Booking Holdings Inc. Fundamental Analysis
Booking Holdings Inc. (BKNG) shows moderate financial fundamentals with a PE ratio of 21.23, profit margin of 22.23%, and ROE of -95.80%. The company generates $27.2B in annual revenue with strong year-over-year growth of 13.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -5.4/100 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
ExcellentBKNG trades at attractive valuation levels.
Growth Score
ModerateBKNG shows steady but slowing expansion.
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 21.23 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BKNG's PEG of 1.23 indicates fair valuation.
Price to Book
The market values Booking Holdings Inc. at -14.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.16 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 $22.23 as profit after all expenses.
Operating Margin
Core operations generate 34.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-95.80 in profit for every $100 of shareholder equity.
ROA
Booking Holdings Inc. generates $22.20 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 $9.16B, reflecting robust business health.
Free Cash Flow
Booking Holdings Inc. generates strong free cash flow of $8.86B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.43 in free cash annually.
FCF Yield
BKNG converts 7.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
-14.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.96
vs 25 benchmark
ROA
Return on assets percentage
0.22
vs 25 benchmark
ROCE
Return on capital employed
1.20
vs 25 benchmark
How BKNG Stacks Against Its Sector Peers
| Metric | BKNG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.23 | 23.90 | Better (Cheaper) |
| ROE | -95.80% | 1176.00% | Weak |
| Net Margin | 22.23% | 2549.00% | Weak |
| Debt/Equity | -2.17 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 1.06 | 2.83 | Neutral |
| ROA | 22.20% | -8408.00% (disorted) | Strong |
BKNG outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
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
400.08%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
11464.59%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
13876.28%
Industry Style: Cyclical, Growth, Discretionary
High Growth