BOOKING HOLDINGS INC (BKNG) Stock Fundamental Analysis
USA - NASDAQ:BKNG - US09857L1089 - Common Stock
5070.02 USD
+117.71 (+2.38%)
5070.02 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to BKNG. BKNG was compared to 135 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make BKNG suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year BKNG was profitable.
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's Return On Assets of 15.69% is amongst the best of the industry. BKNG outperforms 93.33% of its industry peers.
BKNG's Return On Invested Capital of 54.90% is amongst the best of the industry. BKNG outperforms 98.52% of its industry peers.
BKNG had an Average Return On Invested Capital over the past 3 years of 39.14%. This is significantly above the industry average of 10.67%.
The last Return On Invested Capital (54.90%) for BKNG is above the 3 year average (39.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.69% | ||
| ROE | N/A | ||
| ROIC | 54.9% |
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
BKNG has a Profit Margin of 19.23%. This is amongst the best in the industry. BKNG outperforms 92.59% of its industry peers.
BKNG's Profit Margin has declined in the last couple of years.
BKNG has a Operating Margin of 33.26%. This is amongst the best in the industry. BKNG outperforms 98.52% of its industry peers.
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 | 33.26% | ||
| PM (TTM) | 19.23% | ||
| 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 BKNG is creating value.
The number of shares outstanding for BKNG has been reduced compared to 1 year ago.
Compared to 5 years ago, BKNG has less shares outstanding
The debt/assets ratio for BKNG is higher compared to a year ago.
2.2 Solvency
BKNG has an Altman-Z score of 6.16. This indicates that BKNG is financially healthy and has little risk of bankruptcy at the moment.
BKNG has a better Altman-Z score (6.16) than 86.67% of its industry peers.
The Debt to FCF ratio of BKNG is 2.00, which is an excellent value as it means it would take BKNG, only 2.00 years of fcf income to pay off all of its debts.
BKNG has a better Debt to FCF ratio (2.00) than 82.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2 | ||
| Altman-Z | 6.16 |
ROIC/WACC6.61
WACC8.31%
2.3 Liquidity
A Current Ratio of 1.25 indicates that BKNG should not have too much problems paying its short term obligations.
BKNG has a better Current ratio (1.25) than 62.96% of its industry peers.
A Quick Ratio of 1.25 indicates that BKNG should not have too much problems paying its short term obligations.
BKNG's Quick ratio of 1.25 is fine compared to the rest of the industry. BKNG outperforms 65.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.43% over the past year.
BKNG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.66% yearly.
The Revenue has grown by 11.72% 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 9.52% yearly.
EPS 1Y (TTM)23.43%
EPS 3Y60.13%
EPS 5Y12.66%
EPS Q2Q%32.22%
Revenue 1Y (TTM)11.72%
Revenue growth 3Y29.39%
Revenue growth 5Y9.52%
Sales Q2Q%16.03%
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 16.53% yearly.
The Revenue is expected to grow by 9.08% on average over the next years. This is quite good.
EPS Next Y20.66%
EPS Next 2Y18.08%
EPS Next 3Y17.32%
EPS Next 5Y16.53%
Revenue Next Year12.42%
Revenue Next 2Y10.49%
Revenue Next 3Y9.69%
Revenue Next 5Y9.08%
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 24.65, the valuation of BKNG can be described as rather expensive.
BKNG's Price/Earnings ratio is a bit cheaper when compared to the industry. BKNG is cheaper than 62.96% of the companies in the same industry.
BKNG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.37, BKNG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, BKNG is valued a bit cheaper than the industry average as 62.96% of the companies are valued more expensively.
BKNG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 19.37 |
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 63.70% of the companies in the same industry.
78.52% of the companies in the same industry are more expensive than BKNG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.78 | ||
| EV/EBITDA | 18.04 |
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.
BKNG's earnings are expected to grow with 17.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)1.95
EPS Next 2Y18.08%
EPS Next 3Y17.32%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, BKNG is not a good candidate for dividend investing.
BKNG's Dividend Yield is a higher than the industry average which is at 6.99.
Compared to an average S&P500 Dividend Yield of 2.38, BKNG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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
BKNG pays out 25.16% of its income as dividend. This is a sustainable payout ratio.
DP25.16%
EPS Next 2Y18.08%
EPS Next 3Y17.32%
5070.02
+117.71 (+2.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners96%
Inst Owner Change0.05%
Ins Owners0.16%
Ins Owner Change-4.83%
Market Cap164.32B
Analysts76.96
Price Target6173.99 (21.77%)
Short Float %1.83%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend34.87
Dividend Growth(5Y)N/A
DP25.16%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.25%
Min EPS beat(2)8.15%
Max EPS beat(2)40.35%
EPS beat(4)4
Avg EPS beat(4)16.92%
Min EPS beat(4)6.1%
Max EPS beat(4)40.35%
EPS beat(8)8
Avg EPS beat(8)15.82%
EPS beat(12)12
Avg EPS beat(12)14.54%
EPS beat(16)16
Avg EPS beat(16)33.37%
Revenue beat(2)2
Avg Revenue beat(2)1.7%
Min Revenue beat(2)1.66%
Max Revenue beat(2)1.73%
Revenue beat(4)4
Avg Revenue beat(4)2.41%
Min Revenue beat(4)1.66%
Max Revenue beat(4)3.52%
Revenue beat(8)5
Avg Revenue beat(8)1.22%
Revenue beat(12)8
Avg Revenue beat(12)1.15%
Revenue beat(16)11
Avg Revenue beat(16)1.53%
PT rev (1m)0%
PT rev (3m)9.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)0.01%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 19.37 | ||
| P/S | 6.57 | ||
| P/FCF | 17.78 | ||
| P/OCF | 17.16 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.04 |
EPS(TTM)205.65
EY4.06%
EPS(NY)261.73
Fwd EY5.16%
FCF(TTM)285.1
FCFY5.62%
OCF(TTM)295.53
OCFY5.83%
SpS772.14
BVpS-205.4
TBVpS-333.32
PEG (NY)1.19
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.69% | ||
| ROE | N/A | ||
| ROCE | 69.09% | ||
| ROIC | 54.9% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 33.26% | ||
| PM (TTM) | 19.23% | ||
| GM | N/A | ||
| FCFM | 36.92% |
ROA(3y)16.97%
ROA(5y)11.22%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)39.14%
ROIC(5y)26.17%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)49.26%
ROCE(5y)32.93%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 54.17% | ||
| Cap/Sales | 1.35% | ||
| Interest Coverage | 7.52 | ||
| Cash Conversion | 107.04% | ||
| Profit Quality | 191.98% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 6.16 |
F-Score6
WACC8.31%
ROIC/WACC6.61
Cap/Depr(3y)74.21%
Cap/Depr(5y)71.46%
Cap/Sales(3y)1.86%
Cap/Sales(5y)2.51%
Profit Quality(3y)166.56%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.43%
EPS 3Y60.13%
EPS 5Y12.66%
EPS Q2Q%32.22%
EPS Next Y20.66%
EPS Next 2Y18.08%
EPS Next 3Y17.32%
EPS Next 5Y16.53%
Revenue 1Y (TTM)11.72%
Revenue growth 3Y29.39%
Revenue growth 5Y9.52%
Sales Q2Q%16.03%
Revenue Next Year12.42%
Revenue Next 2Y10.49%
Revenue Next 3Y9.69%
Revenue Next 5Y9.08%
EBIT growth 1Y30.84%
EBIT growth 3Y46.73%
EBIT growth 5Y8.2%
EBIT Next Year28.03%
EBIT Next 3Y16.75%
EBIT Next 5Y14.55%
FCF growth 1Y43.3%
FCF growth 3Y46.4%
FCF growth 5Y11.91%
OCF growth 1Y40.83%
OCF growth 3Y43.44%
OCF growth 5Y11.34%