DESPEGAR.COM CORP (DESP) Stock Fundamental Analysis
NYSE:DESP - New York Stock Exchange, Inc. - VGG273581030 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to DESP. DESP was compared to 136 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 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.
DESP had negative earnings in each of the past 5 years.
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
DESP has a Return On Assets (1.04%) which is comparable to the rest of the industry.
DESP has a Return On Equity of 14.99%. This is in the better half of the industry: DESP outperforms 74.26% of its industry peers.
DESP has a better Return On Invested Capital (32.56%) than 96.32% 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
DESP has a Profit Margin (1.22%) which is in line with its industry peers.
With a decent Operating Margin value of 12.77%, DESP is doing good in the industry, outperforming 63.24% of the companies in the same industry.
In the last couple of years the Operating Margin of DESP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 70.08%, DESP belongs to the top of the industry, outperforming 84.56% of the companies in the same industry.
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.
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.
The debt/assets ratio for DESP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.33, we must say that DESP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DESP (1.33) is comparable to the rest of the 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 90.44% 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 has a Debt to Equity ratio of 0.52. This is in the better half of the industry: DESP outperforms 72.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 1.33 |
ROIC/WACC2.93
WACC11.12%
2.3 Liquidity
A Current Ratio of 0.83 indicates that DESP may have some problems paying its short term obligations.
DESP has a Current ratio (0.83) which 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's Quick ratio of 0.83 is in line compared to the rest of the industry. DESP outperforms 51.47% of its industry peers.
| 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%.
The Revenue has been growing slightly by 5.88% on average over the past years.
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
DESP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 126.90% yearly.
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 3Y225.96%
EPS Next 5Y126.9%
Revenue Next Year10.45%
Revenue Next 2Y9.67%
Revenue Next 3Y10.06%
Revenue Next 5Y11.05%
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
Based on the Price/Earnings ratio of 69.32, the valuation of DESP can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as DESP.
The average S&P500 Price/Earnings ratio is at 28.18. DESP is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 19.97 indicates a rather expensive valuation of DESP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DESP indicates a somewhat cheap valuation: DESP is cheaper than 61.03% of the companies listed in the same industry.
DESP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.32 | ||
| Fwd PE | 19.97 |
4.2 Price Multiples
DESP's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 42.2 | ||
| EV/EBITDA | 10.55 |
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 225.96% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y412.85%
EPS Next 3Y225.96%
5. Dividend
5.1 Amount
No dividends for DESP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.41
-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 Change2.11%
Ins Owners1.89%
Ins Owner ChangeN/A
Market Cap1.62B
Analysts76
Price Target21.29 (9.69%)
Short Float %11.03%
Short Ratio2.74
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)0%
PT rev (3m)2.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.2%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.32 | ||
| Fwd PE | 19.97 | ||
| P/S | 2.19 | ||
| P/FCF | 42.2 | ||
| P/OCF | 20.58 | ||
| P/B | 27.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.55 |
EPS(TTM)0.28
EY1.44%
EPS(NY)0.97
Fwd EY5.01%
FCF(TTM)0.46
FCFY2.37%
OCF(TTM)0.94
OCFY4.86%
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 | 1.33 |
F-Score8
WACC11.12%
ROIC/WACC2.93
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 3Y225.96%
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 3Y10.06%
Revenue Next 5Y11.05%
EBIT growth 1Y205.97%
EBIT growth 3YN/A
EBIT growth 5Y7.35%
EBIT Next Year164.21%
EBIT Next 3Y51.37%
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