Despegar.com, Corp.
Despegar.com, Corp. Fundamental Analysis
Despegar.com, Corp. (DESP) shows weak financial fundamentals with a PE ratio of 58.05, profit margin of 3.61%, and ROE of -65.31%. The company generates $0.8B in annual revenue with moderate year-over-year growth of 9.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -21.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DESP's fundamental strength across five key dimensions:
Efficiency Score
WeakDESP struggles to generate sufficient returns from assets.
Valuation Score
ModerateDESP shows balanced valuation metrics.
Growth Score
ModerateDESP shows steady but slowing expansion.
Financial Health Score
ModerateDESP shows balanced financial health with some risks.
Profitability Score
WeakDESP struggles to sustain strong margins.
Key Financial Metrics
Is DESP Expensive or Cheap?
P/E Ratio
DESP trades at 58.05 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DESP's PEG of -3.97 indicates potential undervaluation.
Price to Book
The market values Despegar.com, Corp. at -17.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.03 times EBITDA. This signals the market has high growth expectations.
How Well Does DESP Make Money?
Net Profit Margin
For every $100 in sales, Despegar.com, Corp. keeps $3.61 as profit after all expenses.
Operating Margin
Core operations generate 16.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-65.31 in profit for every $100 of shareholder equity.
ROA
Despegar.com, Corp. generates $3.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Despegar.com, Corp. generates limited operating cash flow of $64.92M, signaling weaker underlying cash strength.
Free Cash Flow
Despegar.com, Corp. produces free cash flow of $27.86M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.33 in free cash annually.
FCF Yield
DESP converts 1.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
58.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
-17.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-0.71
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.65
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.60
vs 25 benchmark
How DESP Stacks Against Its Sector Peers
| Metric | DESP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 58.05 | 24.82 | Worse (Expensive) |
| ROE | -65.31% | 1182.00% | Weak |
| Net Margin | 3.61% | -370.00% (disorted) | Weak |
| Debt/Equity | -0.71 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 0.85 | 2.59 | Weak Liquidity |
| ROA | 3.08% | -6142.00% (disorted) | Weak |
DESP outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Despegar.com, Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.32%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
211.59%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
5.42%
Industry Style: Cyclical, Growth, Discretionary
Growing