Despegar com Corp (DESP) Stock Fundamental Analysis
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 131 industry peers in the Hotels, Restaurants & Leisure industry. DESP has an average financial health and profitability rating. DESP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DESP had positive earnings in the past year.
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's Return On Assets of -0.31% is on the low side compared to the rest of the industry. DESP is outperformed by 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.
Looking at the Return On Invested Capital, with a value of 41.42%, DESP belongs to the top 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
The Operating Margin of DESP (16.02%) is better than 70.37% of its industry peers.
DESP's Gross Margin of 73.11% is amongst the best of the industry. DESP outperforms 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.
Compared to 1 year ago, DESP has more shares outstanding
Compared to 5 years ago, DESP has more shares outstanding
DESP has a worse debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 1.39, DESP is in line with its industry, outperforming 46.67% of the companies in the same industry.
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.
DESP's Debt to FCF ratio of 1.72 is amongst the best of the industry. DESP outperforms 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.
The Debt to Equity ratio of DESP (1.06) is better than 62.22% of its industry peers.
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.
With a Current ratio value of 0.85, DESP perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that DESP may have some problems paying its short term obligations.
The Quick ratio of DESP (0.85) 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
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.
Looking at the last year, DESP shows a quite strong growth in Revenue. The Revenue has grown by 9.65% in the last year.
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
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.
Based on estimates for the next years, DESP will show a quite strong growth in Revenue. The Revenue will grow by 11.38% on average per year.
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
With a Price/Earnings ratio of 114.71, DESP can be considered very expensive at the moment.
DESP's Price/Earnings ratio is a bit more expensive when compared to the industry. DESP is more expensive than 61.48% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. 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.
The average S&P500 Price/Forward Earnings ratio is at 22.67. DESP is around the same levels.
| 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.
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
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
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 Change-93.97%
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%