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Booking Holdings (BKNG)
NASDAQ:BKNG
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Booking Holdings
(NASDAQ:BKNG)
77Outperform
Positive Factors
AI and Operating Efficiency
BKNG's AI initiatives are driving sales growth and operating efficiency, contributing to significant increases in return on capital.
Financial Stability
BKNG's strong balance sheet and cash flow will drive ongoing investment in key growth initiatives, share repurchases, and its recently announced initial dividend.
Market Leadership
BKNG is best-positioned in the group as the market leader with significantly higher margins.
Negative Factors
Competitive Pressure
Intensifying competition as players such as Google are expanding into the travel booking space, adding competitive pressure to the industry.
Guidance and Valuation Concerns
The stock is tracking down 4% pre-market due to conservative guidance history.
Macroeconomic Uncertainty
Macroeconomic slowdown and uncertainty may impact discretionary spending on travel and could negatively impact travel service providers through fewer bookings and rates.
Booking Holdings (BKNG) vs. S&P 500 (SPY)
Market Cap
$173.02B
Dividend Yield0.67%
Average Volume (3M)285.73K
Price to Earnings (P/E)33.1
Beta (1Y)1.13
Revenue Growth9.47%
EPS Growth20.70%
CountryUS
Employees24,500
SectorConsumer Cyclical
Sector Strength74
IndustryTravel Services
Share Statistics
EPS (TTM)24.81
Shares Outstanding32,540,337
10 Day Avg. Volume206,950
30 Day Avg. Volume285,725
Financial Highlights & Ratios
PEG Ratio-4.28
Price to Book (P/B)-27.26
Price to Sales (P/S)0.00
P/FCF Ratio19.46
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue1.78
Enterprise Value/Gross Profit7.04
Enterprise Value/Ebitda5.02
Forecast
1Y Price Target
$5,483.72Price Target Upside3.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering33
Booking Holdings Business Overview & Revenue Model
Company DescriptionBooking Holdings Inc. is a leading provider of online travel and related services, operating globally across numerous travel sectors. With a portfolio of brands including Booking.com, Priceline, Agoda, Rentalcars.com, and Kayak, the company offers a wide range of services such as hotel reservations, car rentals, airline ticketing, and vacation packages. Booking Holdings leverages advanced technology to connect travelers with accommodations, transportation options, and travel experiences.
How the Company Makes MoneyBooking Holdings primarily generates revenue through the commissions and transaction fees charged to travel service providers, such as hotels, airlines, and car rental companies, for bookings made through its platforms. The company operates a merchant model where it acts as an intermediary, collecting payment from customers and remitting it to service providers, often at a margin. Additionally, Booking Holdings benefits from advertising revenue on its websites and apps, as well as from partnerships with other travel-related businesses. Key revenue streams include accommodation reservations, which form the bulk of its income, followed by transportation services and advertising sales. The company's earnings are further supported by strategic partnerships with various travel industry stakeholders, enhancing its market presence and customer reach.
Booking Holdings Key Performance Indicators (KPIs)
Any
Travel Bookings
Tracks the volume of travel reservations made through the platform, reflecting consumer travel trends and the company’s market share in the online travel industry.
Tracks the volume of travel reservations made through the platform, reflecting consumer travel trends and the company’s market share in the online travel industry.
Data provided by:
Main Street Data
Main Street DataBooking Holdings Financial Statement Overview
Summary
Booking Holdings shows solid revenue growth and operational efficiency, reflected in its high margins and cash flows. However, the negative equity position and high debt levels pose a risk to financial stability. Continuous monitoring of profitability and leverage is essential for maintaining financial health.Income Statement
Booking Holdings demonstrates strong financial performance with robust revenue growth and profitability metrics. The company has shown a consistent increase in total revenue, with a notable growth rate from 2022 to 2025. The TTM gross profit margin remains high, indicating efficient cost management. However, the decline in net income from 2024 to TTM suggests a need to monitor profitability amidst growing revenues.85
Very Positive
Balance Sheet
The balance sheet reflects a high level of debt, with a negative stockholders' equity indicating potential financial risk. The debt-to-equity ratio is concerning, but the company maintains a significant cash reserve, which could help mitigate leverage risks. The equity ratio is negative, highlighting the need for improved equity position to enhance financial stability.60
Neutral
Cash Flow
A strong operating cash flow indicates the company’s ability to generate cash from operations, supporting its liquidity position. The free cash flow shows healthy growth, ensuring the company can fund its operations and investments. However, high financing cash outflows require attention to ensure sustainable cash flow management.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 24.09B | 23.74B | 21.36B | 17.09B | 10.96B | 6.80B | Gross Profit |
| 23.57B | 22.99B | 21.36B | 16.48B | 10.36B | 6.15B | EBIT |
| 7.83B | 7.55B | 5.83B | 5.10B | 1.81B | 2.13B | EBITDA |
| 8.88B | 9.34B | 7.04B | 4.92B | 2.40B | 1.56B | Net Income Common Stockholders |
| 5.44B | 5.88B | 4.29B | 3.06B | 1.17B | 59.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 15.58B | 16.16B | 12.68B | 12.40B | 11.15B | 11.06B | Total Assets |
| 27.19B | 27.71B | 24.34B | 25.36B | 23.64B | 21.87B | Total Debt |
| 16.50B | 17.08B | 15.00B | 13.04B | 11.28B | 12.38B | Net Debt |
| 922.00M | 917.00M | 2.68B | 816.00M | 150.00M | 1.82B | Total Liabilities |
| 33.30B | 31.73B | 27.09B | 22.58B | 17.46B | 16.98B | Stockholders Equity |
| -6.11B | -4.02B | -2.74B | 2.78B | 6.18B | 4.89B |
| Cash Flow | Free Cash Flow | ||||
| 8.48B | 7.89B | 7.00B | 6.19B | 2.52B | -201.00M | Operating Cash Flow |
| 8.90B | 8.32B | 7.34B | 6.55B | 2.82B | 85.00M | Investing Cash Flow |
| -58.00M | 129.00M | 1.49B | -518.00M | -998.00M | 2.64B | Financing Cash Flow |
| -8.96B | -4.20B | -8.91B | -4.90B | -1.24B | 1.53B |
Booking Holdings Technical Analysis
Positive
5317.07
Price Trends
4737.39
Positive
4808.82
Positive
4573.28
Positive
Market Momentum
158.23
Negative
67.51
Neutral
79.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKNG, the sentiment is Positive. The current price of 5317.07 is above the 20-day moving average (MA) of 5032.61, above the 50-day MA of 4737.39, and above the 200-day MA of 4573.28, indicating a bullish trend. The MACD of 158.23 indicates Negative momentum. The RSI at 67.51 is Neutral, neither overbought nor oversold. The STOCH value of 79.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKNG.
Booking Holdings Risk Analysis
Booking Holdings disclosed 34 risk factors in its most recent earnings report. Booking Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Booking Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $86.44B | 34.72 | 32.06% | ― | 9.68% | -47.83% | |
77 Outperform | $173.02B | 33.08 | -146.32% | 0.67% | 9.47% | 20.70% | |
77 Outperform | $2.00B | 41.96 | 5.91% | ― | 1.43% | 121.44% | |
76 Outperform | $42.66B | 18.87 | 12.91% | 0.43% | 18.12% | 69.44% | |
75 Outperform | $21.19B | 19.63 | 119.16% | 0.24% | 5.57% | 61.19% | |
75 Outperform | $11.58B | 124.93 | 8.33% | ― | 28.51% | 367.34% | |
61 Neutral | $6.98B | 11.35 | 2.88% | 3.90% | 2.65% | -21.84% |
* Consumer Cyclical Sector Average
Performance Comparison
BKNG
Booking Holdings
5,317.07
1,579.67
42.27%
TCOM
Trip.com Group Sponsored ADR
64.97
8.18
14.40%
EXPE
Expedia
166.66
52.58
46.09%
MMYT
Makemytrip Limited
105.44
15.73
17.53%
TRIP
TripAdvisor
15.30
-3.15
-17.07%
ABNB
Airbnb
138.00
-8.37
-5.72%
Booking Holdings Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 8.31%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial results with record room nights and significant growth in various segments such as alternative accommodations and air tickets. However, concerns about geopolitical and macroeconomic conditions and specific market weaknesses, particularly in the US, were acknowledged. Overall, the positive achievements and growth metrics outweigh the challenges, pointing to a solid performance and promising strategy for future growth.Q1-2025 Updates
Positive Updates
Record Room Nights and Revenue Growth
Booking Holdings reported a record 319 million room nights, marking the first time exceeding 300 million in a single quarter. First quarter revenue grew by 8% year-over-year to $4.8 billion.
Strong Adjusted EBITDA and Earnings Growth
Adjusted EBITDA rose by 21% year-over-year to approximately $1.1 billion, and adjusted earnings per share increased by 22% year-over-year.
Alternative Accommodations and Genius Program Expansion
Alternative accommodations room nights grew 12% in Q1, and Genius loyalty program reached over 30% of active travelers in higher tiers.
Air Ticket and Attractions Growth
Booking Holdings saw a 45% year-over-year increase in air ticket bookings and a 92% increase in attractions ticket sales.
AI and Connected Trip Vision Advancements
Continued integration and testing of AI technologies across platforms with a 35% year-over-year growth in Connected Trip transactions.
Negative Updates
Geopolitical and Macroeconomic Concerns
Acknowledgement of rising geopolitical and macroeconomic concerns impacting global leisure travel demand.
US Market Weakness
Noted moderation in trends for inbound travel to the US and a decrease in length of stay within the US.
Company Guidance
In the first quarter of 2025, Booking Holdings reported impressive financial performance, with room nights reaching 319 million, the highest ever for a single quarter, representing a year-over-year growth of over 7%. The company's revenue climbed to $4.8 billion, marking an 8% increase year-over-year, while adjusted EBITDA rose by 21% to approximately $1.1 billion. Adjusted earnings per share saw a 22% increase. The company also highlighted robust growth in its alternative accommodations segment, with listings increasing by 9% to about 8.1 million and room night growth of 12%. Furthermore, the Connected Trip transactions grew by 35%, and air ticket sales soared by 45%, demonstrating strong performance across various verticals. Despite geopolitical and macroeconomic uncertainties, Booking Holdings remains confident in its long-term strategy, leveraging its global diversification and strong cash flow to navigate potential challenges.Booking Holdings Corporate Events
Private Placements and Financing
Booking Holdings Issues €1.75 Billion in Senior Notes
Neutral
May 9, 2025
On May 6, 2025, Booking Holdings Inc. executed an underwriting agreement with several major financial institutions to issue and sell €1,750,000,000 in Senior Notes as part of a registered public offering. This transaction, conducted under the company’s Registration Statement, included the issuance of three types of Senior Notes with varying maturity dates and interest rates. The issuance of these Senior Notes is a strategic financial move, potentially impacting the company’s capital structure and market positioning by providing additional liquidity and financial flexibility. The notes are unsecured obligations, and the company has appointed U.S. Bank Europe DAC, UK Branch, as the paying agent and U.S. Bank Trust Company, National Association as the transfer agent.
Spark’s Take on BKNG Stock
According to Spark, TipRanks’ AI Analyst, BKNG is a Outperform.
Booking Holdings’ robust revenue growth and strong operational performance are key strengths, despite high debt levels and a negative equity position. Positive technical indicators and optimistic earnings call results further support the stock’s potential. Valuation remains moderate, providing a balanced outlook.
To see Spark’s full report on BKNG stock, click here.
Executive/Board ChangesShareholder Meetings
Wei Hopeman Announces Retirement from Booking Holdings
Neutral
Apr 22, 2025
Wei Hopeman has announced her retirement from Booking Holdings Inc.’s Board of Directors, effective at the company’s Annual Meeting in June 2025. The company and its Board have expressed their gratitude for her dedicated service.
Spark’s Take on BKNG Stock
According to Spark, TipRanks’ AI Analyst, BKNG is a Outperform.
Booking Holdings demonstrates strong financial growth and profitability, supported by positive earnings call guidance. However, the negative equity on the balance sheet is a concern, and technical indicators suggest a cautious approach with potential downward price momentum. Valuation metrics indicate fair market pricing. Overall, the stock presents a balanced risk-reward scenario, with strengths in operational efficiency and strategic initiatives offset by financial structure risks.
To see Spark’s full report on BKNG stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.