Reasons Despegar (NYSE:DESP) can excite insiders

Despegar EBITDA Margin is very stable at the moment as compared to the past year. Despegar reported last year EBITDA Margin of 0.049. As of 12th of November 2020, Free Cash Flow per Share is likely to grow to 0.60, while Average Equity is likely to drop about 179.8 M. As many investors are getting excited about consumer cyclical space, it is fair to recap Despegar Com Corp. I will take a closer look at this stock and the recent sentiment generated by insiders. In this post, I will also go over a few different drivers affecting Despegar's products and services, and explain how it may impact Despegar insiders.
Published over a year ago
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Reviewed by Raphi Shpitalnik

We provide trade advice to complement the prevailing expert consensus on Despegar Com Corp. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
The performance of Despegar Corp in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Despegar Corp's stock prices. When investing in Despegar Corp, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Despegar Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Despegar Corp carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

How important is Despegar Corp's Liquidity

Despegar Corp financial leverage refers to using borrowed capital as a funding source to finance Despegar Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Despegar Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Despegar Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Despegar Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Despegar Corp's total debt and its cash.

What do experts say about Despegar?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

Another Deeper Perspective

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Despegar has an asset utilization ratio of 93.12 percent. This suggests that the company is making $0.93 for each dollar of assets. An increasing asset utilization means that Despegar Com Corp is more efficient with each dollar of assets it utilizes for everyday operations.
 2017 2018 2019 2020 (projected)
Current Assets633.71 M657.76 M616.44 M603.05 M
Total Assets738.69 M763.95 M801.21 M769.73 M

Chances of Despegar to retake control

The mean deviation is down to 2.46 as of today. Despegar Com Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect Despegar Com Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Despegar future alpha.

Our Final Takeaway

Although some other companies under the travel services industry are still a bit expensive, Despegar may offer a potential longer-term growth to insiders. The bottom line, as of the 12th of November 2020, we believe Despegar is currently overvalued. It slowly supersedes the market and projects low probability of distress in the next two years. Our actual 30 days advice on the firm is Cautious Hold.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Despegar Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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