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Booking Holdings (BKNG)
NASDAQ:BKNG
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Booking Holdings
(NASDAQ:BKNG)
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Rating:67Neutral
Price Target:
$5,906.00
▲(7.21% Upside)
Booking Holdings' strong earnings call performance and strategic initiatives are the most significant factors driving the score. However, financial risks from high leverage and negative equity, along with a high valuation, moderate the overall score. Technical indicators suggest a lack of strong momentum, adding to the cautious outlook.
Positive Factors
Revenue Growth
Consistent revenue growth demonstrates the company's ability to expand its market reach and product adoption, supporting long-term financial health.
Alternative Accommodations Expansion
Growth in alternative accommodations diversifies revenue streams and strengthens competitive positioning in the travel industry.
AI Integration
Advancements in AI enhance operational efficiency and customer experience, providing a sustainable competitive advantage.
Negative Factors
High Leverage
High leverage increases financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.
Challenges in U.S. Market
Slower growth in a key market like the U.S. can hinder overall revenue expansion and affect profitability.
Geopolitical Uncertainties
Geopolitical uncertainties can disrupt operations and market stability, affecting long-term strategic planning and growth.
Booking Holdings (BKNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$176.86B
Dividend Yield0.68%
Average Volume (3M)182.75K
Price to Earnings (P/E)37.9
Beta (1Y)1.12
Revenue Growth11.72%
EPS Growth0.51%
CountryUS
Employees24,500
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)55.40
Shares Outstanding32,409,885
10 Day Avg. Volume213,580
30 Day Avg. Volume182,751
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)-41.55
Price to Sales (P/S)7.04
P/FCF Ratio21.16
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue7.60
Enterprise Value/Gross Profit7.60
Enterprise Value/Ebitda22.16
Forecast
1Y Price Target
$6,107.70Price Target Upside10.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering25
Booking Holdings Business Overview & Revenue Model
Company DescriptionBooking Holdings Inc. provides travel and restaurant online reservation and related services worldwide. The company operates Booking.com, which offers online accommodation reservations; Rentalcars.com that provides online rental car reservation services; Priceline, which offer online travel reservation services, and consumers hotel, flight, and rental car reservation services, as well as vacation packages, cruises, and hotel distribution services. It also operates Agoda that provides online accommodation reservation services, as well as flight, ground transportation and activities reservation services. In addition, the company operates KAYAK, an online price comparison service that allows consumers to search and compare travel itineraries and prices, comprising airline ticket, accommodation reservation, and rental car reservation information; and OpenTable for booking online restaurant reservations. Further, it offers travel-related insurance products, and restaurant management services to consumers, travel service providers, and restaurants. The company was formerly known as The Priceline Group Inc. and changed its name to Booking Holdings Inc. in February 2018. The company was founded in 1997 and is headquartered in Norwalk, Connecticut.
How the Company Makes MoneyBooking Holdings generates revenue primarily through its online travel agency services, which include commissions from hotels and other accommodations, as well as service fees from travelers. The company earns a significant portion of its income from the commissions charged to hotel partners when travelers book through its platforms. Additionally, Booking Holdings generates revenue from advertising services, where partners pay to promote their listings on its websites. The company's vast network of partnerships with airlines, hotels, and car rental companies enhances its offerings and contributes to its earnings. Furthermore, its diversified portfolio across different regions and customer segments allows for a resilient revenue model that capitalizes on global travel demand.
Booking Holdings Key Performance Indicators (KPIs)
Any
Travel Bookings
Tracks the total number of travel reservations made, indicating consumer demand and market share within the travel industry.
Tracks the total number of travel reservations made, indicating consumer demand and market share within the travel industry.
Data provided by:
Main Street Data
Main Street DataBooking Holdings Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong financial performance and strategic advances, particularly in alternative accommodations and AI-driven initiatives, despite challenges in the U.S. market and geopolitical uncertainties.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Second quarter revenue grew 16% year-over-year, exceeding expectations. Adjusted EBITDA increased by 28% year-over-year, and adjusted EPS grew 32%.
Positive Room Night and Booking Growth
Room nights reached 309 million, an 8% increase from the previous year, with gross bookings up 13% and revenue up 16%.
Significant Growth in Alternative Accommodations
Alternative accommodation listings increased to 8.4 million, an 8% increase year-over-year, contributing to a 10% growth in room nights for this segment.
Expansion of Genius Loyalty Program
The Genius loyalty program continues to expand, with over 30% of active travelers in higher tiers, contributing significantly to booking frequency and direct bookings.
Connected Trip Vision Progress
Connected Trip transactions grew over 30% year-over-year, supported by strong growth in non-accommodation verticals like flights and attractions, with flight tickets up 44%.
Advancements in AI Integration
Investments in AI capabilities, including enhancements in Priceline's AI assistant Penny and OpenTable's AI Concierge, have improved customer engagement and service efficiencies.
Negative Updates
Challenges in the U.S. Market
The U.S. remains the slowest-growing region with lower ADRs, shorter booking windows, and indications of cautious consumer spending.
Geopolitical and Macroeconomic Uncertainties
There are ongoing challenges due to geopolitical dynamics and macroeconomic uncertainties, which have impacted June's growth by approximately 1%.
Difficulties in the China Market
Booking Holdings faces challenges in competing in China's domestic market and has adjusted expectations for outbound business from China.
Company Guidance
During the second quarter of 2025, Booking Holdings delivered robust financial results that surpassed expectations, driven by strong demand across its globally diversified business. Room nights grew by 8% year-over-year to 309 million, with notable performance in Europe and Asia, while gross bookings increased by 13% and revenue by 16%, both exceeding guidance. FX favorably impacted growth rates by approximately 4 percentage points. Adjusted EBITDA rose by 28%, reflecting disciplined expense management. The company reported adjusted EPS growth of 32% year-over-year. Strategic initiatives such as expanding alternative accommodations, with 8.4 million listings, and accelerating the Connected Trip vision contributed to a 10% growth in alternative accommodation room nights and over 30% growth in Connected Trip transactions. The Genius loyalty program now accounts for over 30% of active travelers. Additionally, non-accommodation verticals like flight tickets and attraction tickets saw significant growth, with flights up 44% and attractions more than doubling year-over-year. Looking ahead, the company expects room night growth of 3.5% to 5.5% in the third quarter, with gross bookings projected to rise between 8% and 10%. For the full year, guidance was raised, with expectations of low double-digit growth in gross bookings and revenue, and mid-teens growth in adjusted EBITDA.Booking Holdings Financial Statement Overview
Summary
Booking Holdings shows strong revenue growth and profitability, with efficient cash flow generation. However, the negative equity position and high leverage present significant financial risks, impacting the overall score.Income Statement
Booking Holdings has demonstrated strong revenue growth with a TTM increase of 3.9%. The company maintains robust profitability with a gross profit margin of 71.3% and a net profit margin of 19.2% in the TTM. However, there is a slight decline in net income compared to the previous year, which impacts the overall score.85
Very Positive
Balance Sheet
The balance sheet shows a concerning negative stockholders' equity, leading to a high debt-to-equity ratio of -2.85 in the TTM. This indicates significant leverage and potential financial risk. The return on equity is also negative, reflecting challenges in generating returns for shareholders.45
Neutral
Cash Flow
Cash flow analysis reveals a healthy free cash flow growth rate of 8.9% in the TTM. The operating cash flow to net income ratio is strong at 0.51, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also robust at 0.96, suggesting good cash conversion.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.02B | 23.74B | 21.36B | 17.09B | 10.96B | 6.80B |
| Gross Profit | 25.02B | 23.74B | 21.36B | 17.09B | 10.96B | 6.80B |
| EBITDA | 8.58B | 9.34B | 7.04B | 4.92B | 2.40B | 1.56B |
| Net Income | 4.81B | 5.88B | 4.29B | 3.06B | 1.17B | 59.00M |
Balance Sheet | ||||||
| Total Assets | 30.68B | 27.71B | 24.34B | 25.36B | 23.64B | 21.87B |
| Cash, Cash Equivalents and Short-Term Investments | 17.59B | 16.16B | 12.68B | 12.43B | 11.15B | 11.06B |
| Total Debt | 18.99B | 17.08B | 14.78B | 13.04B | 11.28B | 12.38B |
| Total Liabilities | 37.34B | 31.73B | 27.09B | 22.58B | 17.46B | 16.98B |
| Stockholders Equity | -6.66B | -4.02B | -2.74B | 2.78B | 6.18B | 4.89B |
Cash Flow | ||||||
| Free Cash Flow | 9.24B | 7.89B | 7.00B | 6.19B | 2.52B | -201.00M |
| Operating Cash Flow | 9.58B | 8.32B | 7.34B | 6.55B | 2.82B | 85.00M |
| Investing Cash Flow | -256.00M | 129.00M | 1.49B | -518.00M | -998.00M | 2.64B |
| Financing Cash Flow | -8.79B | -4.20B | -8.91B | -4.90B | -1.24B | 1.53B |
Booking Holdings Technical Analysis
Positive
5509.02
Price Trends
5555.78
Negative
5492.15
Positive
5140.83
Positive
Market Momentum
-23.63
Positive
48.82
Neutral
44.69
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 5509.02 is below the 20-day moving average (MA) of 5534.99, below the 50-day MA of 5555.78, and above the 200-day MA of 5140.83, indicating a neutral trend. The MACD of -23.63 indicates Positive momentum. The RSI at 48.82 is Neutral, neither overbought nor oversold. The STOCH value of 44.69 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | 77.95B | 29.80 | 33.73% | ― | 10.23% | -44.56% | |
73 Outperform | 50.71B | 21.53 | 11.97% | 0.37% | 17.73% | 27.95% | |
72 Outperform | 27.65B | 27.35 | 133.13% | 0.54% | 5.69% | 47.33% | |
67 Neutral | $176.86B | 37.87 | -146.32% | 0.68% | 11.72% | 0.51% | |
66 Neutral | 9.69B | 109.70 | 7.91% | ― | 18.13% | -55.21% | |
66 Neutral | 2.17B | 38.52 | 10.37% | ― | 3.03% | 187.03% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
BKNG
Booking Holdings
5,509.02
1,363.06
32.88%
TCOM
Trip.com Group Sponsored ADR
76.71
25.86
50.86%
EXPE
Expedia
221.22
76.66
53.03%
MMYT
Makemytrip
96.70
-10.14
-9.49%
TRIP
TripAdvisor
18.33
3.90
27.03%
ABNB
Airbnb
123.50
-7.21
-5.52%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.