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

Fundamentals

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


Market Performance


7 Day Return

3.3%

BKNG

3.2%

US Online Retail

1.8%

US Market


1 Year Return

12.0%

BKNG

9.1%

US Online Retail

7.3%

US Market

Return vs Industry: BKNG exceeded the US Online Retail industry which returned 9.1% over the past year.

Return vs Market: BKNG exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

BKNGIndustryMarket
7 Day3.3%3.2%1.8%
30 Day-2.4%-2.0%-0.7%
90 Day7.8%-4.4%0.06%
1 Year12.0%12.0%9.2%9.1%9.7%7.3%
3 Year38.2%38.2%81.6%81.4%46.3%36.9%
5 Year79.4%79.4%176.3%164.6%64.5%46.5%

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?

22.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BKNG ($2028.53) is trading above our estimate of fair value ($1761.66)

Significantly Undervalued: 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 (22.2x) compared to the Online Retail industry average (33.1x).

PE vs Market: BKNG is poor value based on its PE Ratio (22.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BKNG is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: BKNG is overvalued based on its PB Ratio (16.3x) compared to the US Online Retail industry average (2.5x).


Next Steps

Future Growth

How is Booking Holdings forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKNG's forecast earnings growth (7.6% per year) is above the savings rate (2.7%).

Earnings vs Market: BKNG's earnings (7.6% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: BKNG's revenue (8.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: BKNG's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BKNG's Return on Equity is forecast to be very high in 3 years time (133.3%).


Next Steps

Past Performance

How has Booking Holdings performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BKNG's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: BKNG's earnings growth over the past year (51.2%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: BKNG earnings growth over the past year (51.2%) exceeded the Online Retail industry -15.1%.


Return on Equity

High ROE: Whilst BKNG's Return on Equity (78.33%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: BKNG has a higher Return on Assets than the Online Retail industry average last year.


Return on Capital Employed

ROCE Improving: BKNG has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Booking Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BKNG's short term assets ($10.0B) exceeds its short term liabilities ($6.3B)

Long Term Liabilities: BKNG's short term assets (10.0B) exceeds its long term liabilities (9.8B)


Debt to Equity History and Analysis

Debt Level: BKNG's debt to equity ratio (163.2%) is considered high

Reducing Debt: BKNG's debt to equity ratio has increased from 23.4% to 163.2% over the past 5 years.

Debt Coverage: BKNG's debt is well covered by operating cash flow (57.6%).

Interest Coverage: BKNG's interest payments on its debt are well covered by EBIT (49.7x 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 1.156910x debt).


Next Steps

  • Explore more healthy companies in the Retail industry.

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Booking Holdings's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Glenn Fogel (57yo)

2.8yrs

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 ($USD20.46M) is about average for companies of similar size in the US market ($USD11.21M).

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


Management Age and Tenure

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: BKNG's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

63yo

Average Age

Experienced Board: BKNG's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • David Goulden (59yo)

    Executive VP & CFO

    • Tenure: 1.6yrs
    • Compensation: US$14.31m
  • Brett Keller (51yo)

    Chief Executive Officer of Priceline.Com

    • Tenure: 2.9yrs
  • Peter Millones (49yo)

    Executive VP & General Counsel

    • Tenure: 18.8yrs
    • Compensation: US$6.43m
  • Steve Hafner (50yo)

    Chief Executive Officer of KAYAK + OpenTable

    • Tenure: 0yrs
  • Anthony Cali (47yo)

    Senior Vice President

    • Tenure: 0yrs
  • Glenn Fogel (57yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$20.46m
  • Sue D’Emic (55yo)

    Senior VP

    • Tenure: 0.4yrs
  • Pepijn Rijvers

    Chief Marketing Officer of Booking.Com

    • Tenure: 4.5yrs
  • Michael Noonan

    IR Contact

    • Tenure: 0yrs
  • John Brown

    Chief Executive Officer of Agoda

    • Tenure: 1.8yrs

Board Members

  • Chuck Noski (66yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$365.73k
  • Jeff Boyd (62yo)

    Non-Executive Chairman

    • Tenure: 6.8yrs
    • Compensation: US$491.40k
  • Jim Guyette (74yo)

    Lead Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$405.73k
  • Nancy Peretsman (65yo)

    Independent Director

    • Tenure: 20.7yrs
    • Compensation: US$335.73k
  • Mirian Graddick-Weir (64yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$307.42k
  • Tom Rothman (64yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$341.43k
  • Bob Mylod (52yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$334.23k
  • Tim Armstrong (48yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$340.73k
  • Lynn Vojvodich (51yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$335.73k
  • Glenn Fogel (57yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$20.46m

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$86.237b
  • Shares outstanding: 42.51m
  • 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
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 conn ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:39
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.