Booking Holdings Inc.
Booking Holdings Inc. Fundamental Analysis
Booking Holdings Inc. (BKNG) shows moderate financial fundamentals with a PE ratio of 28.69, profit margin of 20.08%, and ROE of -93.64%. The company generates $26.3B in annual revenue with strong year-over-year growth of 11.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 8.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BKNG's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBKNG demonstrates superior asset utilization.
Valuation Score
WeakBKNG trades at a premium to fair value.
Growth Score
ExcellentBKNG delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBKNG maintains a strong and stable balance sheet.
Profitability Score
ModerateBKNG maintains healthy but balanced margins.
Key Financial Metrics
Is BKNG Expensive or Cheap?
P/E Ratio
BKNG trades at 28.69 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BKNG's PEG of 3.78 indicates potential overvaluation.
Price to Book
The market values Booking Holdings Inc. at -27.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.19 times EBITDA. This signals the market has high growth expectations.
How Well Does BKNG Make Money?
Net Profit Margin
For every $100 in sales, Booking Holdings Inc. keeps $20.08 as profit after all expenses.
Operating Margin
Core operations generate 34.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-93.64 in profit for every $100 of shareholder equity.
ROA
Booking Holdings Inc. generates $18.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Booking Holdings Inc. generates strong operating cash flow of $9.18B, reflecting robust business health.
Free Cash Flow
Booking Holdings Inc. generates strong free cash flow of $8.87B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.20 in free cash annually.
FCF Yield
BKNG converts 5.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
-27.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-3.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.94
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.74
vs 25 benchmark
How BKNG Stacks Against Its Sector Peers
| Metric | BKNG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.69 | 24.82 | Worse (Expensive) |
| ROE | -93.64% | 1182.00% | Weak |
| Net Margin | 20.08% | -370.00% (disorted) | Strong |
| Debt/Equity | -3.46 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.33 | 2.59 | Neutral |
| ROA | 18.47% | -6142.00% (disorted) | Strong |
BKNG outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Booking Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
101.90%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
54.92%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
119.21%
Industry Style: Cyclical, Growth, Discretionary
High Growth