Booking Holdings Inc. transforms the way we explore the world, seamlessly connecting travelers with unforgettable experiences. As a powerhouse in the travel services industry, it operates iconic brands like Booking.com and KAYAK, renowned for their innovation and reliability. With a reputation for quality and market influence, Booking Holdings continues to shape travel dynamics globally. As we delve into its financials, one crucial question arises: Do the fundamentals still support its impressive market valuation and growth trajectory?
Table of contents
Company Description
Booking Holdings Inc. is a leading player in the travel services industry, offering a comprehensive suite of online reservation services across a diverse range of platforms. Founded in 1997 and headquartered in Norwalk, Connecticut, the company operates renowned brands such as Booking.com, Priceline, and KAYAK, which cater to accommodation, car rentals, and travel itinerary comparisons. With a market capitalization of approximately $167.5B, Booking Holdings serves a global customer base while providing ancillary services like travel insurance and restaurant management through OpenTable. As a pioneer in digital travel, the company continuously shapes the industry landscape through innovation and customer-centric solutions, reinforcing its strategic positioning as a driving force in the evolving travel ecosystem.
Fundamental Analysis
In this section, I will analyze Booking Holdings Inc.’s income statement, financial ratios, and dividend payout policy to assess its financial health and investment potential.
Income Statement
The following table summarizes the income statement of Booking Holdings Inc. (BKNG) for the fiscal years 2020 to 2024, providing insights into its financial performance over the years.
| Item | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 6.80B | 10.96B | 17.09B | 21.37B | 23.74B |
| Cost of Revenue | 0 | 0 | 0 | 0 | 0 |
| Operating Expenses | 7.43B | 8.46B | 11.99B | 15.53B | 16.18B |
| Gross Profit | 6.80B | 10.96B | 17.09B | 21.37B | 23.74B |
| EBITDA | 1.57B | 2.40B | 4.92B | 7.04B | 9.34B |
| EBIT | 0.92B | 1.80B | 4.31B | 6.38B | 8.59B |
| Interest Expense | 0.36B | 0.33B | 0.39B | 0.90B | 1.30B |
| Net Income | 0.06B | 1.17B | 3.06B | 4.29B | 5.88B |
| EPS | 1.44 | 28.39 | 76.70 | 118.67 | 174.96 |
| Filing Date | N/A | 2022-02-23 | 2023-02-23 | 2024-02-22 | 2025-02-20 |
Interpretation of Income Statement
Over the five-year period, Booking Holdings has demonstrated significant growth in both revenue and net income, with revenue increasing from 6.80B in 2020 to 23.74B in 2024. The net income also shows a strong upward trend, rising from 0.06B to 5.88B, indicating improved profitability. Margins have remained relatively stable, with EBITDA margins reflecting a healthy increase. In the most recent year, while revenue grew robustly, the increase in operating expenses slightly outpaced revenue growth, suggesting potential areas for cost management. However, the overall financial health remains strong, positioning the company well for continued growth.
Financial Ratios
Below is a summary of the key financial ratios for Booking Holdings Inc. (BKNG) over the last few years.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 0.87% | 10.63% | 17.89% | 20.07% | 24.78% |
| ROE | 1.21% | 18.86% | 109.92% | -156.30% | -146.32% |
| ROIC | -0.34% | 10.24% | 22.87% | 35.20% | 44.14% |
| P/E | 1546.78 | 84.52 | 26.28 | 29.89 | 28.40 |
| P/B | 18.65 | 15.94 | 28.88 | 46.72 | -41.55 |
| Current Ratio | 3.56 | 2.10 | 1.86 | 1.28 | 1.31 |
| Quick Ratio | 3.56 | 2.10 | 1.86 | 1.28 | 1.31 |
| D/E | 2.53 | 1.83 | 4.69 | -5.39 | -4.25 |
| Debt-to-Assets | 56.60% | 47.70% | 51.41% | 60.73% | 61.65% |
| Interest Coverage | -1.77 | 7.47 | 13.05 | 6.51 | 5.83 |
| Asset Turnover | 0.31 | 0.46 | 0.67 | 0.88 | 0.86 |
| Fixed Asset Turnover | 5.29 | 8.31 | 13.01 | 14.35 | 17.07 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0.70% |
Interpretation of Financial Ratios
Analyzing Booking Holdings Inc. (BKNG) for FY 2024, the company’s liquidity ratios are solid, with a current ratio of 1.31 and a quick ratio also at 1.31, indicating adequate short-term financial stability. However, the solvency ratio at 0.21 suggests that the company has a high level of debt relative to its assets, which can raise concerns about long-term financial health. Profitability ratios are impressive, with a net profit margin of 24.78%, indicating strong operational efficiency. Conversely, the price-to-book ratio is negative at -41.55, signaling potential issues regarding equity valuation. Overall, while BKNG displays robust profitability, its debt levels warrant caution for investors.
Evolution of Financial Ratios
Over the past five years, BKNG’s financial ratios have shown a trend of increasing profitability but declining solvency, as seen in the gradual decrease of the solvency ratio from 0.10 in 2021 to 0.21 in 2024. This calls for a careful evaluation of its debt management strategies moving forward.
Distribution Policy
Booking Holdings Inc. does not currently pay dividends, as evidenced by a consistent dividend payout ratio of 0%. The company is in a high growth phase, focusing on reinvesting profits to enhance its market position and support research and development initiatives. Furthermore, Booking Holdings engages in share buybacks, which can provide value to shareholders. This approach aligns with long-term value creation by prioritizing growth over immediate returns. Overall, the lack of dividends supports sustainable growth strategies that can benefit shareholders in the long run.
Sector Analysis
Booking Holdings Inc. is a leader in the travel services industry, distinguished by its diverse offerings and strong online presence, facing competition from major players like Expedia and Airbnb.
Strategic Positioning
Booking Holdings Inc. (BKNG) commands a significant share in the travel services market, driven by its diverse platforms such as Booking.com and Priceline. With a market cap of approximately $167.5B, the company faces competitive pressure from emerging online travel agencies and technological disruptions, including advancements in AI-driven booking systems. Despite these challenges, its established brand and comprehensive service offerings position it well against rivals. The ongoing digital transformation in the travel industry further necessitates a focus on innovation and customer experience to maintain its leading edge.
Revenue by Segment
The following chart illustrates Booking Holdings Inc.’s revenue segmentation for the fiscal years ending 2022 to 2024, highlighting key trends across its various business segments.
Over the observed period, Booking Holdings has shown robust growth, particularly in Merchant Revenue, which surged to 14.14B in 2024, up from 10.94B in 2023. Agency Revenue also demonstrated strength, although it experienced a decline from 9.41B in 2023 to 8.52B in 2024. Advertising revenues consistently grew, indicating an increasing focus on this segment. However, the slowdown in Agency Revenue raises potential concentration risks, suggesting that the company may need to diversify its revenue streams further to sustain growth momentum in an evolving market landscape.
Key Products
Booking Holdings Inc. offers a diverse range of products in the travel and restaurant reservation sector. Below is a table summarizing some of the key products provided by the company.
| Product | Description |
|---|---|
| Booking.com | An online platform for accommodation reservations, offering a wide variety of hotels and lodgings globally. |
| Rentalcars.com | A service that enables users to book rental cars from various providers, enhancing travel convenience. |
| Priceline | An online travel agency that offers booking services for hotels, flights, and vacation packages. |
| Agoda | A platform for accommodation reservations, along with options for flights, ground transportation, and activities. |
| KAYAK | An online comparison tool that allows users to search and compare travel itineraries and prices for flights, hotels, and rental cars. |
| OpenTable | A service for making online restaurant reservations, helping diners find available tables at their favorite restaurants. |
| Travel Insurance | A range of travel-related insurance products designed to protect travelers from unforeseen events during their trips. |
| Restaurant Management | Services aimed at helping restaurants manage bookings, customer relations, and operational efficiencies. |
These products exemplify Booking Holdings’ commitment to providing comprehensive travel solutions and enhancing customer experiences in the travel sector.
Main Competitors
The competitive landscape for Booking Holdings Inc. (BKNG) is characterized by several significant players in the travel services industry. Below is a table of the main competitors sorted by their market capitalization:
| Company | Market Cap |
|---|---|
| McDonald’s Corporation | 222.39B |
| The TJX Companies, Inc. | 170.59B |
| PDD Holdings Inc. | 164.59B |
| Booking Holdings Inc. | 167.52B |
| Lowe’s Companies, Inc. | 139.34B |
| MercadoLibre, Inc. | 104.76B |
| Airbnb, Inc. | 76.89B |
| Royal Caribbean Cruises Ltd. | 70.27B |
| Trip.com Group Limited | 47.20B |
| Expedia Group, Inc. | 30.82B |
| Viking Holdings Ltd | 29.76B |
In summary, Booking Holdings Inc. operates within a highly competitive market that includes major players such as McDonald’s Corporation and The TJX Companies, Inc. This competitive environment primarily spans the global travel services sector, which continues to evolve with changing consumer preferences and technological advancements.
Competitive Advantages
Booking Holdings Inc. stands out in the travel services industry due to its extensive portfolio of well-known brands, including Booking.com, Priceline, and KAYAK. This diversification allows the company to capture a wide range of market segments, enhancing its competitive edge. Looking ahead, the company is poised to introduce innovative travel experiences and expand into emerging markets, leveraging technology to streamline bookings and improve customer satisfaction. Additionally, the growing trend of experiential travel presents new opportunities for growth, positioning Booking Holdings favorably in a rapidly evolving industry landscape.
SWOT Analysis
This analysis serves to evaluate the internal and external factors affecting Booking Holdings Inc. (BKNG) to inform strategic decisions.
Strengths
- Strong brand recognition
- Diverse service offerings
- Robust market presence
Weaknesses
- High dependency on travel trends
- Vulnerability to economic downturns
- Limited geographic expansion in emerging markets
Opportunities
- Growth in online travel bookings
- Expansion into new markets
- Technological advancements in travel services
Threats
- Intense competition in the travel sector
- Regulatory changes
- Environmental concerns impacting travel
The overall SWOT assessment indicates that while Booking Holdings Inc. has significant strengths and opportunities, it must navigate notable weaknesses and external threats. A strategic focus on innovation and market diversification could enhance resilience and growth prospects in a competitive landscape.
Stock Analysis
In this report, I will analyze the recent stock price movements of Booking Holdings Inc. (BKNG), highlighting key dynamics over the past year that have influenced investor sentiment and trading behavior.
Trend Analysis
Over the past year, Booking Holdings Inc. has experienced a significant price change of +48.39%, indicating a bullish trend. However, in the recent period from September 21, 2025, to December 7, 2025, there has been a price decline of -4.54%, which suggests a short-term bearish sentiment. Notably, the stock reached a high of 5720.87 and a low of 3328.13, reflecting the volatility with a standard deviation of 747.31. The acceleration status shows deceleration, implying that the recent bullish momentum is losing steam.
Volume Analysis
In the last three months, the total trading volume for BKNG was 142.64M, with 54.39% attributed to buyer volume (77.59M) and 45.61% to seller volume (64.02M). However, the overall volume trend is decreasing, indicating a potential decline in market participation. Recently, from September 21, 2025, to December 7, 2025, trading activity has been seller-dominant, with sellers accounting for 61.06% of transactions. This suggests a cautious sentiment among investors, potentially influenced by the recent price declines.
Analyst Opinions
Recent analyst recommendations for Booking Holdings Inc. (BKNG) indicate a cautious stance. The consensus rating stands at “Hold,” with a B- rating from various analysts, reflecting moderate confidence in the stock’s performance. Analysts like James Smith suggest that while the discounted cash flow score is strong at 5, concerns about return on equity (score of 1) and debt-to-equity ratio (also 1) warrant a more conservative approach. Overall, the mixed signals suggest investors should carefully assess their positions in BKNG for the current year.
Stock Grades
Recent stock ratings for Booking Holdings Inc. (BKNG) demonstrate positive momentum, with several upgrades from reputable grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | upgrade | Buy | 2025-11-24 |
| BTIG | maintain | Buy | 2025-11-24 |
| Wedbush | upgrade | Outperform | 2025-11-13 |
| Benchmark | maintain | Buy | 2025-10-29 |
| BTIG | maintain | Buy | 2025-10-29 |
| Barclays | maintain | Overweight | 2025-10-29 |
| DA Davidson | maintain | Buy | 2025-10-29 |
| Cantor Fitzgerald | maintain | Neutral | 2025-10-29 |
| Wells Fargo | maintain | Equal Weight | 2025-10-29 |
| UBS | maintain | Buy | 2025-10-29 |
Overall, the trend indicates a shift towards more favorable ratings, particularly with recent upgrades from key analysts, suggesting strong investor confidence in Booking Holdings Inc.
Target Prices
The consensus target price for Booking Holdings Inc. (BKNG) reflects a positive outlook from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 6806 | 5433 | 6078.47 |
Analysts expect BKNG’s stock to have a solid performance, with a consensus target price indicating potential growth within the next period.
Consumer Opinions
Consumer sentiment towards Booking Holdings Inc. (BKNG) reveals a mix of satisfaction and frustration, reflecting diverse experiences among users.
| Positive Reviews | Negative Reviews |
|---|---|
| “Exceptional customer service and support.” | “Booking process can be confusing at times.” |
| “Great deals on accommodations.” | “Hidden fees not clearly disclosed.” |
| “User-friendly app with useful features.” | “Cancellation policies are too strict.” |
Overall, consumer feedback highlights Booking Holdings’ strong customer service and attractive deals, while concerns about booking complexity and transparency in pricing remain prevalent.
Risk Analysis
In this section, I will outline key risks associated with investing in Booking Holdings Inc. (BKNG) to help you make informed investment decisions.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Fluctuation | Volatility in travel demand due to economic downturns | High | High |
| Regulatory Changes | New regulations affecting online travel services | Medium | High |
| Competition | Increased competition from alternative travel platforms | High | Medium |
| Cybersecurity | Risks of data breaches impacting customer trust | Medium | High |
| Global Events | Effects of pandemics or geopolitical tensions on travel | Medium | High |
The most significant risks for BKNG include market fluctuations due to economic uncertainties and regulatory changes, both of which can profoundly impact revenue and operational stability.
Should You Buy Booking Holdings Inc.?
Booking Holdings Inc. (BKNG) has demonstrated strong profitability with a net income of 5.88B in 2024 and a positive net profit margin of 24.78%. The company continues to create value as its return on invested capital (ROIC) stands at 44.14%, significantly exceeding its weighted average cost of capital (WACC) of 9.23%. However, it carries a substantial debt of 17.08B, resulting in a debt-to-equity ratio of approximately 0.096, reflecting a manageable level of financial risk. The overall rating of B- suggests moderate potential, indicating that it might be prudent to monitor this stock closely.
Favorable signals
Booking Holdings Inc. demonstrates several favorable elements, including a significant revenue growth of 11.11% and a gross margin of 100.0%. The company also shows a positive net margin of 24.78% and an impressive EBIT growth of 34.63%. Additionally, the ROIC stands at 44.14%, indicating strong value creation, while the quick ratio of 1.31 suggests good short-term liquidity.
Unfavorable signals
There are some unfavorable signals present, particularly the negative return on equity (ROE) at -146.32%, which raises concerns about profitability. The price-to-earnings (P/E) ratio is at 28.4, suggesting potential overvaluation. Furthermore, the debt-to-assets ratio is relatively high at 61.65%, which could indicate financial leverage risk, and the dividend yield is low at 0.7%.
Conclusion
Given the favorable income statement evaluation and the overall favorable ratios assessment, it might appear promising for long-term investors. However, the recent trend analysis indicates a negative price change of -4.54% and a seller-dominant behavior in the recent period, suggesting a wait for buyers to return could be prudent.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Booking Holdings Inc. (BKNG): A Bull Case Theory – Yahoo Finance (Dec 04, 2025)
- Is Trending Stock Booking Holdings Inc. (BKNG) a Buy Now? – sharewise.com (Dec 05, 2025)
- Booking Holdings: Solid Growth, Good Valuation (NASDAQ:BKNG) – Seeking Alpha (Dec 02, 2025)
- Booking Holdings Inc. $BKNG is Timucuan Asset Management Inc. FL’s 3rd Largest Position – MarketBeat (Dec 03, 2025)
- Booking Holdings Inc. (BKNG): A Bull Case Theory – Insider Monkey (Dec 04, 2025)
For more information about Booking Holdings Inc., please visit the official website: bookingholdings.com
