Despegar Story

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DESP -- USA Stock  

USD 12.18  0.30  2.53%

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 two weeks ago
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Reasons Despegar (NYSE:DESP) can excite insiders
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.

How important is Despegar's Liquidity

Despegar financial leverage refers to using borrowed capital as a funding source to finance Despegar Com Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Despegar 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. Please check the breakdown between Despegar's total debt and its cash.

How Despegar utilizes its cash?

To perform a cash flow analysis of Despegar, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Despegar is receiving and how much cash it distributes out in a given period. The Despegar cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Despegar Net Cash Flow from Operations is very stable at the moment as compared to the past year. Despegar reported last year Net Cash Flow from Operations of 44.24 Million

What did Despegar file with SEC?

The SEC filings are financial statements or other formal documents of Despegar Com Corp that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Despegar shareholders may or may not be submitted as SEC does not always require it.
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Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Despegar shareholders may or may not be submitted as SEC does not always require it.

What is driving Despegar Investor Appetite?

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.

About Contributor

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 Com Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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