Despegar com Corp (DESP) Stock Fundamental Analysis
USA - New York Stock Exchange - 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 132 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
In the past year DESP was profitable.
DESP had a positive operating cash flow in the past year.
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 Return On Assets of -0.31%. This is in the lower half of the industry: DESP underperforms 63.70% of its industry peers.
Looking at the Return On Equity, with a value of -5.89%, DESP is in line with its industry, outperforming 46.67% of the companies in the same industry.
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
DESP's Operating Margin of 16.02% is fine compared to the rest of the industry. DESP outperforms 70.37% of its industry peers.
DESP has a better Gross Margin (73.11%) than 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.
The number of shares outstanding for DESP has been increased compared to 1 year ago.
The number of shares outstanding for DESP has been increased compared to 5 years ago.
Compared to 1 year ago, DESP has a worse debt to assets ratio.
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'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.
DESP has a Debt to FCF ratio of 1.72. This is amongst the best in 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.
DESP has a better Debt to Equity ratio (1.06) 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.
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
The Earnings Per Share has grown by an impressive 525.00% over the past year.
The Revenue has grown by 9.65% in the past year. This is quite good.
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
DESP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 74.28% yearly.
DESP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.38% yearly.
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.
Based on the Price/Earnings ratio, DESP is valued a bit more expensive than 61.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of DESP to the average of the S&P500 Index (26.31), we can say DESP is valued expensively.
The Price/Forward Earnings ratio is 20.06, which indicates a rather expensive current valuation of DESP.
DESP's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.56, DESP is valued a bit cheaper.
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DESP is on the same level as its industry peers.
| 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
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-11.36%
Ins Owners1.89%
Ins Owner ChangeN/A
Market Cap1.63B
Revenue(TTM)774.06M
Net Income(TTM)-2.81M
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%.