BOOKING HOLDINGS INC (1BKNG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1BKNG - US09857L1089 - Common Stock
4608 EUR
0 (0%)
We assign a fundamental rating of 6 out of 10 to 1BKNG. 1BKNG was compared to 60 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes 1BKNG very considerable 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.
- Each year in the past 5 years 1BKNG has been profitable.
- In the past 5 years 1BKNG always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 17.54%, 1BKNG belongs to the best of the industry, outperforming 98.28% of the companies in the same industry.
- 1BKNG's Return On Invested Capital of 58.48% is amongst the best of 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 11.82%.
- The 3 year average ROIC (39.14%) for 1BKNG is below the current ROIC(58.48%), indicating increased profibility in the last year.
| 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
- The Profit Margin of 1BKNG (19.37%) is better than 87.93% of its industry peers.
- 1BKNG's Profit Margin has declined in the last couple of years.
- 1BKNG's Operating Margin of 35.29% is amongst the best of the industry. 1BKNG outperforms 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.
- The number of shares outstanding for 1BKNG has been reduced compared to 1 year ago.
- Compared to 5 years ago, 1BKNG has less shares outstanding
- Compared to 1 year ago, 1BKNG has a worse debt to assets ratio.
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.
- With an excellent Altman-Z score value of 7.21, 1BKNG belongs to the best of the industry, outperforming 94.83% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of 1BKNG (2.04) is better 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
- A Current Ratio of 1.33 indicates that 1BKNG should not have too much problems paying its short term obligations.
- 1BKNG has a better Current ratio (1.33) than 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.
- 1BKNG has a Quick ratio of 1.33. This is amongst the best in 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.
- Looking at the last year, 1BKNG shows a quite strong growth in Revenue. The Revenue has grown by 12.96% in the last year.
- Measured over the past years, 1BKNG shows a quite strong growth in Revenue. The Revenue has been growing by 9.52% on average per year.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 24.25 indicates a rather expensive 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 27.30, which is the current average of the S&P500 Index.
- 1BKNG is valuated rather expensively with a Price/Forward Earnings ratio of 19.78.
- 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.
- 1BKNG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.32.
| 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.
- 1BKNG's Price/Free Cash Flow ratio is in line with the industry average.
| 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.
- 1BKNG's earnings are expected to grow with 18.73% in the coming years. This may justify a more expensive valuation.
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 1.29, 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 1.82.
| 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.