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BKNG

Booking Holdings NasdaqGS:BKNG Stock Report

Last Price

US$1.67k

Market Cap

US$66.3b

7D

-11.0%

1Y

-33.0%

Updated

24 Sep, 2022

Data

Company Financials +
BKNG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance3/6
Financial Health5/6
Dividends0/6

BKNG Stock Overview

Booking Holdings Inc. provides travel and restaurant online reservation and related services worldwide.

Booking Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Booking Holdings
Historical stock prices
Current Share PriceUS$1,669.88
52 Week HighUS$2,715.66
52 Week LowUS$1,646.04
Beta1.23
1 Month Change-16.86%
3 Month Change-13.53%
1 Year Change-32.97%
3 Year Change-14.11%
5 Year Change-8.79%
Change since IPO303.34%

Recent News & Updates

Sep 13
Is Now An Opportune Moment To Examine Booking Holdings Inc. (NASDAQ:BKNG)?

Is Now An Opportune Moment To Examine Booking Holdings Inc. (NASDAQ:BKNG)?

Let's talk about the popular Booking Holdings Inc. ( NASDAQ:BKNG ). The company's shares received a lot of attention...

Aug 29

Booking Holdings: I Use Nothing Else

Summary Booking Holdings is the largest online travel agency focusing solely on hotels worldwide. It has a massive moat that others cannot easily copy. Booking's valuation is high. Compared to its peers in the OTA business, its valuation is among the highest. We might be a bit early going all in on Booking Holdings, but it should be on investors' radar. Booking Holdings Inc. (BKNG) is probably the only website or app I use to book my hotels. I'm a very frequent business traveler and frequent traveler. From time to time, I tried to book directly on the hotel's website to save a buck, but it wasted tons of my time, making it more complicated, and in the end, it wasn't worth it. Booking.com is the largest online travel agency focusing solely on hotels worldwide. It has a massive moat that others cannot easily copy. It's a fantastic business that works after the agency model. It's capital-light and scalable. Booking's valuation is high. Compared to its peers in the OTA business, its valuation is among the highest, even compared to the recent addition of Airbnb (ABNB). The high valuation could be justified as Booking.com is enjoying the fruits of its network effects in the hotel industry. After two years of lockdown, people want to travel and explore the world. With high inflation, the desire is muted, so that we might be a bit early going all in on Booking.com, but it should be on investors' radar. BKNG PS Ratio (Annual) data by YCharts The Hotel Business and Booking's Network Effect A competitive advantage of scale results from two interrelated topics. First, the size of the company's advantage relative to its competitors, and second, the type of advantage that results from the comparative advantage. When a user like me considers a hotel in a city, it's a complex decision that includes price, location, amenities, and ease of booking. The hotel industry is fragmented, and especially in Europe, Asia, Latin America, Africa, and the Middle East, there are not the same big players that my friends from the U.S. frequently use. The U.S. is concentrated around a few large hotel chains. When I fly to Croatia, Austria, or any other European or Asian country, my go-to platform is, by default, Booking.com. The product/service complexity on the demand side and the fixed-cost requirements on the supply side are strong moats. Evidence showed that more listings on a lodging service site like Booking.com attract more travelers and drive higher occupancy rates. This strengthens the demand side network effects for Booking.com further. In conclusion, Booking.com benefits from its global brand and strong supply side networking effects. Every new listing increases the relative attractiveness of the business, which in turn attracts more users (like me), making successful competitive attacks unlikely. Investment Framework Like my article about Stanley Black & Decker (SWK), I'd like to rate Booking.com based on my investment framework. Definitely check out that article; it's a deep-value contrarian opportunity. Invest in companies with a track record Booking.com has a fantastic track record of growth and market expansion. It's a global brand and uses mainly an agency model for hotel bookings. It's capital-light and enjoys supply-side networking effects. BKNG data by YCharts Invest in businesses that operate in industries that are not prone to change quickly Booking.com operates a straightforward business model. It connects users with hotels. The demand-side complexity provides a moat against new competitors in the industry. A new competitor would need to operate globally as travelers rarely check their city for hotels. They want to travel somewhere else. So the risk of local competition, like in the case of Uber Technologies (UBER), is low. A new competitor would need to accumulate thousands of offerings on a global scale. Booking Holdings Inc.'s platform is simple and provides all the necessary features users, like me, need. Booking.com's services are essential for travelers within the fragmented hotel industry. Each user has a unique demand for a hotel. Some want a great view, others a hotel with a kitchen and others are on a tight budget. Paying through Booking's platform provides security for the user and accountability for the hotels. The latest disruption to the industry was Airbnb. Airbnb added a whole new layer of offerings to the platform - the sharing industry. Booking.com is slowly making it easier for private offerings to enter the platform. Apart from that, the industry is simple and doesn't change rapidly. Buy companies under distress in industries under distress Even though Booking.com had some tough quarters during the pandemic's beginning, its capital-light operating model allowed it to go through those times with bravado. It's not under distress compared to, for example, Stanley Black and Decker. Still, it's a tough environment due to higher energy prices, inflation, and consumers' focus on necessities instead of luxury travel. The travel industry has a murky outlook due to rising energy prices and inflation per se. Buy businesses that have a durable competitive advantage or moat We discussed this topic at the beginning of this article. Booking Holdings Inc. has a wide and strong moat due to networking effects on the supply-side and demand complexity on the demand side. Buy businesses at a discount to their intrinsic value This one is tricky because Booking Holdings Inc. is not trading at low valuations. The market knows it's a fantastic business that keeps its valuation high. Booking.com Historical Valuation Fastgraphs (fastgraphs) Since its pre-pandemic high of $2171 with a price to operating cash flow ratio of 22.39, Booking Holdings Inc. dropped to $1910 and a P/OFC ratio of 17.83. The short-term outlook is murky, which makes it hard for the market to evaluate the price. Over the long term, Booking.com has all the requirements for steady growth and is currently trading at the lower valuation range. Buy businesses with low risk and high uncertainty Booking Holdings Inc. operates as OTA in the hospitality industry. While the hospitality industry can be risky, Booking.com has the privilege of operating as an agent for hotels. That means that it operates capital-light and is worldwide scalable.

Shareholder Returns

BKNGUS HospitalityUS Market
7D-11.0%-10.0%-5.2%
1Y-33.0%-33.9%-23.1%

Return vs Industry: BKNG matched the US Hospitality industry which returned -33.9% over the past year.

Return vs Market: BKNG underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is BKNG's price volatile compared to industry and market?
BKNG volatility
BKNG Average Weekly Movement5.5%
Hospitality Industry Average Movement7.1%
Market Average Movement6.9%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.8%

Stable Share Price: BKNG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BKNG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199719,450Glenn Fogelhttps://www.bookingholdings.com

Booking Holdings Inc. provides travel and restaurant online reservation and related services worldwide. The company operates Booking.com, which offers online accommodation reservations; Rentalcars.com that provides online rental car reservation services; Priceline, which offer online travel reservation services, and consumers hotel, flight, and rental car reservation services, as well as vacation packages, cruises, and hotel distribution services. It also operates Agoda that provides online accommodation reservation services, as well as flight, ground transportation and activities reservation services.

Booking Holdings Fundamentals Summary

How do Booking Holdings's earnings and revenue compare to its market cap?
BKNG fundamental statistics
Market CapUS$66.30b
Earnings (TTM)US$1.54b
Revenue (TTM)US$14.65b

42.9x

P/E Ratio

4.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BKNG income statement (TTM)
RevenueUS$14.65b
Cost of RevenueUS$2.31b
Gross ProfitUS$12.34b
Other ExpensesUS$10.79b
EarningsUS$1.54b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)38.89
Gross Margin84.24%
Net Profit Margin10.54%
Debt/Equity Ratio236.7%

How did BKNG perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is BKNG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BKNG?

Other financial metrics that can be useful for relative valuation.

BKNG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.2x
Enterprise Value/EBITDA13.8x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

How does BKNG's PE Ratio compare to its peers?

BKNG PE Ratio vs Peers
The above table shows the PE ratio for BKNG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average38.7x
ABNB Airbnb
52.1x22.1%US$65.1b
MAR Marriott International
25.6x12.9%US$44.6b
HLT Hilton Worldwide Holdings
33.5x14.4%US$32.5b
EXPE Expedia Group
43.4x34.5%US$14.4b
BKNG Booking Holdings
42.9x22.2%US$66.3b

Price-To-Earnings vs Peers: BKNG is expensive based on its Price-To-Earnings Ratio (42.9x) compared to the peer average (38.7x).


Price to Earnings Ratio vs Industry

How does BKNG's PE Ratio compare vs other companies in the US Hospitality Industry?

Price-To-Earnings vs Industry: BKNG is expensive based on its Price-To-Earnings Ratio (42.9x) compared to the US Hospitality industry average (16.6x)


Price to Earnings Ratio vs Fair Ratio

What is BKNG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BKNG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.9x
Fair PE Ratio49.8x

Price-To-Earnings vs Fair Ratio: BKNG is good value based on its Price-To-Earnings Ratio (42.9x) compared to the estimated Fair Price-To-Earnings Ratio (49.8x).


Share Price vs Fair Value

What is the Fair Price of BKNG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BKNG ($1669.88) is trading below our estimate of fair value ($5031.43)

Significantly Below Fair Value: BKNG is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Booking Holdings forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


22.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKNG's forecast earnings growth (22.2% per year) is above the savings rate (1.9%).

Earnings vs Market: BKNG's earnings (22.2% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: BKNG's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BKNG's revenue (11.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: BKNG's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BKNG's Return on Equity is forecast to be very high in 3 years time (82.4%).


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Past Performance

How has Booking Holdings performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-24.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BKNG has a large one-off loss of $1.8B impacting its June 30 2022 financial results.

Growing Profit Margin: BKNG's current net profit margins (10.5%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: BKNG's earnings have declined by 24.6% per year over the past 5 years.

Accelerating Growth: BKNG's earnings growth over the past year (272.9%) exceeds its 5-year average (-24.6% per year).

Earnings vs Industry: BKNG earnings growth over the past year (272.9%) exceeded the Hospitality industry 36.2%.


Return on Equity

High ROE: Whilst BKNG's Return on Equity (38.58%) is high, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Booking Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BKNG's short term assets ($14.9B) exceed its short term liabilities ($10.3B).

Long Term Liabilities: BKNG's short term assets ($14.9B) exceed its long term liabilities ($10.2B).


Debt to Equity History and Analysis

Debt Level: BKNG has more cash than its total debt.

Reducing Debt: BKNG's debt to equity ratio has increased from 73.2% to 236.7% over the past 5 years.

Debt Coverage: BKNG's debt is well covered by operating cash flow (66%).

Interest Coverage: BKNG's interest payments on its debt are well covered by EBIT (15.5x coverage).


Balance Sheet


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Dividend

What is Booking Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.28%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate BKNG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BKNG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BKNG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BKNG's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BKNG has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Glenn Fogel (60 yo)

5.67yrs

Tenure

US$53,982,195

Compensation

Mr. Glenn D. Fogel has been Chief Executive Officer of Booking.com B.V. June 26, 2019. Mr. Fogel has been the Chief Executive Officer and President of Booking Holdings Inc. (fka The Priceline Group Inc.) s...


CEO Compensation Analysis

Compensation vs Market: Glenn's total compensation ($USD53.98M) is above average for companies of similar size in the US market ($USD13.05M).

Compensation vs Earnings: Glenn's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BKNG's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: BKNG's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BKNG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqGS:BKNG Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
01 Sep 22BuyUS$1,803,651Annox CapitalCompany1,000US$1,803.73
29 Aug 22BuyUS$956,183Robert MylodIndividual500US$1,912.37
08 Aug 22BuyUS$967,220Robert MylodIndividual500US$1,934.44
27 May 22SellUS$224,326Paulo PisanoIndividual100US$2,243.26
20 May 22SellUS$252,000Paulo PisanoIndividual120US$2,100.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 51.56% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.03%
The Vanguard Group, Inc.
3,189,150$5.3b0.31%0.13%
6.74%
BlackRock, Inc.
2,675,178$4.5b0%0.12%
4.68%
Capital Research and Management Company
1,859,300$3.1b14.16%0.22%
3.91%
State Street Global Advisors, Inc.
1,551,116$2.6b-4.82%0.15%
3.37%
T. Rowe Price Group, Inc.
1,336,204$2.2b-17.97%0.28%
2.14%
Dodge & Cox
850,171$1.4b-1.96%0.87%
2.06%
FMR LLC
818,030$1.4b-2.18%0.13%
1.86%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
739,281$1.2b15.17%0.44%
1.76%
Geode Capital Management, LLC
699,530$1.2b0.85%0.16%
1.55%
Harris Associates L.P.
616,383$1.0b-7.37%1.41%
1.44%
BNY Mellon Asset Management
573,304$957.3m2.31%0.23%
1.38%
Janus Henderson Group plc
548,980$916.7m1.93%0.55%
1.35%
J.P. Morgan Asset Management, Inc.
537,594$897.7m-29.3%0.18%
1.21%
Ninety One UK Limited
479,460$800.6m9.17%1.4%
1.14%
Amundi Asset Management
453,407$757.1m0.61%0.25%
1.07%
Invesco Ltd.
423,479$707.2m-14.25%0.25%
1.06%
Norges Bank Investment Management
422,543$705.6m0%0.1%
1.03%
Northern Trust Global Investments
409,500$683.8m-3.24%0.15%
0.9%
Walter Scott & Partners Limited
355,422$593.5m-4.58%1.71%
0.88%
Franklin Resources, Inc.
351,154$586.4m-5.92%0.26%
0.87%
AKO Capital LLP
345,275$576.6m-10.88%8.79%
0.84%
Schroder Investment Management Limited
334,032$557.8m22.92%0.46%
0.8%
GuardCap Asset Management Limited
315,767$527.3m0.99%8.61%
0.76%
Baillie Gifford & Co.
300,219$501.3m-4.29%0.27%
0.72%
AllianceBernstein L.P.
286,374$478.2m80.24%0.21%

Company Information

Booking Holdings Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Booking Holdings Inc.
  • Ticker: BKNG
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Implied Market Cap: US$66.305b
  • Shares outstanding: 39.71m
  • Website: https://www.bookingholdings.com

Number of Employees


Location

  • Booking Holdings Inc.
  • 800 Connecticut Avenue
  • Norwalk
  • Connecticut
  • 6854
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKNGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1999
PCE1DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1999
PCE1XTRA (XETRA Trading Platform)YesCommon StockDEEURMar 1999
BKNG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1999
BKNGSNSE (Santiago Stock Exchange)YesCommon StockCLUSDMar 1999
BKNGSWX (SIX Swiss Exchange)YesCommon StockCHCHFMar 1999
0W2YLSE (London Stock Exchange)YesCommon StockGBUSDMar 1999
PCLNSWX (SIX Swiss Exchange)YesCommon StockCHUSDMar 1999
BOOKWBAG (Wiener Boerse AG)YesCommon StockATEURMar 1999
PCE1-UETLX (Eurotlx)YesCommon StockITEURMar 1999
BKNGBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDMar 1999
BKNGCLSNSE (Santiago Stock Exchange)YesCommon StockCLCLPMar 1999
BKNG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 175 REP 1 COMBRBRLMay 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.