Airbnb, Inc. (ABNB) Stock Analysis
Airbnb, Inc. (ABNB) Stock Analysis
Analysis from 10-Q filed 2025-11-06. Data as of Q4 2025.
Overall Grade: F (Concerning)
Airbnb, Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 20.1% | Above industry average |
| FCF Margin | 38.0% | Strong cash generation |
| Debt/Equity | 0.2x | Conservative leverage |
Investment Thesis: Strong return on invested capital of 20.1% suggests durable competitive advantages and efficient capital allocation.
Explore Airbnb, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Airbnb, Inc. earns 20.1% ROIC, Top 25% in Technology
Airbnb, Inc.'s trailing-twelve-month ROIC of 20.1% ranks Top 25% in Technology companies (sector median: 5.2%), driven by NOPAT margin of 16.6% combined with asset turnover of 0.5x. Source: 10-Q filed 2025-11-06. Gross margin of 83.0% with operating margin at 20.8% reflects strong pricing power.
| Metric | ABNB | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 20.1% | Excellent | Above sector median of 5.2% |
| Return on Equity (ROE) | 30.8% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 83.0% | Excellent | Strong pricing power |
| Operating Margin | 20.8% | Excellent | Efficient operations |
Cash Flow: Airbnb, Inc. generates $4.6B FCF at 38.0% margin, positive NaN/8 quarters
Airbnb, Inc. generated $4.6B in free cash flow (TTM), a 38.0% FCF margin, a margin that ranks Top 5% in Technology. Operating cash flow exceeds net income by 1.9x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-06.
| Metric | ABNB | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 38.0% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $4.6B | Good | Positive cash generation |
| OCF/Net Income | 1.9x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Airbnb, Inc. at 0.2x leverage
Airbnb, Inc.'s debt-to-equity ratio of 0.2x reflects conservative leverage. Net cash position of $15.9B provides financial flexibility. Source: 10-Q filed 2025-11-06.
| Metric | ABNB | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.2x | Excellent | Conservative capital structure |
| Net Cash Position | $15.9B | Excellent | Net cash positive |
Valuation: Airbnb, Inc. trades at 33.1x earnings
Airbnb, Inc. trades at a P/E of 33.1x. Free cash flow yield of 5.6% offers attractive cash returns relative to price.
| Metric | ABNB | Rating | Context |
|---|---|---|---|
| P/E Ratio | 33.1x | Adequate | Premium valuation |
| EV/Sales | 5.3x | Adequate | Growth premium priced in |
| FCF Yield | 5.6% | Good | Attractive cash return |
Capital Allocation: Airbnb, Inc. returns 4.6% shareholder yield
Airbnb, Inc.'s total shareholder yield is 4.6% (dividends + buybacks 4.6%). Source: 10-Q filed 2025-11-06.
| Metric | ABNB | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 4.6% | Good | Dividend + buyback yield combined |
| Buyback Yield | 4.6% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $3.8B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 20.1% | Top 25% | 3.8x above |
| Free Cash Flow Margin | 38.0% | Top 5% | 4.2x above |
| Gross Margin | 83.0% | Top 25% | 1.6x above |
| Operating Margin | 20.8% | Top 25% | 4.3x above |
| Return on Equity (ROE) | 30.8% | Top 25% | 6.3x above |
| P/E Ratio | 33.1x | N/A | - |
Financial Scorecard
| Metric | ABNB | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 20.1% | Excellent | Top 25% of sector (median: 5.2%) |
| Free Cash Flow Margin | 38.0% | Excellent | Top 5% of sector (median: 9.1%) |
| Gross Margin | 83.0% | Excellent | Top 25% of sector (median: 51.8%) |
| Debt to Equity Ratio | 24.4% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 33.1x | Adequate | Growth premium |
| Free Cash Flow Yield | 5.6% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is Airbnb, Inc.'s Return on Invested Capital (ROIC)?
Airbnb, Inc. (ABNB) has a trailing twelve-month Return on Invested Capital (ROIC) of 20.1%. This compares above the sector median of 5.2%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is Airbnb, Inc.'s Free Cash Flow Margin?
Airbnb, Inc. (ABNB) has a free cash flow margin of 38.0%, generating $4.6 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is Airbnb, Inc. stock overvalued or undervalued?
Airbnb, Inc. (ABNB) trades at a P/E ratio of 33.1x, which is above the sector median of N/A. The EV/Sales multiple is 5.3x. Free cash flow yield is 5.6%, which is in line with market averages.
Q: What is Airbnb, Inc.'s revenue and earnings growth?
Airbnb, Inc. (ABNB) grew revenue by 10.3% year-over-year. Earnings per share decreased by 1.8% compared to the prior year. Solid growth above 10% suggests healthy business momentum.
Q: Is Airbnb, Inc. buying back stock?
Airbnb, Inc. (ABNB) repurchased $3.8 billion of stock over the trailing twelve months. This represents a buyback yield of 4.6%.
Q: How does Airbnb, Inc. compare to competitors in Technology?
Compared to other companies in Technology, Airbnb, Inc. (ABNB) shows: ROIC of 20.1% is above the sector median of 5.2% (Top 19%). FCF margin of 38.0% exceeds the sector median of 9.1% (Top 2% of sector). Gross margin at 83.0% is 31.1 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with Airbnb, Inc.?
Airbnb, Inc. (ABNB) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.