profitability rating of 7 / 10.
Can you provide the financial health for 1BKNG stock?
The financial health rating of BOOKING HOLDINGS INC (1BKNG.MI) is 7 / 10.
What is the earnings growth outlook for BOOKING HOLDINGS INC?
The Earnings per Share (EPS) of BOOKING HOLDINGS INC (1BKNG.MI) is expected to grow by 21.8% in the next year.