BOOKING HOLDINGS INC (BKNG) Stock Fundamental Analysis
NASDAQ:BKNG - Nasdaq - US09857L1089 - Common Stock - Currency: USD
BKNG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. BKNG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BKNG is not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
In the past year BKNG had a positive cash flow from operations.
Each year in the past 5 years BKNG has been profitable.
BKNG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BKNG has a Return On Assets of 18.00%. This is amongst the best in the industry. BKNG outperforms 96.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 44.48%, BKNG belongs to the top of the industry, outperforming 98.47% of the companies in the same industry.
BKNG had an Average Return On Invested Capital over the past 3 years of 25.12%. This is significantly above the industry average of 10.55%.
The last Return On Invested Capital (44.48%) for BKNG is above the 3 year average (25.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18% | ||
| ROE | N/A | ||
| ROIC | 44.48% |
ROA(3y)11.54%
ROA(5y)11.52%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)25.12%
ROIC(5y)20.66%
1.3 Margins
BKNG has a better Profit Margin (21.85%) than 96.95% of its industry peers.
BKNG's Profit Margin has declined in the last couple of years.
BKNG has a Operating Margin of 27.92%. This is amongst the best in the industry. BKNG outperforms 93.89% of its industry peers.
BKNG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.92% | ||
| PM (TTM) | 21.85% | ||
| GM | N/A |
OM growth 3Y60.06%
OM growth 5Y-5.76%
PM growth 3Y184.9%
PM growth 5Y-6.11%
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.
Compared to 1 year ago, BKNG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.50 indicates that BKNG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.50, BKNG belongs to the top of the industry, outperforming 90.08% of the companies in the same industry.
The Debt to FCF ratio of BKNG is 1.91, which is an excellent value as it means it would take BKNG, only 1.91 years of fcf income to pay off all of its debts.
BKNG has a better Debt to FCF ratio (1.91) than 87.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.91 | ||
| Altman-Z | 6.5 |
ROIC/WACC5.03
WACC8.85%
2.3 Liquidity
BKNG has a Current Ratio of 1.23. This is a normal value and indicates that BKNG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.23, BKNG is in the better half of the industry, outperforming 62.60% of the companies in the same industry.
A Quick Ratio of 1.23 indicates that BKNG should not have too much problems paying its short term obligations.
The Quick ratio of BKNG (1.23) is better than 67.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
BKNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.81%, which is quite impressive.
The Earnings Per Share has been growing by 10.56% on average over the past years. This is quite good.
The Revenue has grown by 11.74% in the past year. This is quite good.
BKNG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.02% yearly.
EPS 1Y (TTM)21.81%
EPS 3Y220.59%
EPS 5Y10.56%
EPS Q2Q%16%
Revenue 1Y (TTM)11.74%
Revenue growth 3Y46.49%
Revenue growth 5Y8.02%
Sales Q2Q%8.9%
3.2 Future
BKNG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.54% yearly.
The Revenue is expected to grow by 8.88% on average over the next years. This is quite good.
EPS Next Y21.24%
EPS Next 2Y18.01%
EPS Next 3Y16.81%
EPS Next 5Y17.54%
Revenue Next Year10.07%
Revenue Next 2Y9.2%
Revenue Next 3Y9.07%
Revenue Next 5Y8.88%
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
Based on the Price/Earnings ratio of 26.50, the valuation of BKNG can be described as expensive.
BKNG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BKNG to the average of the S&P500 Index (28.28), we can say BKNG is valued inline with the index average.
A Price/Forward Earnings ratio of 22.08 indicates a rather expensive valuation of BKNG.
BKNG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BKNG is cheaper than 61.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 91.29. BKNG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.5 | ||
| Fwd PE | 22.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BKNG indicates a slightly more expensive valuation: BKNG is more expensive than 67.94% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BKNG indicates a somewhat cheap valuation: BKNG is cheaper than 77.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.39 | ||
| EV/EBITDA | 22.38 |
4.3 Compensation for Growth
BKNG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BKNG has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BKNG's earnings are expected to grow with 16.81% in the coming years.
PEG (NY)1.25
PEG (5Y)2.51
EPS Next 2Y18.01%
EPS Next 3Y16.81%
5. Dividend
5.1 Amount
BKNG has a yearly dividend return of 0.73%, which is pretty low.
Compared to an average industry Dividend Yield of 2.89, BKNG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, BKNG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
BKNG is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y18.01%
EPS Next 3Y16.81%
BOOKING HOLDINGS INC
NASDAQ:BKNG (1/29/2025, 10:24:22 PM)
After market: 4721.86 0 (0%)4721.86
+37.18 (+0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners96.31%
Inst Owner Change-0.65%
Ins Owners0.14%
Ins Owner Change-1.12%
Market Cap156.29B
Analysts77.39
Price Target5323.59 (12.74%)
Short Float %2.17%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.58%
Min EPS beat(2)6.1%
Max EPS beat(2)7.05%
EPS beat(4)4
Avg EPS beat(4)15.03%
Min EPS beat(4)5.07%
Max EPS beat(4)41.9%
EPS beat(8)8
Avg EPS beat(8)13.6%
EPS beat(12)12
Avg EPS beat(12)38.33%
EPS beat(16)15
Avg EPS beat(16)34.32%
Revenue beat(2)1
Avg Revenue beat(2)1.16%
Min Revenue beat(2)-0.41%
Max Revenue beat(2)2.74%
Revenue beat(4)2
Avg Revenue beat(4)0.93%
Min Revenue beat(4)-0.41%
Max Revenue beat(4)2.74%
Revenue beat(8)4
Avg Revenue beat(8)0.83%
Revenue beat(12)7
Avg Revenue beat(12)0.9%
Revenue beat(16)10
Avg Revenue beat(16)1.73%
PT rev (1m)3.67%
PT rev (3m)25.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)0%
EPS NY rev (3m)4.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.5 | ||
| Fwd PE | 22.08 | ||
| P/S | 6.78 | ||
| P/FCF | 18.39 | ||
| P/OCF | 17.47 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.38 |
EPS(TTM)178.18
EY3.77%
EPS(NY)213.81
Fwd EY4.53%
FCF(TTM)256.83
FCFY5.44%
OCF(TTM)270.33
OCFY5.73%
SpS696.44
BVpS-110.36
TBVpS-239.91
PEG (NY)1.25
PEG (5Y)2.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18% | ||
| ROE | N/A | ||
| ROCE | 56.96% | ||
| ROIC | 44.48% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 27.92% | ||
| PM (TTM) | 21.85% | ||
| GM | N/A | ||
| FCFM | 36.88% |
ROA(3y)11.54%
ROA(5y)11.52%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)25.12%
ROIC(5y)20.66%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)32.16%
ROCE(5y)26.46%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y60.06%
OM growth 5Y-5.76%
PM growth 3Y184.9%
PM growth 5Y-6.11%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.91 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 78.7% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 7.15 | ||
| Cash Conversion | 127.76% | ||
| Profit Quality | 168.81% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 6.5 |
F-Score5
WACC8.85%
ROIC/WACC5.03
Cap/Depr(3y)74.09%
Cap/Depr(5y)72.63%
Cap/Sales(3y)2.18%
Cap/Sales(5y)2.64%
Profit Quality(3y)193.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.81%
EPS 3Y220.59%
EPS 5Y10.56%
EPS Q2Q%16%
EPS Next Y21.24%
EPS Next 2Y18.01%
EPS Next 3Y16.81%
EPS Next 5Y17.54%
Revenue 1Y (TTM)11.74%
Revenue growth 3Y46.49%
Revenue growth 5Y8.02%
Sales Q2Q%8.9%
Revenue Next Year10.07%
Revenue Next 2Y9.2%
Revenue Next 3Y9.07%
Revenue Next 5Y8.88%
EBIT growth 1Y1.58%
EBIT growth 3Y134.48%
EBIT growth 5Y1.8%
EBIT Next Year22.07%
EBIT Next 3Y15.2%
EBIT Next 5Y13.73%
FCF growth 1Y99.27%
FCF growth 3YN/A
FCF growth 5Y7.41%
OCF growth 1Y92.02%
OCF growth 3Y342.08%
OCF growth 5Y6.59%