Despegar com Corp (DESP) Fundamental Analysis & Valuation

NYSE:DESP • VGG273581030

Current stock price

19.5 USD
+0.03 (+0.15%)
At close:
19.5 USD
0 (0%)
After Hours:

This DESP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. DESP Profitability Analysis

1.1 Basic Checks

  • In the past year DESP was profitable.
  • In the past year DESP had a positive cash flow from operations.
  • In the past 5 years DESP always reported negative net income.
  • The reported operating cash flow has been mixed in the past 5 years: DESP reported negative operating cash flow in multiple years.
DESP Yearly Net Income VS EBIT VS OCF VS FCFDESP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M -150M

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.
  • The Return On Equity of DESP (-5.89%) is comparable to the rest of the 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 RankSector 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
DESP Yearly ROA, ROE, ROICDESP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150

1.3 Margins

  • With a decent Operating Margin value of 16.02%, DESP is doing good in the industry, outperforming 70.37% of the companies in the same industry.
  • The Gross Margin of DESP (73.11%) is better than 90.37% of its industry peers.
  • In the last couple of years the Gross Margin of DESP has grown nicely.
Industry RankSector 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%
DESP Yearly Profit, Operating, Gross MarginsDESP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

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4

2. DESP Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DESP is creating value.
  • DESP has more shares outstanding than it did 1 year ago.
  • DESP has more shares outstanding than it did 5 years ago.
  • DESP has a worse debt/assets ratio than last year.
DESP Yearly Shares OutstandingDESP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
DESP Yearly Total Debt VS Total AssetsDESP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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 has a Altman-Z score of 1.39. This is comparable to the rest of the industry: DESP outperforms 46.67% of its industry peers.
  • DESP has a debt to FCF ratio of 1.72. This is a very positive value and a sign of high solvency as it would only need 1.72 years to pay back of all of its debts.
  • The Debt to FCF ratio of DESP (1.72) is better than 85.93% of its industry peers.
  • A Debt/Equity ratio of 1.06 is on the high side and indicates that DESP has dependencies on debt financing.
  • DESP has a better Debt to Equity ratio (1.06) than 62.22% of its industry peers.
  • Although DESP's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 1.72
Altman-Z 1.39
ROIC/WACC3.76
WACC11.03%
DESP Yearly LT Debt VS Equity VS FCFDESP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M

2.3 Liquidity

  • DESP has a Current 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.
  • The Current ratio of DESP (0.85) 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 in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.85
DESP Yearly Current Assets VS Current LiabilitesDESP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. DESP Growth Analysis

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

  • 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

  • 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.
DESP Yearly Revenue VS EstimatesDESP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B
DESP Yearly EPS VS EstimatesDESP Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 -1 2 -2 3

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Find the best growth stocksShow best growing peers

4

4. DESP Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 114.71, which means the current valuation is very expensive for DESP.
  • 61.48% of the companies in the same industry are cheaper than DESP, based on the Price/Earnings ratio.
  • DESP is valuated expensively when we compare the Price/Earnings ratio to 25.73, which is the current average of the S&P500 Index.
  • DESP is valuated rather expensively with a Price/Forward Earnings ratio of 20.06.
  • DESP's Price/Forward Earnings is on the same level as the industry average.
  • DESP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.72.
Industry RankSector Rank
PE 114.71
Fwd PE 20.06
DESP Price Earnings VS Forward Price EarningsDESP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DESP indicates a rather cheap valuation: DESP is cheaper than 82.22% of the companies listed in the same industry.
  • DESP's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 55.63
EV/EBITDA 7.46
DESP Per share dataDESP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DESP Dividend Analysis

5.1 Amount

  • DESP does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

DESP Fundamentals: All Metrics, Ratios and Statistics

Despegar com Corp

NYSE:DESP (5/14/2025, 8:04:00 PM)

After market: 19.5 0 (0%)

19.5

+0.03 (+0.15%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)05-14
Earnings (Next)08-13
Inst Owners70.89%
Inst Owner Change-32.83%
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis 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 of Despegar com Corp (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.


Can you provide the PE and PB ratios for DESP stock?

The Price/Earnings (PE) ratio for Despegar com Corp (DESP) is 114.71 and the Price/Book (PB) ratio is 34.21.


Can you provide the expected EPS growth for DESP stock?

The Earnings per Share (EPS) of Despegar com Corp (DESP) is expected to grow by 471.8% in the next year.