5085.22 USD
-68.19 (-1.32%)
5050.01 USD
-35.21 (-0.69%)
We assign a fundamental rating of 6 out of 10 to BKNG. BKNG was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. Both the health and profitability get an excellent rating, making BKNG a very profitable company, without any liquidiy or solvency issues. BKNG is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, BKNG could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- BKNG had positive earnings in the past year.
- BKNG had a positive operating cash flow in the past year.
- BKNG had positive earnings in each of the past 5 years.
- In the past 5 years BKNG always reported a positive cash flow from operatings.
1.2 Ratios
- BKNG has a Return On Assets of 17.54%. This is amongst the best in the industry. BKNG outperforms 95.45% of its industry peers.
- BKNG has a better Return On Invested Capital (58.48%) than 99.24% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BKNG is significantly above the industry average of 10.37%.
- The last Return On Invested Capital (58.48%) for BKNG 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
- The Profit Margin of BKNG (19.37%) is better than 92.42% of its industry peers.
- In the last couple of years the Profit Margin of BKNG has declined.
- Looking at the Operating Margin, with a value of 35.29%, BKNG belongs to the top of the industry, outperforming 98.48% of the companies in the same industry.
- In the last couple of years the Operating Margin of BKNG 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
- BKNG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for BKNG has been reduced compared to 1 year ago.
- BKNG has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for BKNG is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.05 indicates that BKNG is not in any danger for bankruptcy at the moment.
- The Altman-Z score of BKNG (7.05) is better than 92.42% of its industry peers.
- The Debt to FCF ratio of BKNG is 2.04, which is a good value as it means it would take BKNG, 2.04 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.04, BKNG belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.04 | ||
| Altman-Z | 7.05 |
ROIC/WACC6.85
WACC8.54%
2.3 Liquidity
- A Current Ratio of 1.33 indicates that BKNG should not have too much problems paying its short term obligations.
- BKNG's Current ratio of 1.33 is fine compared to the rest of the industry. BKNG outperforms 65.91% of its industry peers.
- A Quick Ratio of 1.33 indicates that BKNG should not have too much problems paying its short term obligations.
- BKNG has a better Quick ratio (1.33) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
- BKNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.18%, which is quite impressive.
- BKNG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.66% yearly.
- BKNG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.96%.
- BKNG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.52% yearly.
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, BKNG will show a quite strong growth in Revenue. The Revenue will grow by 9.39% on average per year.
EPS Next Y21.87%
EPS Next 2Y20.4%
EPS Next 3Y18.85%
EPS Next 5Y17.61%
Revenue Next Year13.74%
Revenue Next 2Y11.41%
Revenue Next 3Y10.5%
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.
- 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
- The Price/Earnings ratio is 22.98, which indicates a rather expensive current valuation of BKNG.
- Based on the Price/Earnings ratio, BKNG is valued a bit cheaper than 63.64% of the companies in the same industry.
- BKNG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 18.69 indicates a rather expensive valuation of BKNG.
- Based on the Price/Forward Earnings ratio, BKNG is valued a bit cheaper than 66.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, BKNG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 18.69 |
4.2 Price Multiples
- BKNG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. BKNG is more expensive than 62.12% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BKNG is valued a bit cheaper than the industry average as 71.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.71 | ||
| EV/EBITDA | 16.74 |
4.3 Compensation for Growth
- BKNG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of BKNG may justify a higher PE ratio.
- BKNG's earnings are expected to grow with 18.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)1.81
EPS Next 2Y20.4%
EPS Next 3Y18.85%
5. Dividend
5.1 Amount
- BKNG has a yearly dividend return of 0.75%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.21, BKNG pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, BKNG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
- BKNG does not have a reliable dividend history as it only pays dividend since a couple or years.
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 BKNG. This is a low number and sustainable payout ratio.
DP24.39%
EPS Next 2Y20.4%
EPS Next 3Y18.85%
BOOKING HOLDINGS INC / BKNG FAQ
What is the ChartMill fundamental rating of BOOKING HOLDINGS INC (BKNG) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BKNG.
What is the valuation status for BKNG stock?
ChartMill assigns a valuation rating of 4 / 10 to BOOKING HOLDINGS INC (BKNG). This can be considered as Fairly Valued.
What is the profitability of BKNG stock?
BOOKING HOLDINGS INC (BKNG) has a profitability rating of 7 / 10.
What are the PE and PB ratios of BOOKING HOLDINGS INC (BKNG) stock?
The Price/Earnings (PE) ratio for BOOKING HOLDINGS INC (BKNG) is 22.98 and the Price/Book (PB) ratio is -34.61.
Can you provide the dividend sustainability for BKNG stock?
The dividend rating of BOOKING HOLDINGS INC (BKNG) is 2 / 10 and the dividend payout ratio is 24.39%.