Booking Holdings Inc (BKNG, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With a current share price of $3,967.89 and a daily gain of 0.37%, coupled with a significant three-month increase of 15.24%, the company shows promising growth prospects. A detailed analysis, supported by the GF Score, indicates that Booking Holdings Inc is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently to calculate a comprehensive score that ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Booking Holdings Inc boasts a GF Score of 93, signaling strong future performance potential.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 6/10
- Momentum rank: 10/10
Understanding Booking Holdings Inc's Business
Booking Holdings Inc, with a market cap of $134.62 billion and annual sales of $22.00 billion, is the world's largest online travel agency by sales. The company provides a wide range of services, including hotel and alternative accommodation bookings, airline tickets, car rentals, and more, through well-known sites like Booking.com and Agoda. Its diverse service offerings and strategic acquisitions, such as Kayak and Momondo, have solidified its market leadership in the travel industry.
Financial Strength Breakdown
Booking Holdings Inc's financial resilience is evident in its robust balance sheet and impressive financial ratios. An Interest Coverage ratio of 6.7 and an Altman Z-Score of 5.95 highlight its ability to manage debt and avoid financial distress effectively. These metrics not only reflect strong financial health but also align with the principles of prudent financial management.
Profitability and Growth Metrics
Booking Holdings Inc stands out in the profitability and growth arenas as well. It ranks highly with a profitability score of 9/10, underscoring its efficiency in generating profits relative to its peers. The company's commitment to growth is demonstrated by a 52.4% three-year revenue growth rate, outperforming 83.33% of competitors in the Travel & Leisure industry. This sustained growth trajectory is further supported by significant increases in EBITDA over recent years.
Conclusion
Considering Booking Holdings Inc's strong financial strength, impressive profitability, and robust growth metrics, the GF Score highlights the company's unparalleled position for potential market outperformance. Investors looking for solid growth prospects in the travel and leisure sector might find Booking Holdings Inc an attractive option.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
