Booking Holdings Inc (BKNG, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Despite a slight daily loss of 0.33%, the company's stock price stands at $4,028.92, reflecting a three-month gain of 1.64%. A detailed analysis, supported by the GF Score, indicates that Booking Holdings Inc is poised for significant growth, making it a compelling choice for investors.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, assessing stocks based on five key valuation aspects. This system has proven effective in predicting long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. Booking Holdings Inc boasts a GF Score of 93 out of 100, indicating a strong potential for market 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 $135.07 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, and car rentals through its various brands like Booking.com and Agoda. The company's operating margin stands at 28.38%, highlighting its efficiency in managing operations and profitability.
Financial Strength Breakdown
Booking Holdings Inc's financial strength is evident through its Interest Coverage ratio of 6.73 and an Altman Z-Score of 5.89, indicating low risk of financial distress. The company's strategic debt management is reflected in its Debt-to-Revenue ratio of 0.77, underscoring a balanced approach to leveraging and financial health.
Profitability and Growth Metrics
Booking Holdings Inc excels in profitability, as evidenced by its high Profitability Rank. The company's growth trajectory is also impressive, with a 3-Year Revenue Growth Rate of 52.4%, significantly outperforming the majority of its industry peers. This growth is supported by a strong increase in EBITDA, highlighting the company's ability to expand profitably.
Conclusion
Considering Booking Holdings Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score underscores the company's superior position for potential market outperformance. Investors looking for high-performing stocks may find Booking Holdings Inc an attractive option.
For more insights into companies with strong GF Scores, GuruFocus Premium members can explore our exclusive 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.
