Booking Holdings Inc. (BKNG) Stock Analysis
Booking Holdings Inc. (BKNG) Stock Analysis
Analysis from 10-Q filed 2025-10-28. Data as of Q4 2025.
Overall Grade: F (Concerning)
Booking Holdings Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 59.6% | Above industry average |
| FCF Margin | 33.8% | Strong cash generation |
| Debt/Equity | -3.4x | Conservative leverage |
Investment Thesis: Strong return on invested capital of 59.6% suggests durable competitive advantages and efficient capital allocation.
Explore Booking Holdings Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Booking Holdings Inc. earns 59.6% ROIC, Top 5% in Transportation
Booking Holdings Inc.'s trailing-twelve-month ROIC of 59.6% ranks Top 5% in Transportation companies (sector median: 6.7%), driven by NOPAT margin of 25.9% combined with asset turnover of 0.9x. Source: 10-Q filed 2025-10-28.
| Metric | BKNG | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 59.6% | Excellent | Above sector median of 6.7% |
| Return on Equity (ROE) | -96.9% | Red flag | Moderate equity returns |
| Operating Margin | 32.8% | Excellent | Efficient operations |
Cash Flow: Booking Holdings Inc. generates $9.1B FCF at 33.8% margin, positive NaN/8 quarters
Booking Holdings Inc. generated $9.1B in free cash flow (TTM), a 33.8% FCF margin, a margin that ranks Top 5% in Transportation. Operating cash flow exceeds net income by 1.7x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-28.
| Metric | BKNG | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 33.8% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $9.1B | Good | Positive cash generation |
| OCF/Net Income | 1.7x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Booking Holdings Inc. at -3.4x leverage
Booking Holdings Inc.'s debt-to-equity ratio of -3.4x reflects conservative leverage. Total debt of $18.7B offset by $17.3B in cash. Source: 10-Q filed 2025-10-28.
| Metric | BKNG | Rating | Context |
|---|---|---|---|
| Debt to Equity | -3.4x | Excellent | Conservative capital structure |
| Net Cash Position | $-1.5B | Warning | Net debt position |
Valuation: Booking Holdings Inc. trades at 32.1x earnings
Booking Holdings Inc. trades at a P/E of 32.1x. Free cash flow yield of 5.2% offers attractive cash returns relative to price.
| Metric | BKNG | Rating | Context |
|---|---|---|---|
| P/E Ratio | 32.1x | Adequate | Premium valuation |
| EV/Sales | 6.5x | Adequate | Growth premium priced in |
| FCF Yield | 5.2% | Good | Attractive cash return |
| Dividend Yield | 0.2% | Adequate | Growth focus over income |
Capital Allocation: Booking Holdings Inc. returns 3.9% shareholder yield
Booking Holdings Inc.'s total shareholder yield is 3.9% (dividends 0.2% + buybacks 3.7%). Source: 10-Q filed 2025-10-28.
| Metric | BKNG | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.9% | Good | Dividend + buyback yield combined |
| Buyback Yield | 3.7% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $7.7B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 59.6% | Top 5% | 8.9x above |
| Free Cash Flow Margin | 33.8% | Top 5% | 8.9x above |
| Operating Margin | 32.8% | Top 5% | 5.1x above |
| Return on Equity (ROE) | -96.9% | Bottom 10% | -9.3x below |
| P/E Ratio | 32.1x | N/A | - |
Financial Scorecard
| Metric | BKNG | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 59.6% | Excellent | Top 5% of sector (median: 6.7%) |
| Free Cash Flow Margin | 33.8% | Excellent | Top 5% of sector (median: 3.8%) |
| Debt to Equity Ratio | -335.9% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 32.1x | Adequate | Growth premium |
| Free Cash Flow Yield | 5.2% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is Booking Holdings Inc.'s Return on Invested Capital (ROIC)?
Booking Holdings Inc. (BKNG) has a trailing twelve-month Return on Invested Capital (ROIC) of 59.6%. This compares above the sector median of 6.7%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is Booking Holdings Inc.'s Free Cash Flow Margin?
Booking Holdings Inc. (BKNG) has a free cash flow margin of 33.8%, generating $9.1 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 Booking Holdings Inc. stock overvalued or undervalued?
Booking Holdings Inc. (BKNG) trades at a P/E ratio of 32.1x, which is above the sector median of N/A. The EV/Sales multiple is 6.5x. Free cash flow yield is 5.2%, which is in line with market averages.
Q: Does Booking Holdings Inc. pay a dividend?
Booking Holdings Inc. (BKNG) currently pays a dividend yield of 0.2%. Including share buybacks, the total shareholder yield is 3.9%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is Booking Holdings Inc.'s revenue and earnings growth?
Booking Holdings Inc. (BKNG) grew revenue by 13.4% year-over-year. Earnings per share decreased by 4.2% compared to the prior year. Solid growth above 10% suggests healthy business momentum.
Q: Is Booking Holdings Inc. buying back stock?
Booking Holdings Inc. (BKNG) repurchased $6.4 billion of stock over the trailing twelve months. This represents a buyback yield of 3.7%.
Q: How does Booking Holdings Inc. compare to competitors in Transportation?
Compared to other companies in Transportation, Booking Holdings Inc. (BKNG) shows: ROIC of 59.6% is above the sector median of 6.7% (Top 0%). FCF margin of 33.8% exceeds the sector median of 3.8% (Top 0% of sector). These rankings are based on MetricDuck's analysis of all Transportation companies with available SEC filings.
Q: What warning signs should I watch for with Booking Holdings Inc.?
Booking Holdings Inc. (BKNG) 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 2025-10-28. 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.