Booking Holdings Inc (BKNG, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. With a current share price of $4,217.81, Booking Holdings Inc has experienced a daily gain of 1.01% and a three-month increase of 5.92%. A detailed analysis, supported by the GF Score, indicates that Booking Holdings Inc is poised for significant growth in the foreseeable future.
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 92 out of 100, indicating a high potential for outperformance.
Understanding Booking Holdings Inc's Business
Booking Holdings Inc, with a market cap of $141.4 billion and annual sales of $22.4 billion, is the world's largest online travel agency by sales. The company provides a variety of booking and payment services across its platforms, including Booking.com, Agoda, and OpenTable. It has also expanded into travel media with acquisitions like Kayak and Momondo. The majority of its revenue and profits come from transaction fees for online bookings, supported by a robust operating margin of 28.38%.
Financial Strength Breakdown
Booking Holdings Inc's financial resilience is evident in its Financial Strength Rank of 6/10. The company boasts an Interest Coverage ratio of 6.73, significantly above Benjamin Graham's recommended threshold of 5, indicating strong capability to cover interest obligations. Additionally, its Altman Z-Score of 5.97 suggests low risk of financial distress. The strategic management of its debt-to-revenue ratio, which stands at 0.77, further solidifies its financial health.
Profitability and Growth Metrics
Booking Holdings Inc excels in profitability, with a Profitability Rank of 9/10. The company's financial health is also affirmed by a strong Piotroski F-Score. Growth metrics are equally impressive, with a Growth Rank of 9/10. The company's 3-Year Revenue Growth Rate of 52.4% outperforms 80.94% of peers in the Travel & Leisure industry. This is complemented by a significant increase in EBITDA over recent years, highlighting its capacity for sustained growth.
Conclusion
Considering Booking Holdings Inc's robust financial strength, impressive profitability, and strong growth metrics, the GF Score underscores the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through 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.
