BOOKING HOLDINGS INC (BKNG) Stock Fundamental Analysis
USA - NASDAQ:BKNG - US09857L1089 - Common Stock
5350.56 USD
-48.71 (-0.9%)
5350.56 USD
0 (0%)
Overall BKNG gets a fundamental rating of 6 out of 10. We evaluated BKNG against 135 industry peers in the Hotels, Restaurants & Leisure industry. BKNG gets an excellent profitability rating and is at the same time showing great financial health properties. BKNG is showing excellent growth while it is valued at reasonable prices. 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.
In the past 5 years BKNG has always been profitable.
Each year in the past 5 years BKNG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.69%, BKNG belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
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 15.67%.
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.
In the last couple of years the Profit Margin of BKNG has declined.
BKNG has a better Operating Margin (33.26%) than 98.52% of its industry peers.
BKNG's Operating Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BKNG is creating value.
BKNG has less shares outstanding than it did 1 year ago.
BKNG has less shares outstanding than it did 5 years ago.
BKNG has a worse debt/assets ratio than last year.
2.2 Solvency
BKNG has an Altman-Z score of 6.40. This indicates that BKNG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.40, BKNG belongs to the top of the industry, outperforming 85.93% of the companies in the same industry.
BKNG has a debt to FCF ratio of 2.00. This is a very positive value and a sign of high solvency as it would only need 2.00 years to pay back of all of its debts.
BKNG has a Debt to FCF ratio of 2.00. This is amongst the best in the industry. BKNG outperforms 82.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2 | ||
| Altman-Z | 6.4 |
ROIC/WACC6.2
WACC8.86%
2.3 Liquidity
BKNG has a Current Ratio of 1.25. This is a normal value and indicates that BKNG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BKNG (1.25) is better than 63.70% 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
BKNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.43%, 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 11.72%.
Measured over the past years, BKNG shows a quite strong growth in Revenue. The Revenue has been growing by 9.52% on average per year.
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
The Earnings Per Share is expected to grow by 16.53% 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 9.08% on average per year.
EPS Next Y20.66%
EPS Next 2Y18.08%
EPS Next 3Y17.32%
EPS Next 5Y16.53%
Revenue Next Year12.43%
Revenue Next 2Y10.49%
Revenue Next 3Y9.75%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.02, BKNG can be considered very expensive at the moment.
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 (27.76), we can say BKNG is valued inline with the index average.
A Price/Forward Earnings ratio of 20.44 indicates a rather expensive valuation of BKNG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BKNG is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.18. BKNG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.02 | ||
| Fwd PE | 20.44 |
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 65.93% 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 76.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.77 | ||
| EV/EBITDA | 19.65 |
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 17.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)2.05
EPS Next 2Y18.08%
EPS Next 3Y17.32%
5. Dividend
5.1 Amount
BKNG has a yearly dividend return of 0.68%, which is pretty low.
BKNG's Dividend Yield is a higher than the industry average which is at 6.83.
Compared to an average S&P500 Dividend Yield of 2.41, BKNG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
25.16% of the earnings are spent on dividend by BKNG. This is a low number and sustainable payout ratio.
DP25.16%
EPS Next 2Y18.08%
EPS Next 3Y17.32%
5350.56
-48.71 (-0.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners96%
Inst Owner Change-8.06%
Ins Owners0.16%
Ins Owner Change-4.83%
Market Cap173.41B
Analysts77.39
Price Target6173.99 (15.39%)
Short Float %1.83%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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)0.32%
EPS NY rev (1m)0.01%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.02 | ||
| Fwd PE | 20.44 | ||
| P/S | 6.93 | ||
| P/FCF | 18.77 | ||
| P/OCF | 18.11 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.65 |
EPS(TTM)205.65
EY3.84%
EPS(NY)261.73
Fwd EY4.89%
FCF(TTM)285.1
FCFY5.33%
OCF(TTM)295.53
OCFY5.52%
SpS772.14
BVpS-205.4
TBVpS-333.32
PEG (NY)1.26
PEG (5Y)2.05
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 | 6.4 |
F-Score6
WACC8.86%
ROIC/WACC6.2
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 Year12.43%
Revenue Next 2Y10.49%
Revenue Next 3Y9.75%
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%