Booking Holdings Inc (BKNG, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With a current share price of $3,774.81, Booking Holdings Inc has experienced a daily gain of 0.98%, despite a slight three-month decline of -1.11%. A detailed analysis, supported by the GF Score, indicates that Booking Holdings Inc is poised for significant 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 ranging 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: 7/10
- Momentum rank: 10/10
Understanding Booking Holdings Inc's Business
Booking Holdings Inc, with a market cap of $126.55 billion and annual sales of $22.4 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, underscore its dominant position in the travel industry.
Financial Strength and Profitability
Booking Holdings Inc's financial resilience is evident in its Interest Coverage ratio of 6.73 and an Altman Z-Score of 5.7, indicating a low risk of financial distress. The company's strategic debt management is reflected in its Debt-to-Revenue ratio of 0.77. These metrics not only demonstrate strong financial health but also align with the principles of prudent investment.
Growth Trajectory
Booking Holdings Inc's commitment to growth is evident from its impressive 3-Year Revenue Growth Rate of 52.4%, which surpasses 81.65% of its peers in the Travel & Leisure industry. The company's EBITDA has also seen significant growth, with a three-year growth rate of 71.8. These figures highlight Booking Holdings Inc's effective expansion strategies and operational efficiency.
Conclusion
Considering Booking Holdings Inc's robust financial strength, high profitability, and impressive growth metrics, the GF Score underscores the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore other high-scoring companies using the GF Score Screen available to GuruFocus Premium members.
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.
