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%)
DESP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. DESP has an average financial health and profitability rating. 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.
DESP had a positive operating cash flow in the past year.
DESP had negative earnings in each of the past 5 years.
In multiple years DESP reported negative operating cash flow during the last 5 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.
DESP has a Return On Equity (-5.89%) which is in line with its industry peers.
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 has a Operating Margin of 16.02%. This is in the better half of the industry: DESP outperforms 70.37% of its industry peers.
DESP has a Gross Margin of 73.11%. This is amongst the best in the industry. DESP outperforms 90.37% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DESP is creating value.
Compared to 1 year ago, DESP has more shares outstanding
Compared to 5 years ago, DESP has more shares outstanding
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's Altman-Z score of 1.39 is in line compared to the rest of the industry. DESP outperforms 46.67% of its industry peers.
The Debt to FCF ratio of DESP is 1.72, which is an excellent value as it means it would take DESP, only 1.72 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.72, DESP belongs to the top 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.
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.
Even though the debt/equity ratio score it not favorable for DESP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| 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 comparable to the rest of the industry.
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.
DESP has a Quick ratio (0.85) which is comparable to the rest of the 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.
Looking at the last year, DESP shows a quite strong growth in Revenue. The Revenue has grown by 9.65% in the last year.
The Revenue has been growing by 8.08% on average over the past years. This is quite good.
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
Based on estimates for the next years, DESP will show a very strong growth in Earnings Per Share. The EPS will grow by 74.28% on average per year.
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
A Price/Earnings ratio of 114.71 indicates a quite expensive valuation of DESP.
Based on the Price/Earnings ratio, DESP is valued a bit more expensive than 61.48% of the companies in the same industry.
DESP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.29.
The Price/Forward Earnings ratio is 20.06, which indicates a rather expensive current valuation of DESP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DESP is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.85. DESP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.71 | ||
| Fwd PE | 20.06 |
4.2 Price Multiples
DESP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DESP is cheaper than 82.22% 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 | 55.63 | ||
| EV/EBITDA | 7.46 |
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 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 Change0%
Ins Owners1.89%
Ins Owner ChangeN/A
Market Cap1.63B
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
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
ROICexcg growth 3YN/A
ROICexcg 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%