Despegar.com
Market Cap
US$1.0b
Last Updated
2020/02/24 02:45 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
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
| DESP | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.9% | -2.2% | -1.1% |
| 30 Day | 18.2% | 6.6% | 1.5% |
| 90 Day | 19.6% | 13.8% | 6.6% |
| 1 Year | -16.2%-16.2% | 22.6%22.6% | 20.2%17.8% |
| 3 Year | n/a | 104.6%104.3% | 47.5%38.1% |
| 5 Year | n/a | 210.8%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
1 year ago | Simply Wall St
With A Return On Equity Of 11%, Has Despegarcom Corp's (NYSE:DESP) Management Done Well?1 year ago | Simply Wall St
Is Despegarcom Corp (NYSE:DESP) Worth US$19.57 Based On Intrinsic Value?1 year ago | Simply Wall St
Despegarcom Corp (NYSE:DESP): Can Growth Justify Its August Share Price?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3yrs | no data | 0.072% $741.0k | |
| Co-Founder & Director | 2.7yrs | no data | 0.82% $8.3m | |
| Chief Financial Officer | 1.3yrs | no data | 0.032% $330.0k | |
| Head of Operations | 0yrs | no data | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Chief Marketing Officer | 0yrs | no data | no data | |
| Head of Distribution | 5yrs | no data | 0.026% $264.8k | |
| CEO of Decolar in Brazil | 0yrs | no data | no data | |
| Controller | 0yrs | no data | no data | |
| Commercial Director | 2.4yrs | no data | 0.029% $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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3yrs | no data | 0.072% $741.0k | |
| Co-Founder & Director | 2.7yrs | no data | 0.82% $8.3m | |
| Chairman of the Board | 0.9yrs | no data | 0.012% $119.7k | |
| Independent Director | 5.5yrs | no data | no data | |
| Director | 1.4yrs | no data | 0.015% $151.0k | |
| Director | 1.9yrs | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DESP | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Sep 2017 |
| D3G | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 2017 |
| DESP | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 1 REP 1 COM USD0.00 | AR | ARS | Apr 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 02:45 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.