Despegar com Corp (DESP) Stock Fundamental Analysis
USA - 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. Both the profitability and the financial health of DESP get a neutral evaluation. Nothing too spectacular is happening here. DESP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DESP was profitable.
In the past year DESP had a positive cash flow from operations.
In the past 5 years DESP always reported negative net income.
In multiple years DESP reported negative operating cash flow during the last 5 years.
1.2 Ratios
DESP has a worse Return On Assets (-0.31%) than 63.70% of its industry peers.
DESP's Return On Equity of -5.89% is in line compared to the rest of the industry. DESP outperforms 46.67% of its industry peers.
With an excellent Return On Invested Capital value of 41.42%, DESP belongs to the best of the industry, outperforming 97.04% of the companies in the same industry.
| 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 has a better Operating Margin (16.02%) than 70.37% of its industry peers.
Looking at the Gross Margin, with a value of 73.11%, DESP belongs to the top of the industry, outperforming 90.37% of the companies in the same industry.
DESP's Gross Margin has improved in the last couple of years.
| 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
DESP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, DESP has more shares outstanding
DESP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DESP is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that DESP is in the distress zone and has some risk of bankruptcy.
DESP has a Altman-Z score of 1.39. This is comparable to the rest of the industry: DESP outperforms 46.67% of 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.
DESP has a better Debt to FCF ratio (1.72) than 85.93% of its industry peers.
DESP has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.06, DESP is doing good in the industry, outperforming 62.22% of the companies in the same industry.
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
A Current Ratio of 0.85 indicates that DESP may have some problems paying its short term obligations.
DESP has a Current ratio (0.85) which is in line with its industry peers.
A Quick Ratio of 0.85 indicates that DESP may have some problems paying its short term obligations.
DESP's Quick ratio of 0.85 is in line compared to the rest of the industry. DESP outperforms 50.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
DESP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 525.00%, which is quite impressive.
The Revenue has grown by 9.65% in the past year. This is quite good.
Measured over the past years, DESP shows a quite strong growth in Revenue. The Revenue has been growing by 8.08% on average per year.
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
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 114.71 indicates a quite expensive valuation of DESP.
61.48% of the companies in the same industry are cheaper than DESP, based on the Price/Earnings ratio.
DESP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.19.
The Price/Forward Earnings ratio is 20.06, which indicates a rather expensive current valuation of DESP.
DESP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, 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 cheaply inside the industry as 82.22% of the companies are valued more expensively.
DESP's Price/Free Cash Flow is on the same level as the industry average.
| 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.
DESP's earnings are expected to grow with 129.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y177.09%
EPS Next 3Y129.7%
5. Dividend
5.1 Amount
No dividends for DESP!.
| 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 Change0%
Ins Owners1.89%
Ins Owner ChangeN/A
Market Cap1.63B
Revenue(TTM)774.06M
Net Income(TTM)-2805000
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%.