Booking Holdings Inc (BKNG, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With its shares currently priced at $3,670.21, Booking Holdings Inc has enjoyed a daily gain of 5.68%, and a three-month change of 3.8%. A detailed analysis, underscored 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 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. Booking Holdings Inc boasts a GF Score of 93 out of 100, indicating a high potential for outperformance.
Understanding Booking Holdings Inc's Business
Booking Holdings Inc, with a market cap of $124.86 billion and annual sales of $21.37 billion, is the world's largest online travel agency by sales. The company provides a variety of services including hotel and alternative accommodation bookings, airline tickets, rental cars, and restaurant reservations through its various brands like Booking.com, Agoda, and OpenTable. The majority of its revenue and profits stem from transaction fees for online bookings.
Financial Strength Breakdown
Booking Holdings Inc's financial strength is evident in its robust balance sheet and impressive Interest Coverage ratio of 6.51, which significantly surpasses the benchmark set by Benjamin Graham. Additionally, its Altman Z-Score of 6.38 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.69 showcases prudent debt management.
Profitability and Growth Metrics
Booking Holdings Inc stands out with a Profitability Rank of 9/10, supported by a solid Piotroski F-Score. The company's commitment to growth is reflected in its 52.4% 3-Year Revenue Growth Rate, outperforming 89.37% of peers in the Travel & Leisure industry. This growth trajectory is further highlighted 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 effectively highlights the company's strong position for potential market outperformance. For investors looking for similar opportunities, the GF Score Screen offers a valuable tool for identifying other companies with strong GF Scores.
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.
