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 $3,723.11, the company has experienced a daily gain of 1.72%, despite a slight three-month decline of 0.63%. 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 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 $126.32 billion and annual sales of $22.00 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, and car rentals through its well-known brands such as Booking.com, Agoda, and Kayak. The company's operating margin stands at 28.07%, reflecting its efficient operational structure and substantial profitability.
Financial Strength Breakdown
Booking Holdings Inc's financial resilience is evident through its Interest Coverage ratio of 6.7 and an Altman Z-Score of 5.76, indicating a strong buffer against financial distress. The company's strategic debt management is highlighted by a Debt-to-Revenue ratio of 0.79, underscoring its prudent financial practices.
Profitability and Growth Metrics
Booking Holdings Inc excels in profitability, with a rank of 9/10. The company's growth trajectory is also impressive, demonstrated by a 52.4% 3-Year Revenue Growth Rate, outperforming 88.75% of peers in the Travel & Leisure industry. Furthermore, its EBITDA has grown significantly, with a three-year growth rate of 71.8%, showcasing its ability to expand profitably.
Conclusion
Considering Booking Holdings Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other 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.
