NYSE:DESP

Stock Analysis Report

Executive Summary

Despegar.com, Corp., online travel company, provides a range of travel and travel-related products through its Websites and mobile applications in Latin America.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Despegar.com's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DESP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.9%

DESP

-2.2%

US Online Retail

-1.1%

US Market


1 Year Return

-16.2%

DESP

22.6%

US Online Retail

17.8%

US Market

Return vs Industry: DESP underperformed the US Online Retail industry which returned 22.6% over the past year.

Return vs Market: DESP underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

DESPIndustryMarket
7 Day2.9%-2.2%-1.1%
30 Day18.2%6.6%1.5%
90 Day19.6%13.8%6.6%
1 Year-16.2%-16.2%22.6%22.6%20.2%17.8%
3 Yearn/a104.6%104.3%47.5%38.1%
5 Yearn/a210.8%197.2%71.2%52.4%

Price Volatility Vs. Market

How volatile is Despegar.com's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Despegar.com undervalued compared to its fair value and its price relative to the market?

5.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DESP ($15.1) is trading above our estimate of fair value ($0.03)

Significantly Below Fair Value: DESP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DESP is unprofitable, so we can't compare its PE Ratio to the Online Retail industry average.

PE vs Market: DESP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DESP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DESP is overvalued based on its PB Ratio (5.4x) compared to the US Online Retail industry average (3x).


Next Steps

Future Growth

How is Despegar.com forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

83.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DESP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: DESP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DESP's is expected to become profitable in the next 3 years.

Revenue vs Market: DESP's revenue (11.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: DESP's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DESP's Return on Equity is forecast to be low in 3 years time (17.9%).


Next Steps

Past Performance

How has Despegar.com performed over the past 5 years?

21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DESP is currently unprofitable.

Growing Profit Margin: DESP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DESP is unprofitable, but has reduced losses over the past 5 years at a rate of 21.2% per year.

Accelerating Growth: Unable to compare DESP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DESP is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (15%).


Return on Equity

High ROE: DESP has a negative Return on Equity (-7.87%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Despegar.com's financial position?


Financial Position Analysis

Short Term Liabilities: DESP's short term assets ($580.7M) exceed its short term liabilities ($402.3M).

Long Term Liabilities: DESP's short term assets ($580.7M) exceed its long term liabilities ($130.0M).


Debt to Equity History and Analysis

Debt Level: DESP's debt to equity ratio (9.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DESP's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: DESP has a low level of unsold assets or inventory.

Debt Coverage by Assets: DESP's debt is covered by short term assets (assets are 32.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DESP has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: DESP has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Despegar.com's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DESP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DESP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DESP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DESP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DESP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Damián Scokin (53yo)

3yrs

Tenure

Mr. Damián Scokin has been Chief Executive Officer of Despegar.com, Corp. since February 2017 and has been its Director Since April 2017. He joined Despegar in December 2016. Mr. Scokin has an extensive gl ...


Leadership Team

NamePositionTenureCompensationOwnership
Damián Scokin
CEO & Director3yrsno data0.072% $741.0k
Martín Rastellino
Co-Founder & Director2.7yrsno data0.82% $8.3m
Alberto Lopez Gaffney
Chief Financial Officer1.3yrsno data0.032% $330.0k
Alejandro Stein
Head of Operations0yrsno datano data
Natalia Nirenberg
Head of Investor Relations0yrsno datano data
Andrés Patetta
Chief Marketing Officer0yrsno datano data
Pablo Montivero Araya
Head of Distribution5yrsno data0.026% $264.8k
Alexandre Moshe
CEO of Decolar in Brazil0yrsno datano data
Maria Bettina Zubin
Controller0yrsno datano data
Gonzalo Estebarena
Commercial Director2.4yrsno data0.029% $300.4k

2.7yrs

Average Tenure

49yo

Average Age

Experienced Management: DESP's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Damián Scokin
CEO & Director3yrsno data0.072% $741.0k
Martín Rastellino
Co-Founder & Director2.7yrsno data0.82% $8.3m
Nilesh Lakhani
Chairman of the Board0.9yrsno data0.012% $119.7k
Mario Eduardo Vázquez
Independent Director5.5yrsno datano data
Michael Doyle
Director1.4yrsno data0.015% $151.0k
Adam Jay
Director1.9yrsno datano data

2.3yrs

Average Tenure

51yo

Average Age

Experienced Board: DESP's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Despegar.com, Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Despegar.com, Corp.
  • Ticker: DESP
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$1.022b
  • Shares outstanding: 67.69m
  • Website: https://www.despegar.com.ar

Number of Employees


Location

  • Despegar.com, Corp.
  • Juana Manso 999
  • Buenos Aires
  • Buenos Aires
  • C1107CBR
  • Argentina

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DESPNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2017
D3GDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2017
DESPBASE (Buenos Aires Stock Exchange)CEDEAR EACH 1 REP 1 COM USD0.00ARARSApr 2019

Biography

Despegar.com, Corp., online travel company, provides a range of travel and travel-related products through its Websites and mobile applications in Latin America. The company operates through two segments, Air; and Packages, Hotels and Other Travel Products. It offers airline tickets, packages, hotels, and other travel-related products, which enable consumers to find, compare, plan, and purchase travel products through its marketplace under the Despegar and Decolar brands. The company provides a technology platform for its travel suppliers to manage the distribution of their products. Despegar.com, Corp. was founded in 1999 and is based in Buenos Aires, Argentina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 02:45
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.