NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$95.5b

Last Updated

2021/09/19 22:10 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

High growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Booking Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BKNG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BKNG's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

BKNG

-0.5%

US Hospitality

-0.6%

US Market


1 Year Return

34.2%

BKNG

31.3%

US Hospitality

33.8%

US Market

Return vs Industry: BKNG exceeded the US Hospitality industry which returned 31.3% over the past year.

Return vs Market: BKNG matched the US Market which returned 33.8% over the past year.


Shareholder returns

BKNGIndustryMarket
7 Day0.9%-0.5%-0.6%
30 Day12.1%8.7%1.0%
90 Day2.8%-1.5%3.4%
1 Year34.2%34.2%31.8%31.3%35.8%33.8%
3 Year18.8%18.8%6.1%2.4%60.0%50.1%
5 Year59.6%59.6%44.0%34.5%123.0%98.7%

Long-Term Price Volatility Vs. Market

How volatile is Booking Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Booking Holdings undervalued compared to its fair value and its price relative to the market?

9.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BKNG ($2325.37) is trading below our estimate of fair value ($2575.07)

Significantly Below Fair Value: BKNG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BKNG is poor value based on its PE Ratio (230.6x) compared to the US Hospitality industry average (25.4x).

PE vs Market: BKNG is poor value based on its PE Ratio (230.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: BKNG is poor value based on its PEG Ratio (7.3x)


Price to Book Ratio

PB vs Industry: BKNG is overvalued based on its PB Ratio (19.9x) compared to the US Hospitality industry average (3.5x).


Future Growth

How is Booking Holdings forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

31.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKNG's forecast earnings growth (31.8% per year) is above the savings rate (2%).

Earnings vs Market: BKNG's earnings (31.8% per year) are forecast to grow faster than the US market (14.8% per year).

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

Revenue vs Market: BKNG's revenue (19.4% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: BKNG's revenue (19.4% 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 (89.9%).


Past Performance

How has Booking Holdings performed over the past 5 years?

-7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKNG has a large one-off gain of $734.0M impacting its June 30 2021 financial results.

Growing Profit Margin: BKNG's current net profit margins (5.8%) are lower than last year (22.5%).


Past Earnings Growth Analysis

Earnings Trend: BKNG's earnings have declined by 7.1% per year over the past 5 years.

Accelerating Growth: BKNG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BKNG had negative earnings growth (-83.7%) over the past year, making it difficult to compare to the Hospitality industry average (95.3%).


Return on Equity

High ROE: BKNG's Return on Equity (8.6%) is considered low.


Financial Health

How is Booking Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BKNG's short term assets ($13.8B) exceed its short term liabilities ($6.7B).

Long Term Liabilities: BKNG's short term assets ($13.8B) exceed its long term liabilities ($12.4B).


Debt to Equity History and Analysis

Debt Level: BKNG's debt to equity ratio (253.6%) is considered high.

Reducing Debt: BKNG's debt to equity ratio has increased from 78.2% to 253.6% over the past 5 years.

Debt Coverage: BKNG's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: BKNG's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet


Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BKNG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Glenn Fogel (59 yo)

4.67yrs

Tenure

US$7,148,598

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 ($USD7.15M) is below average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Glenn's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BKNG's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: BKNG's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Booking Holdings Inc.'s company bio, 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
  • Market Cap: US$95.479b
  • Shares outstanding: 41.06m
  • Website: https://www.bookingholdings.com

Number of Employees


Location

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

Listings


Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:10
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.