DESPEGAR.COM CORP (DESP) Stock Fundamental Analysis
NYSE:DESP - New York Stock Exchange, Inc. - VGG273581030 - Common Stock - Currency: USD
Overall DESP gets a fundamental rating of 4 out of 10. We evaluated DESP against 135 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DESP had positive earnings in the past year.
DESP had a positive operating cash flow in the past year.
In the past 5 years DESP always reported negative net income.
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
With a Return On Assets value of 1.04%, DESP perfoms like the industry average, outperforming 41.98% of the companies in the same industry.
With a decent Return On Equity value of 14.99%, DESP is doing good in the industry, outperforming 73.28% of the companies in the same industry.
DESP has a better Return On Invested Capital (32.56%) than 96.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 14.99% | ||
| ROIC | 32.56% |
ROA(3y)-7.32%
ROA(5y)-8.31%
ROE(3y)-87.64%
ROE(5y)-67.02%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 1.22%, DESP is in line with its industry, outperforming 40.46% of the companies in the same industry.
The Operating Margin of DESP (12.77%) is better than 60.31% of its industry peers.
In the last couple of years the Operating Margin of DESP has remained more or less at the same level.
DESP's Gross Margin of 70.08% is amongst the best of the industry. DESP outperforms 83.21% of its industry peers.
DESP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.77% | ||
| PM (TTM) | 1.22% | ||
| GM | 70.08% |
OM growth 3YN/A
OM growth 5Y1.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.66%
GM growth 5Y0%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DESP is creating value.
Compared to 1 year ago, DESP has more shares outstanding
Compared to 5 years ago, DESP has more shares outstanding
DESP has a better debt/assets ratio than last year.
2.2 Solvency
DESP has an Altman-Z score of 1.32. This is a bad value and indicates that DESP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.32, DESP is in line with its industry, outperforming 43.51% of the companies in the same industry.
DESP has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.81, DESP belongs to the best of the industry, outperforming 90.84% of the companies in the same industry.
DESP has a Debt/Equity ratio of 0.52. This is a neutral value indicating DESP is somewhat dependend on debt financing.
DESP's Debt to Equity ratio of 0.52 is fine compared to the rest of the industry. DESP outperforms 70.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 1.32 |
ROIC/WACC2.79
WACC11.69%
2.3 Liquidity
DESP has a Current Ratio of 0.83. This is a bad value and indicates that DESP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of DESP (0.83) is comparable to the rest of the industry.
DESP has a Quick Ratio of 0.83. 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 Quick ratio (0.83) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 207.69% over the past year.
DESP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.75%.
Measured over the past years, DESP shows a small growth in Revenue. The Revenue has been growing by 5.88% on average per year.
EPS 1Y (TTM)207.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%118.18%
Revenue 1Y (TTM)16.75%
Revenue growth 3Y75.19%
Revenue growth 5Y5.88%
Sales Q2Q%8.86%
3.2 Future
The Earnings Per Share is expected to grow by 126.90% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.05% on average over the next years. This is quite good.
EPS Next Y1647.01%
EPS Next 2Y412.85%
EPS Next 3Y227.16%
EPS Next 5Y126.9%
Revenue Next Year10.45%
Revenue Next 2Y9.67%
Revenue Next 3Y10.55%
Revenue Next 5Y11.05%
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
With a Price/Earnings ratio of 68.86, DESP can be considered very expensive at the moment.
DESP's Price/Earnings is on the same level as the industry average.
DESP is valuated expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.83 indicates a rather expensive valuation of DESP.
Based on the Price/Forward Earnings ratio, DESP is valued a bit cheaper than the industry average as 64.89% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DESP to the average of the S&P500 Index (22.68), we can say DESP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.86 | ||
| Fwd PE | 19.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DESP is valued a bit cheaper than 67.94% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as DESP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.92 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
DESP's 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 227.16% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y412.85%
EPS Next 3Y227.16%
5. Dividend
5.1 Amount
DESP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.28
-0.07 (-0.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners70.89%
Inst Owner Change2.08%
Ins Owners1.89%
Ins Owner ChangeN/A
Market Cap1.61B
Analysts78
Price Target21.93 (13.74%)
Short Float %1.65%
Short Ratio0.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP275.33%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.77%
Min EPS beat(2)-5.5%
Max EPS beat(2)31.04%
EPS beat(4)1
Avg EPS beat(4)-93.86%
Min EPS beat(4)-254.06%
Max EPS beat(4)31.04%
EPS beat(8)2
Avg EPS beat(8)-180.45%
EPS beat(12)2
Avg EPS beat(12)-152.19%
EPS beat(16)2
Avg EPS beat(16)-124.4%
Revenue beat(2)0
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)-0.76%
Revenue beat(4)2
Avg Revenue beat(4)1.36%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)4.3%
Revenue beat(8)4
Avg Revenue beat(8)0.63%
Revenue beat(12)8
Avg Revenue beat(12)2.81%
Revenue beat(16)10
Avg Revenue beat(16)4.34%
PT rev (1m)13.16%
PT rev (3m)19.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-5.36%
EPS NY rev (3m)-15.53%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.86 | ||
| Fwd PE | 19.83 | ||
| P/S | 2.18 | ||
| P/FCF | 41.92 | ||
| P/OCF | 20.44 | ||
| P/B | 26.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.47 |
EPS(TTM)0.28
EY1.45%
EPS(NY)0.97
Fwd EY5.04%
FCF(TTM)0.46
FCFY2.39%
OCF(TTM)0.94
OCFY4.89%
SpS8.86
BVpS0.72
TBVpS-1.99
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 14.99% | ||
| ROCE | 41.49% | ||
| ROIC | 32.56% | ||
| ROICexc | 101.04% | ||
| ROICexgc | N/A | ||
| OM | 12.77% | ||
| PM (TTM) | 1.22% | ||
| GM | 70.08% | ||
| FCFM | 5.19% |
ROA(3y)-7.32%
ROA(5y)-8.31%
ROE(3y)-87.64%
ROE(5y)-67.02%
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5Y15.53%
OM growth 3YN/A
OM growth 5Y1.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.66%
GM growth 5Y0%
F-Score8
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | 94.15% | ||
| Cap/Sales | 5.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.37% | ||
| Profit Quality | 427.36% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.32 |
F-Score8
WACC11.69%
ROIC/WACC2.79
Cap/Depr(3y)74.17%
Cap/Depr(5y)77.94%
Cap/Sales(3y)6.02%
Cap/Sales(5y)7.44%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)207.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%118.18%
EPS Next Y1647.01%
EPS Next 2Y412.85%
EPS Next 3Y227.16%
EPS Next 5Y126.9%
Revenue 1Y (TTM)16.75%
Revenue growth 3Y75.19%
Revenue growth 5Y5.88%
Sales Q2Q%8.86%
Revenue Next Year10.45%
Revenue Next 2Y9.67%
Revenue Next 3Y10.55%
Revenue Next 5Y11.05%
EBIT growth 1Y205.97%
EBIT growth 3YN/A
EBIT growth 5Y7.35%
EBIT Next Year161.62%
EBIT Next 3Y49.68%
EBIT Next 5Y36.13%
FCF growth 1Y279.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2356.88%
OCF growth 3YN/A
OCF growth 5YN/A