Booking Holdings Inc. Fundamental Analysis (NASDAQ: BKNG)
Booking Holdings Inc. Fundamental Analysis (NASDAQ: BKNG)
Booking Holdings Inc. (NASDAQ: BKNG) shows moderate financial fundamentals with a PE ratio of 23.33, profit margin of 25.53%, and ROE of -96.70%. The company generates $28.5B 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 -8.6/100 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 23.33 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BKNG's PEG of 0.42 indicates potential undervaluation.
Price to Book
The market values Booking Holdings Inc. at -15.06 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.87 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 $25.53 as profit after all expenses.
Operating Margin
Core operations generate 34.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-96.70 in profit for every $100 of shareholder equity.
ROA
Booking Holdings Inc. generates $24.29 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 $9.95B, reflecting robust business health.
Free Cash Flow
Booking Holdings Inc. generates strong free cash flow of $9.62B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.42 in free cash annually.
FCF Yield
BKNG converts 5.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
-15.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.97
vs 25 benchmark
ROA
Return on assets percentage
0.24
vs 25 benchmark
ROCE
Return on capital employed
1.13
vs 25 benchmark
How BKNG Stacks Against Its Sector Peers
| Metric | BKNG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.33 | 27.15 | Better (Cheaper) |
| ROE | -96.70% | 974.00% | Weak |
| Net Margin | 25.53% | -3002.00% (disorted) | Strong |
| Debt/Equity | -1.92 | 0.62 | Strong (Low Leverage) |
| Current Ratio | 1.09 | 2.26 | Neutral |
| ROA | 24.29% | 337.00% | Weak |
BKNG outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, 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