Despegar Corp Net Income vs. Return On Asset
| DESP Stock | USD 17.76 0.99 5.28% |
Net Income | First Reported 2015-03-31 | Previous Quarter 13.4 M | Current Value 8.9 M | Quarterly Volatility 21.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.68 | 0.6248 |
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For Despegar Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Despegar Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Despegar Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Despegar Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Despegar Corp over time as well as its relative position and ranking within its peers.
Despegar |
Is Hotels, Resorts & Cruise Lines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Despegar Corp. If investors know Despegar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Despegar Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.72) | Earnings Share 0.08 | Revenue Per Share 9.399 | Quarterly Revenue Growth 0.118 | Return On Assets 0.0687 |
The market value of Despegar Corp is measured differently than its book value, which is the value of Despegar that is recorded on the company's balance sheet. Investors also form their own opinion of Despegar Corp's value that differs from its market value or its book value, called intrinsic value, which is Despegar Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Despegar Corp's market value can be influenced by many factors that don't directly affect Despegar Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Despegar Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Despegar Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Despegar Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Despegar Corp Return On Asset vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Despegar Corp's current stock value. Our valuation model uses many indicators to compare Despegar Corp value to that of its competitors to determine the firm's financial worth. Despegar Corp is rated below average in net income category among its peers. It is rated # 4 in return on asset category among its peers . The ratio of Net Income to Return On Asset for Despegar Corp is about 356,477,438 . At this time, Despegar Corp's Net Income is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Despegar Corp by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Despegar Return On Asset vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Despegar Corp |
| = | 24.49 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Despegar Corp |
| = | 0.0687 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Despegar Return On Asset Comparison
Despegar Corp is currently under evaluation in return on asset category among its peers.
Despegar Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Despegar Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Despegar Corp will eventually generate negative long term returns. The profitability progress is the general direction of Despegar Corp's change in net profit over the period of time. It can combine multiple indicators of Despegar Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -12.4 M | -11.8 M | |
| Interest Income | 15.3 M | 10.1 M | |
| Operating Income | 64.2 M | 67.5 M | |
| Net Income From Continuing Ops | 24.5 M | 25.7 M | |
| Income Before Tax | 27.6 M | 29 M | |
| Total Other Income Expense Net | -36.6 M | -34.8 M | |
| Net Loss | -61.7 M | -64.8 M | |
| Net Income | 24.5 M | 25.7 M | |
| Income Tax Expense | 3.1 M | 3.8 M | |
| Net Interest Income | -26.8 M | -25.4 M | |
| Change To Netincome | 18.6 M | 18.2 M | |
| Net Income Per Share | 0.32 | 0.33 | |
| Income Quality | 4.19 | 4.40 | |
| Net Income Per E B T | 0.89 | 0.74 |
Despegar Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Despegar Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Despegar Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Despegar Corp's important profitability drivers and their relationship over time.
Use Despegar Corp in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Despegar Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Despegar Corp will appreciate offsetting losses from the drop in the long position's value.Despegar Corp Pair Trading
Despegar Corp Pair Trading Analysis
The ability to find closely correlated positions to Despegar Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Despegar Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Despegar Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Despegar Corp to buy it.
The correlation of Despegar Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Despegar Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Despegar Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Despegar Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Despegar Corp position
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Additional Tools for Despegar Stock Analysis
When running Despegar Corp's price analysis, check to measure Despegar Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Despegar Corp is operating at the current time. Most of Despegar Corp's value examination focuses on studying past and present price action to predict the probability of Despegar Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Despegar Corp's price. Additionally, you may evaluate how the addition of Despegar Corp to your portfolios can decrease your overall portfolio volatility.