DESPEGAR.COM CORP (DESP)
VGG273581030 - Common Stock
Taking everything into account, DESP scores 4 out of 10 in our fundamental rating. DESP was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. The financial health of DESP is average, but there are quite some concerns on its profitability. DESP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DESP has reported negative net income.
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 worse Return On Assets (1.32%) than 61.94% of its industry peers.
With a decent Return On Equity value of 20.14%, DESP is doing good in the industry, outperforming 73.88% of the companies in the same industry.
DESP's Return On Invested Capital of 13.97% is amongst the best of the industry. DESP outperforms 84.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.32% | ||
| ROE | 20.14% | ||
| ROIC | 13.97% |
ROA(3y)-12.73%
ROA(5y)-7.66%
ROE(3y)-104.18%
ROE(5y)-63.11%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 1.82%, DESP is doing worse than 61.19% of the companies in the same industry.
With a Operating Margin value of 7.05%, DESP perfoms like the industry average, outperforming 44.03% of the companies in the same industry.
With a decent Gross Margin value of 66.38%, DESP is doing good in the industry, outperforming 77.61% of the companies in the same industry.
DESP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.05% | ||
| PM (TTM) | 1.82% | ||
| GM | 66.38% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.11%
GM growth 5Y-1.95%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DESP is still creating some value.
DESP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
DESP has an Altman-Z score of 0.36. 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 0.36, DESP is doing worse than 76.12% of the companies in the same industry.
The Debt to FCF ratio of DESP is 1.39, which is an excellent value as it means it would take DESP, only 1.39 years of fcf income to pay off all of its debts.
DESP has a better Debt to FCF ratio (1.39) than 86.57% of its industry peers.
DESP has a Debt/Equity ratio of 0.52. This is a neutral value indicating DESP is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.52, DESP is doing good in the industry, outperforming 71.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.39 | ||
| Altman-Z | 0.36 |
ROIC/WACC1.43
WACC9.75%
2.3 Liquidity
A Current Ratio of 0.80 indicates that DESP may have some problems paying its short term obligations.
DESP has a Current ratio (0.80) which is comparable to the rest of the industry.
A Quick Ratio of 0.80 indicates that DESP may have some problems paying its short term obligations.
DESP has a Quick ratio (0.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
DESP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.79%, which is quite impressive.
DESP shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.30%.
DESP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.53% yearly.
EPS 1Y (TTM)76.79%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q47.62%
Revenue 1Y (TTM)25.3%
Revenue growth 3Y0.83%
Revenue growth 5Y0.53%
Revenue growth Q2Q22.32%
3.2 Future
The Earnings Per Share is expected to grow by 15.64% on average over the next years. This is quite good.
Based on estimates for the next years, DESP will show a quite strong growth in Revenue. The Revenue will grow by 14.01% on average per year.
EPS Next Y142.78%
EPS Next 2Y66.28%
EPS Next 3Y43.86%
EPS Next 5Y15.64%
Revenue Next Year28.58%
Revenue Next 2Y23.38%
Revenue Next 3Y19.31%
Revenue Next 5Y14.01%
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
DESP reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 13.95, DESP is valued correctly.
Based on the Price/Forward Earnings ratio, DESP is valued a bit cheaper than the industry average as 76.87% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DESP to the average of the S&P500 Index (21.35), we can say DESP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DESP is valued cheaper than 82.09% of the companies in the same industry.
DESP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.27 | ||
| EV/EBITDA | 7.14 |
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 43.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y66.28%
EPS Next 3Y43.86%
5. Dividend
5.1 Amount
DESP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DESPEGAR.COM CORP
NYSE:DESP (4/26/2024, 7:04:00 PM)
After market: 12.81 0 (0%)12.81
+0.04 (+0.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap846.23M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.32% | ||
| ROE | 20.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.05% | ||
| PM (TTM) | 1.82% | ||
| GM | 66.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)76.79%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y142.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.3%
Revenue growth 3Y0.83%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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EBIT Next 3Y
EBIT Next 5Y
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