NYSE:DESP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

High growth potential with excellent 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: DESP's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

8.3%

DESP

-3.6%

US Online Retail

-0.4%

US Market


1 Year Return

18.6%

DESP

57.1%

US Online Retail

36.2%

US Market

Return vs Industry: DESP underperformed the US Online Retail industry which returned 57.1% over the past year.

Return vs Market: DESP underperformed the US Market which returned 36.2% over the past year.


Shareholder returns

DESPIndustryMarket
7 Day8.3%-3.6%-0.4%
30 Day13.5%-11.3%-2.9%
90 Day5.8%-3.1%5.0%
1 Year18.6%18.6%57.3%57.1%39.1%36.2%
3 Year-61.5%-61.5%62.3%62.1%48.4%39.0%
5 Yearn/a289.2%288.3%116.5%92.4%

Long-Term 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?

7.48x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DESP ($12.89) is trading above our estimate of fair value ($0.3)

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 US 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 (7.5x) compared to the US Online Retail industry average (4.9x).


Next Steps

Future Growth

How is Despegar.com forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

76.0%

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 (2%).

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 (47% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: DESP's revenue (47% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DESP is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

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

-40.9%

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, and losses have increased over the past 5 years at a rate of 40.9% 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 (64.6%).


Return on Equity

High ROE: DESP has a negative Return on Equity (-45.69%), as it is currently unprofitable.


Next Steps

Financial Health

How is Despegar.com's financial position?


Financial Position Analysis

Short Term Liabilities: DESP's short term assets ($460.2M) exceed its short term liabilities ($227.2M).

Long Term Liabilities: DESP's short term assets ($460.2M) exceed its long term liabilities ($148.5M).


Debt to Equity History and Analysis

Debt Level: DESP's debt to equity ratio (2.8%) 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


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 sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: DESP has sufficient cash runway for 2.5 years if free cash flow continues to reduce at historical rates of 23% each year.


Next Steps

Dividend

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

0.59%

Forecast Dividend Yield


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 recent payouts.

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

4.1yrs

Average management tenure


CEO

Damián Scokin (54 yo)

4.08yrs

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 & Director4.08yrsno data0.087%
$ 783.0k
Martín Rastellino
Co-Founder & Director3.75yrsno data0.76%
$ 6.8m
Alberto Lopez Gaffney
Chief Financial Officer2.42yrsno data0.024%
$ 219.8k
Alejandro Stein
Head of Operationsno datano datano data
Natalia Nirenberg
Head of Investor Relationsno datano datano data
Mariano Scagliarini
General Counsel1.33yrsno data0.0057%
$ 51.6k
Andrés Patetta
Chief Marketing Officerno datano datano data
Gonzalo Estebarena
Chief Commercial Directorno datano data0.052%
$ 466.6k
Sebastián Mackinnon
Executive Vice President of Travel Partners & Corporate Affairs5.25yrsno data0.045%
$ 403.5k
Pablo Montivero Araya
Chief Business Development Officer6.08yrsno data0.068%
$ 608.7k
Alexandre Moshe
CEO of Decolar in Brazilno datano datano data
Maria Bettina Zubin
Controllerno datano datano data

4.1yrs

Average Tenure

49yo

Average Age

Experienced Management: DESP's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Damián Scokin
CEO & Director4.08yrsno data0.087%
$ 783.0k
Martín Rastellino
Co-Founder & Director3.75yrsno data0.76%
$ 6.8m
Nilesh Lakhani
Independent Chairman of the Board2yrsno data0.068%
$ 611.7k
Mario Eduardo Vázquez
Independent Director6.58yrsno data0.010%
$ 92.1k
Michael Doyle
Director2.5yrsno data0.24%
$ 2.1m
Dirk Donath
Directorno datano datano data
Adam Jay
Director3yrsno datano data
Aseem Gupta
Directorno datano datano data

3.4yrs

Average Tenure

50yo

Average Age

Experienced Board: DESP's board of directors are considered experienced (3.4 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 3.3%.


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$901.610m
  • Shares outstanding: 69.95m
  • Website: https://www.despegar.com.ar

Number of Employees


Location

  • Despegar.com, Corp.
  • Juana Manso 999
  • Buenos Aires
  • Capital Federal
  • 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 23:45
End of Day Share Price2021/03/05 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.