ABNB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. Both the health and profitability get an excellent rating, making ABNB a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, ABNB is valued expensive at the moment. This makes ABNB very considerable for quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ABNB was profitable.
ABNB had a positive operating cash flow in the past year.
In multiple years ABNB reported negative net income over the last 5 years.
ABNB had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

ABNB has a Return On Assets of 11.41%. This is amongst the best in the industry. ABNB outperforms 85.61% of its industry peers.
The Return On Equity of ABNB (30.56%) is better than 83.33% of its industry peers.
ABNB has a better Return On Invested Capital (23.83%) than 94.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABNB is significantly above the industry average of 10.36%.
The 3 year average ROIC (16.24%) for ABNB is below the current ROIC(23.83%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	11.41%
ROE	30.56%
ROIC	23.83%

ROA(3y)15.88%

ROA(5y)0.28%

ROE(3y)41.41%

ROE(5y)-8.23%

ROIC(3y)16.24%

ROIC(5y)N/A

1.3 Margins

ABNB has a Profit Margin of 22.03%. This is amongst the best in the industry. ABNB outperforms 93.18% of its industry peers.
The Operating Margin of ABNB (22.65%) is better than 84.85% of its industry peers.
ABNB's Operating Margin has improved in the last couple of years.
ABNB's Gross Margin of 72.23% is amongst the best of the industry. ABNB outperforms 88.64% of its industry peers.
ABNB's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	22.65%
PM (TTM)	22.03%
GM	72.23%

OM growth 3Y36.15%

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y2.43%

GM growth 5Y4.23%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ABNB is creating value.
ABNB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABNB has more shares outstanding
The debt/assets ratio for ABNB has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 4.23 indicates that ABNB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.23, ABNB belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
ABNB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0.44
Altman-Z	4.23

ROIC/WACC2.75

WACC8.67%

2.3 Liquidity

A Current Ratio of 1.39 indicates that ABNB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.39, ABNB is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that ABNB should not have too much problems paying its short term obligations.
ABNB has a better Quick ratio (1.39) than 71.21% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.39
Quick Ratio	1.39

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

ABNB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.96%.
ABNB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 289.30% yearly.
The Revenue has grown by 10.18% in the past year. This is quite good.
Measured over the past years, ABNB shows a quite strong growth in Revenue. The Revenue has been growing by 18.23% on average per year.

EPS 1Y (TTM)0.96%

EPS 3Y289.3%

EPS 5YN/A

EPS Q2Q%3.76%

Revenue 1Y (TTM)10.18%

Revenue growth 3Y22.82%

Revenue growth 5Y18.23%

Sales Q2Q%9.73%

3.2 Future

ABNB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.58% yearly.
The Revenue is expected to grow by 10.07% on average over the next years. This is quite good.

EPS Next Y2.38%

EPS Next 2Y9.12%

EPS Next 3Y12.12%

EPS Next 5Y15.58%

Revenue Next Year10.23%

Revenue Next 2Y10.13%

Revenue Next 3Y9.94%

Revenue Next 5Y10.07%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 31.76, which means the current valuation is very expensive for ABNB.
The rest of the industry has a similar Price/Earnings ratio as ABNB.
When comparing the Price/Earnings ratio of ABNB to the average of the S&P500 Index (27.25), we can say ABNB is valued inline with the index average.
ABNB is valuated quite expensively with a Price/Forward Earnings ratio of 27.13.
ABNB's Price/Forward Earnings is on the same level as the industry average.
ABNB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	31.76
Fwd PE	27.13

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ABNB is valued a bit more expensive than 73.48% of the companies in the same industry.
78.03% of the companies in the same industry are more expensive than ABNB, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	17.64
EV/EBITDA	23.93

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABNB does not grow enough to justify the current Price/Earnings ratio.
ABNB has an outstanding profitability rating, which may justify a higher PE ratio.
ABNB's earnings are expected to grow with 12.12% in the coming years. This may justify a more expensive valuation.