NasdaqGS:BKNG

Stock Analysis Report

Executive Summary

Booking Holdings Inc. provides online travel and related services in Europe, North America, South America, the Asia-Pacific region, the Middle East, and Africa.


Snowflake Analysis

Solid track record with adequate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

BKNG

-2.2%

US Online Retail

-1.1%

US Market


1 Year Return

1.0%

BKNG

22.7%

US Online Retail

17.9%

US Market

Return vs Industry: BKNG underperformed the US Online Retail industry which returned 22.7% over the past year.

Return vs Market: BKNG underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

BKNGIndustryMarket
7 Day-3.1%-2.2%-1.1%
30 Day-1.7%5.7%1.4%
90 Day1.6%15.3%6.9%
1 Year1.0%1.0%22.8%22.7%20.3%17.9%
3 Year18.2%18.2%104.9%104.6%47.8%38.3%
5 Year55.9%55.9%212.7%198.9%71.9%53.0%

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?

19.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BKNG ($1928.72) is trading above our estimate of fair value ($1904.64)

Significantly Below Fair Value: BKNG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BKNG is good value based on its PE Ratio (19.6x) compared to the Online Retail industry average (32.6x).

PE vs Market: BKNG is poor value based on its PE Ratio (19.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BKNG is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: BKNG is overvalued based on its PB Ratio (13.6x) compared to the US Online Retail industry average (3x).


Next Steps

Future Growth

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

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKNG's forecast earnings growth (5.1% per year) is above the savings rate (1.7%).

Earnings vs Market: BKNG's earnings (5.1% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: BKNG's earnings are forecast to grow, but not significantly.

Revenue vs Market: BKNG's revenue (6.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BKNG's revenue (6.9% 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 (148.2%).


Next Steps

Past Performance

How has Booking Holdings performed over the past 5 years?

12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKNG has high quality earnings.

Growing Profit Margin: BKNG's current net profit margins (29%) are higher than last year (19.8%).


Past Earnings Growth Analysis

Earnings Trend: BKNG's earnings have grown by 12.1% per year over the past 5 years.

Accelerating Growth: BKNG's earnings growth over the past year (55.2%) exceeds its 5-year average (12.1% per year).

Earnings vs Industry: BKNG earnings growth over the past year (55.2%) exceeded the Online Retail industry 15%.


Return on Equity

High ROE: Whilst BKNG's Return on Equity (72.93%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Booking Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BKNG's short term assets ($10.1B) exceed its short term liabilities ($5.5B).

Long Term Liabilities: BKNG's short term assets ($10.1B) exceed its long term liabilities ($10.0B).


Debt to Equity History and Analysis

Debt Level: BKNG's debt to equity ratio (142.7%) is considered high.

Reducing Debt: BKNG's debt to equity ratio has increased from 45% to 142.7% over the past 5 years.

Debt Coverage: BKNG's debt is well covered by operating cash flow (57.4%).

Interest Coverage: BKNG's interest payments on its debt are well covered by EBIT (48x coverage).


Balance Sheet

Inventory Level: BKNG has a low level of unsold assets or inventory.

Debt Coverage by Assets: BKNG's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry

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

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

3.1yrs

Average management tenure


CEO

Glenn Fogel (57yo)

3.1yrs

Tenure

US$20,459,184

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 The Priceline Group Inc. (alternatively Booking Holdin ...


CEO Compensation Analysis

Compensation vs Market: Glenn's total compensation ($USD20.46M) is above average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Glenn Fogel
President3.1yrsUS$20.46m0.063% $50.5m
David Goulden
Executive VP & CFO1.9yrsUS$14.31m0.0014% $1.1m
Peter Millones
Executive VP & General Counsel19.1yrsUS$6.43m0.017% $13.8m
Susana D'Emic
Senior VP0.8yrsno datano data
Michael Noonan
IR Contact0yrsno datano data
Anthony Cali
Senior Vice President0yrsno datano data
Brett Keller
Chief Executive Officer of Priceline.Com3.3yrsno datano data
Daniel Hafner
Chief Executive Officer of KAYAK + OpenTable0yrsno datano data
John Brown
Chief Executive Officer of Agoda2.1yrsno datano data
Pepijn Rijvers
Chief Marketing Officer of Booking.Com4.8yrsno datano data

3.1yrs

Average Tenure

51yo

Average Age

Experienced Management: BKNG's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Glenn Fogel
President3.1yrsUS$20.46m0.063% $50.5m
Charles Noski
Independent Director4.9yrsUS$365.73k0.0021% $1.7m
Jeffery Boyd
Non-Executive Chairman7.1yrsUS$491.40k0.14% $116.7m
James Guyette
Lead Independent Director7.1yrsUS$405.73k0.0065% $5.2m
Nancy Peretsman
Independent Director21yrsUS$335.73k0.0091% $7.4m
Mirian Graddick-Weir
Independent Director1.7yrsUS$307.42k0.000010% $8.1k
Thomas Rothman
Independent Director7.1yrsUS$341.43k0.0034% $2.8m
Robert Mylod
Independent Director2.8yrsUS$334.23k0.0021% $1.7m
Timothy Armstrong
Independent Director7.1yrsUS$340.73k0.0034% $2.8m
Lynn Vojvodich
Independent Director4.1yrsUS$335.73k0.0013% $1.0m

6.0yrs

Average Tenure

63yo

Average Age

Experienced Board: BKNG's board of directors are considered experienced (6 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: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$80.728b
  • Shares outstanding: 41.86m
  • 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
BKNG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1999
BKNGSNSE (Santiago Stock Exchange)YesCommon StockCLUSDMar 1999
BKNGSWX (SIX Swiss Exchange)YesCommon StockCHUSDMar 1999
0W2YLSE (London Stock Exchange)YesCommon StockGBUSDMar 1999
BOOKWBAG (Wiener Boerse AG)YesCommon StockATEURMar 1999
PCE1-UETLX (Eurotlx)YesCommon StockITEURMar 1999
BKNG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.04 COM USD0.008BRBRLMay 2019

Biography

Booking Holdings Inc. provides online travel and related services in Europe, North America, South America, the Asia-Pacific region, the Middle East, and Africa. The company operates Booking.com, which connects travelers with a selection of places to stay, including apartments, vacation homes, family-run B&Bs, 5-star luxury resorts, tree houses, and igloos; and KAYAK that searches other sites to show travelers the information they need to find the right flights, hotels, rental cars, and vacation packages. It also operates Priceline, an online travel deal service, which provides travelers to save on hotel rooms, airline tickets, rental cars, vacation packages, and cruises; Agoda, which provides online accommodation reservation services. In addition, the company operates Rentalcars.com that offers online rental car reservation services; and OpenTable, an online provider of restaurant reservation and information services to consumers and restaurant reservation management, as well as customer acquisition services to restaurants. Further, it offers travel insurance products. The company was formerly known as The Priceline Group Inc. and changed its name to Booking Holdings Inc. in February 2018. Booking Holdings Inc. was founded in 1997 and is headquartered in Norwalk, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:45
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.