Despegar com Corp (DESP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DESP - VGG273581030 - Common Stock
19.5 USD
+0.03 (+0.15%)
19.5 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to DESP. DESP was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. DESP has only an average score on both its financial health and profitability. DESP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year DESP was profitable.
DESP had a positive operating cash flow in the past year.
DESP had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: DESP reported negative operating cash flow in multiple years.
1.2 Ratios
DESP has a Return On Assets of -0.31%. This is in the lower half of the industry: DESP underperforms 63.70% of its industry peers.
The Return On Equity of DESP (-5.89%) is comparable to the rest of the industry.
DESP has a better Return On Invested Capital (41.42%) than 97.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.31% | ||
| ROE | -5.89% | ||
| ROIC | 41.42% |
ROA(3y)-3.19%
ROA(5y)-7.85%
ROE(3y)-61.6%
ROE(5y)-66.05%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DESP's Operating Margin of 16.02% is fine compared to the rest of the industry. DESP outperforms 70.37% of its industry peers.
The Gross Margin of DESP (73.11%) is better than 90.37% of its industry peers.
In the last couple of years the Gross Margin of DESP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.02% | ||
| PM (TTM) | N/A | ||
| GM | 73.11% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.49%
GM growth 5Y2.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DESP is creating value.
The number of shares outstanding for DESP has been increased compared to 1 year ago.
The number of shares outstanding for DESP has been increased compared to 5 years ago.
The debt/assets ratio for DESP is higher compared to a year ago.
2.2 Solvency
DESP has an Altman-Z score of 1.39. This is a bad value and indicates that DESP is not financially healthy and even has some risk of bankruptcy.
DESP has a Altman-Z score (1.39) which is in line with its industry peers.
DESP has a debt to FCF ratio of 1.72. This is a very positive value and a sign of high solvency as it would only need 1.72 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.72, DESP belongs to the best of the industry, outperforming 85.93% of the companies in the same industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that DESP has dependencies on debt financing.
The Debt to Equity ratio of DESP (1.06) is better than 62.22% of its industry peers.
Although DESP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 1.39 |
ROIC/WACC3.76
WACC11.03%
2.3 Liquidity
DESP has a Current Ratio of 0.85. This is a bad value and indicates that DESP is not financially healthy enough and could expect problems in meeting its short term obligations.
DESP has a Current ratio of 0.85. This is comparable to the rest of the industry: DESP outperforms 46.67% of its industry peers.
DESP has a Quick Ratio of 0.85. This is a bad value and indicates that DESP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.85, DESP is in line with its industry, outperforming 50.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 525.00% over the past year.
DESP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.65%.
DESP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.08% yearly.
EPS 1Y (TTM)525%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-137.5%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y33.85%
Revenue growth 5Y8.08%
Sales Q2Q%8.72%
3.2 Future
The Earnings Per Share is expected to grow by 74.28% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.38% on average over the next years. This is quite good.
EPS Next Y471.8%
EPS Next 2Y177.09%
EPS Next 3Y129.7%
EPS Next 5Y74.28%
Revenue Next Year8.9%
Revenue Next 2Y9.86%
Revenue Next 3Y10.79%
Revenue Next 5Y11.38%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 114.71, DESP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of DESP indicates a slightly more expensive valuation: DESP is more expensive than 61.48% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. DESP is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 20.06, DESP is valued on the expensive side.
DESP's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, DESP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.71 | ||
| Fwd PE | 20.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DESP is valued cheaper than 82.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DESP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.63 | ||
| EV/EBITDA | 7.46 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DESP's earnings are expected to grow with 129.70% in the coming years.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y177.09%
EPS Next 3Y129.7%
5. Dividend
5.1 Amount
DESP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.5
+0.03 (+0.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners70.89%
Inst Owner Change-11.36%
Ins Owners1.89%
Ins Owner ChangeN/A
Market Cap1.63B
Revenue(TTM)774.06M
Net Income(TTM)-2.81M
Analysts76
Price Target21.29 (9.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.3
Dividend Growth(5Y)N/A
DP-835.54%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-123.59%
Min EPS beat(2)-157.73%
Max EPS beat(2)-89.46%
EPS beat(4)1
Avg EPS beat(4)-55.41%
Min EPS beat(4)-157.73%
Max EPS beat(4)31.04%
EPS beat(8)2
Avg EPS beat(8)-174.31%
EPS beat(12)2
Avg EPS beat(12)-163.57%
EPS beat(16)2
Avg EPS beat(16)-136.75%
Revenue beat(2)2
Avg Revenue beat(2)1.18%
Min Revenue beat(2)0.15%
Max Revenue beat(2)2.2%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)2.2%
Revenue beat(8)5
Avg Revenue beat(8)1.22%
Revenue beat(12)8
Avg Revenue beat(12)1.31%
Revenue beat(16)11
Avg Revenue beat(16)2.42%
PT rev (1m)0%
PT rev (3m)-2.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.71 | ||
| Fwd PE | 20.06 | ||
| P/S | 2.11 | ||
| P/FCF | 55.63 | ||
| P/OCF | 24.65 | ||
| P/B | 34.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.46 |
EPS(TTM)0.17
EY0.87%
EPS(NY)0.97
Fwd EY4.98%
FCF(TTM)0.35
FCFY1.8%
OCF(TTM)0.79
OCFY4.06%
SpS9.26
BVpS0.57
TBVpS-1.93
PEG (NY)0.24
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.31% | ||
| ROE | -5.89% | ||
| ROCE | 60.25% | ||
| ROIC | 41.42% | ||
| ROICexc | 324.65% | ||
| ROICexgc | N/A | ||
| OM | 16.02% | ||
| PM (TTM) | N/A | ||
| GM | 73.11% | ||
| FCFM | 3.78% |
ROA(3y)-3.19%
ROA(5y)-7.85%
ROE(3y)-61.6%
ROE(5y)-66.05%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.49%
GM growth 5Y2.13%
F-Score6
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 1.72 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | 80.5% | ||
| Cap/Sales | 4.76% | ||
| Interest Coverage | 3.01 | ||
| Cash Conversion | 38.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.39 |
F-Score6
WACC11.03%
ROIC/WACC3.76
Cap/Depr(3y)83.13%
Cap/Depr(5y)71.17%
Cap/Sales(3y)5.42%
Cap/Sales(5y)7.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)525%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-137.5%
EPS Next Y471.8%
EPS Next 2Y177.09%
EPS Next 3Y129.7%
EPS Next 5Y74.28%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y33.85%
Revenue growth 5Y8.08%
Sales Q2Q%8.72%
Revenue Next Year8.9%
Revenue Next 2Y9.86%
Revenue Next 3Y10.79%
Revenue Next 5Y11.38%
EBIT growth 1Y89.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year50.8%
EBIT Next 3Y27.88%
EBIT Next 5Y22.13%
FCF growth 1Y-52.57%
FCF growth 3YN/A
FCF growth 5Y16.45%
OCF growth 1Y-35.64%
OCF growth 3YN/A
OCF growth 5Y8.37%
Despegar com Corp / DESP FAQ
Can you provide the ChartMill fundamental rating for Despegar com Corp?
ChartMill assigns a fundamental rating of 4 / 10 to DESP.
What is the valuation status for DESP stock?
ChartMill assigns a valuation rating of 4 / 10 to Despegar com Corp (DESP). This can be considered as Fairly Valued.
What is the profitability of DESP stock?
Despegar com Corp (DESP) has a profitability rating of 4 / 10.
How financially healthy is Despegar com Corp?
The financial health rating of Despegar com Corp (DESP) is 4 / 10.
Is the dividend of Despegar com Corp sustainable?
The dividend rating of Despegar com Corp (DESP) is 0 / 10 and the dividend payout ratio is -835.54%.