BOOKING HOLDINGS INC (1BKNG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1BKNG - US09857L1089 - Common Stock
4608 EUR
0 (0%)
Taking everything into account, 1BKNG scores 6 out of 10 in our fundamental rating. 1BKNG was compared to 62 industry peers in the Hotels, Restaurants & Leisure industry. 1BKNG gets an excellent profitability rating and is at the same time showing great financial health properties. 1BKNG is growing strongly while it is still valued neutral. This is a good combination! These ratings would make 1BKNG suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- 1BKNG had positive earnings in the past year.
- 1BKNG had a positive operating cash flow in the past year.
- In the past 5 years 1BKNG has always been profitable.
- Each year in the past 5 years 1BKNG had a positive operating cash flow.
1.2 Ratios
- 1BKNG has a Return On Assets of 17.54%. This is amongst the best in the industry. 1BKNG outperforms 98.28% of its industry peers.
- 1BKNG's Return On Invested Capital of 58.48% is amongst the best of the industry. 1BKNG outperforms 100.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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 has a Profit Margin of 19.37%. This is amongst the best in the industry. 1BKNG outperforms 87.93% of its industry peers.
- In the last couple of years the Profit Margin of 1BKNG has declined.
- The Operating Margin of 1BKNG (35.29%) is better than 96.55% of its industry peers.
- In the last couple of years the Operating Margin of 1BKNG has remained more or less at the same level.
| 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.
- 1BKNG has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1BKNG has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 7.21 indicates that 1BKNG is not in any danger for 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.
- 1BKNG has a debt to FCF ratio of 2.04. This is a good value and a sign of high solvency as 1BKNG would need 2.04 years to pay back of all of its debts.
- 1BKNG's Debt to FCF ratio of 2.04 is amongst the best of the industry. 1BKNG outperforms 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.
- 1BKNG's Current ratio of 1.33 is amongst the best of the industry. 1BKNG outperforms 81.03% of its industry peers.
- 1BKNG has a Quick 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.
- The Quick ratio of 1BKNG (1.33) is better than 81.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
- 1BKNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.18%, which is quite impressive.
- Measured over the past years, 1BKNG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.66% on average per year.
- Looking at the last year, 1BKNG shows a quite strong growth in Revenue. The Revenue has grown by 12.96% in the last year.
- 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
- The Earnings Per Share is expected to grow by 17.61% on average over the next years. This is quite good.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- The Price/Earnings ratio is 24.25, which indicates a rather expensive current valuation of 1BKNG.
- 63.79% of the companies in the same industry are more expensive than 1BKNG, based on the Price/Earnings ratio.
- 1BKNG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- 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
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1BKNG.
- 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.
- The decent profitability rating of 1BKNG 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
- 1BKNG has a yearly dividend return of 0.71%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.36, 1BKNG has a dividend in line with its industry peers.
- With a Dividend Yield of 0.71, 1BKNG pays less dividend than the S&P500 average, which is at 1.81.
| 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
- 24.39% of the earnings are spent on dividend by 1BKNG. This is a low number and 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.