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 $3,882.19 and a daily gain of 2.22%, coupled with a three-month change of 2.13%, the company shows promising signs of substantial growth. A detailed analysis, supported by the GF Score, positions Booking Holdings Inc for significant future advancements.
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 and have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. For Booking Holdings Inc, the GF Score is an impressive 93 out of 100, indicating a high potential for outperformance.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 7/10
- Momentum rank: 8/10
Understanding Booking Holdings Inc's Business
Booking Holdings Inc, with a market cap of $130.15 billion and annual sales of $22.4 billion, is the world's largest online travel agency by sales. The company provides a vast array of services, including hotel and alternative accommodation bookings, airline tickets, car rentals, and more through its various brands like Booking.com, Agoda, and Kayak. The company's operating margin stands at 28.38%, with transaction fees for online bookings forming the core of its revenue and profits.
Financial Strength Breakdown
Booking Holdings Inc's financial strength is evident in its robust balance sheet and prudent capital management. The company's Interest Coverage ratio is a solid 6.73, indicating its ability to cover interest expenses comfortably. Furthermore, with an Altman Z-Score of 5.74, Booking Holdings Inc is well-protected against financial distress. The Debt-to-Revenue ratio of 0.77 further underscores its strategic debt management.
Profitability and Growth Metrics
Booking Holdings Inc's profitability is top-notch, as reflected in its high Profitability Rank. The company's Piotroski F-Score further confirms its healthy financial state. In terms of growth, Booking Holdings Inc has demonstrated a remarkable 3-Year Revenue Growth Rate of 52.4%, outperforming 81.52% of its peers in the Travel & Leisure industry. This growth is supported by a significant increase in EBITDA over recent years.
Conclusion
Considering Booking Holdings Inc's robust financial strength, impressive profitability, and sustained growth metrics, the GF Score highlights the company's unparalleled position for potential outperformance. For investors looking for similar opportunities, explore more companies with strong GF Scores using the GF Score Screen.
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.
