Taking everything into account, ABNB scores 6 out of 10 in our fundamental rating. ABNB was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. ABNB gets an excellent profitability rating and is at the same time showing great financial health properties. ABNB is quite expensive at the moment. It does show a decent growth rate. With these ratings, ABNB could be worth investigating further for quality investing!.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

ABNB had positive earnings in the past year.
ABNB had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ABNB reported negative net income in multiple years.
Of the past 5 years ABNB 4 years had a positive operating cash flow.

1.2 Ratios

The Return On Assets of ABNB (11.41%) is better than 85.61% of its industry peers.
The Return On Equity of ABNB (30.56%) is better than 84.09% 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 10.37%.
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

The Profit Margin of ABNB (22.03%) is better than 93.18% of its industry peers.
ABNB has a better Operating Margin (22.65%) than 84.85% of its industry peers.
In the last couple of years the Operating Margin of ABNB has grown nicely.
The Gross Margin of ABNB (72.23%) is better than 88.64% of its industry peers.
In the last couple of years the Gross Margin of ABNB has grown nicely.

		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

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ABNB is creating value.
The number of shares outstanding for ABNB has been reduced compared to 1 year ago.
The number of shares outstanding for ABNB has been increased compared to 5 years ago.
ABNB has a better debt/assets ratio than last year.

2.2 Solvency

ABNB has an Altman-Z score of 4.21. This indicates that ABNB is financially healthy and has little risk of bankruptcy at the moment.
ABNB's Altman-Z score of 4.21 is amongst the best of the industry. ABNB outperforms 86.36% of its industry peers.
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	4.21

ROIC/WACC2.74

WACC8.69%

2.3 Liquidity

ABNB has a Current Ratio of 1.39. This is a normal value and indicates that ABNB is financially healthy and should not expect problems in meeting its short term obligations.
ABNB has a Current ratio of 1.39. This is in the better half of the industry: ABNB outperforms 68.18% of its industry peers.
A Quick Ratio of 1.39 indicates that ABNB should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.39, ABNB is doing good in the industry, outperforming 71.21% of the companies in the same industry.

		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.
Looking at the last year, ABNB shows a quite strong growth in Revenue. The Revenue has grown by 10.18% in the last year.
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

Based on estimates for the next years, ABNB will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.58% on average per year.
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

ABNB is valuated quite expensively with a Price/Earnings ratio of 31.37.
ABNB's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ABNB to the average of the S&P500 Index (28.39), we can say ABNB is valued inline with the index average.
The Price/Forward Earnings ratio is 26.80, which means the current valuation is very expensive for ABNB.
The rest of the industry has a similar Price/Forward Earnings ratio as ABNB.
ABNB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	31.37
Fwd PE	26.8

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ABNB is valued a bit more expensive than the industry average as 74.24% of the companies are valued more cheaply.
ABNB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ABNB is cheaper than 77.27% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	17.42
EV/EBITDA	23.8

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ABNB has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ABNB's earnings are expected to grow with 12.12% in the coming years.