GOGO INC (GOGO) Stock Fundamental Analysis
USA - NASDAQ:GOGO - US38046C1099 - Common Stock
8.88 USD
-0.2 (-2.2%)
8.9 USD
+0.02 (+0.23%)
We assign a fundamental rating of 4 out of 10 to GOGO. GOGO was compared to 22 industry peers in the Wireless Telecommunication Services industry. GOGO has a medium profitability rating, but doesn't score so well on its financial health evaluation. GOGO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GOGO was profitable.
GOGO had a positive operating cash flow in the past year.
GOGO had positive earnings in 4 of the past 5 years.
GOGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GOGO has a Return On Assets (0.58%) which is comparable to the rest of the industry.
The Return On Equity of GOGO (7.07%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.83%, GOGO is in line with its industry, outperforming 54.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GOGO is significantly above the industry average of 5.84%.
The 3 year average ROIC (10.98%) for GOGO is well above the current ROIC(4.83%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 7.07% | ||
| ROIC | 4.83% |
ROA(3y)10.63%
ROA(5y)3.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.98%
ROIC(5y)15.49%
1.3 Margins
The Profit Margin of GOGO (1.05%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GOGO has declined.
GOGO has a Operating Margin of 9.51%. This is comparable to the rest of the industry: GOGO outperforms 54.55% of its industry peers.
In the last couple of years the Operating Margin of GOGO has declined.
GOGO's Gross Margin of 51.04% is in line compared to the rest of the industry. GOGO outperforms 45.45% of its industry peers.
GOGO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.51% | ||
| PM (TTM) | 1.05% | ||
| GM | 51.04% |
OM growth 3Y-31.55%
OM growth 5Y-18.09%
PM growth 3Y-59.19%
PM growth 5YN/A
GM growth 3Y-3.48%
GM growth 5Y-2.12%
2. Health
2.1 Basic Checks
GOGO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GOGO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GOGO has been increased compared to 5 years ago.
GOGO has a better debt/assets ratio than last year.
2.2 Solvency
GOGO has an Altman-Z score of 0.19. This is a bad value and indicates that GOGO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.19, GOGO is doing worse than 77.27% of the companies in the same industry.
The Debt to FCF ratio of GOGO is 30.33, which is on the high side as it means it would take GOGO, 30.33 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 30.33, GOGO is doing worse than 77.27% of the companies in the same industry.
A Debt/Equity ratio of 8.10 is on the high side and indicates that GOGO has dependencies on debt financing.
GOGO has a Debt to Equity ratio of 8.10. This is amonst the worse of the industry: GOGO underperforms 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.1 | ||
| Debt/FCF | 30.33 | ||
| Altman-Z | 0.19 |
ROIC/WACC0.54
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.71 indicates that GOGO should not have too much problems paying its short term obligations.
GOGO's Current ratio of 1.71 is fine compared to the rest of the industry. GOGO outperforms 77.27% of its industry peers.
A Quick Ratio of 1.32 indicates that GOGO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.32, GOGO is doing good in the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
GOGO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -82.35%.
Measured over the past years, GOGO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -47.56% on average per year.
GOGO shows a strong growth in Revenue. In the last year, the Revenue has grown by 72.77%.
GOGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.55% yearly.
EPS 1Y (TTM)-82.35%
EPS 3Y-47.56%
EPS 5YN/A
EPS Q2Q%800%
Revenue 1Y (TTM)72.77%
Revenue growth 3Y9.83%
Revenue growth 5Y7.55%
Sales Q2Q%121.48%
3.2 Future
The Earnings Per Share is expected to grow by 78.58% on average over the next years. This is a very strong growth
GOGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 34.72% yearly.
EPS Next Y116.24%
EPS Next 2Y98.94%
EPS Next 3Y78.58%
EPS Next 5YN/A
Revenue Next Year123.97%
Revenue Next 2Y51.97%
Revenue Next 3Y34.72%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 98.67, which means the current valuation is very expensive for GOGO.
Based on the Price/Earnings ratio, GOGO is valued a bit more expensive than the industry average as 77.27% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.40. GOGO is valued rather expensively when compared to this.
GOGO is valuated correctly with a Price/Forward Earnings ratio of 14.96.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOGO is on the same level as its industry peers.
GOGO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.67 | ||
| Fwd PE | 14.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOGO indicates a slightly more expensive valuation: GOGO is more expensive than 77.27% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOGO indicates a slightly more expensive valuation: GOGO is more expensive than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.11 | ||
| EV/EBITDA | 18.02 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GOGO's earnings are expected to grow with 78.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y98.94%
EPS Next 3Y78.58%
5. Dividend
5.1 Amount
GOGO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.88
-0.2 (-2.2%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners59.65%
Inst Owner Change-0.04%
Ins Owners0.1%
Ins Owner Change-0.4%
Market Cap1.19B
Analysts78.18
Price Target16.58 (86.71%)
Short Float %24.48%
Short Ratio9.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.16%
Min EPS beat(2)-23.27%
Max EPS beat(2)6.95%
EPS beat(4)2
Avg EPS beat(4)-197.75%
Min EPS beat(4)-929.56%
Max EPS beat(4)154.9%
EPS beat(8)5
Avg EPS beat(8)-80.78%
EPS beat(12)8
Avg EPS beat(12)-20.47%
EPS beat(16)12
Avg EPS beat(16)105.04%
Revenue beat(2)2
Avg Revenue beat(2)2.98%
Min Revenue beat(2)0.67%
Max Revenue beat(2)5.29%
Revenue beat(4)4
Avg Revenue beat(4)11.51%
Min Revenue beat(4)0.67%
Max Revenue beat(4)38.77%
Revenue beat(8)6
Avg Revenue beat(8)5.61%
Revenue beat(12)7
Avg Revenue beat(12)3.23%
Revenue beat(16)11
Avg Revenue beat(16)2.8%
PT rev (1m)0%
PT rev (3m)-1.52%
EPS NQ rev (1m)-7.89%
EPS NQ rev (3m)-36.36%
EPS NY rev (1m)-2.9%
EPS NY rev (3m)-27.73%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.67 | ||
| Fwd PE | 14.96 | ||
| P/S | 1.71 | ||
| P/FCF | 43.11 | ||
| P/OCF | 21.2 | ||
| P/B | 11.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.02 |
EPS(TTM)0.09
EY1.01%
EPS(NY)0.59
Fwd EY6.69%
FCF(TTM)0.21
FCFY2.32%
OCF(TTM)0.42
OCFY4.72%
SpS5.2
BVpS0.77
TBVpS-2.64
PEG (NY)0.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 7.07% | ||
| ROCE | 6.37% | ||
| ROIC | 4.83% | ||
| ROICexc | 5.35% | ||
| ROICexgc | 10.44% | ||
| OM | 9.51% | ||
| PM (TTM) | 1.05% | ||
| GM | 51.04% | ||
| FCFM | 3.96% |
ROA(3y)10.63%
ROA(5y)3.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.98%
ROIC(5y)15.49%
ROICexc(3y)13.98%
ROICexc(5y)N/A
ROICexgc(3y)16.46%
ROICexgc(5y)N/A
ROCE(3y)14.49%
ROCE(5y)20.44%
ROICexcg growth 3Y-41%
ROICexcg growth 5Y-6.98%
ROICexc growth 3Y-49.04%
ROICexc growth 5Y-16%
OM growth 3Y-31.55%
OM growth 5Y-18.09%
PM growth 3Y-59.19%
PM growth 5YN/A
GM growth 3Y-3.48%
GM growth 5Y-2.12%
F-Score6
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.1 | ||
| Debt/FCF | 30.33 | ||
| Debt/EBITDA | 7.81 | ||
| Cap/Depr | 70.27% | ||
| Cap/Sales | 4.1% | ||
| Interest Coverage | 0.97 | ||
| Cash Conversion | 52.55% | ||
| Profit Quality | 378.96% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 0.19 |
F-Score6
WACC8.89%
ROIC/WACC0.54
Cap/Depr(3y)227.62%
Cap/Depr(5y)160.48%
Cap/Sales(3y)8.16%
Cap/Sales(5y)6.08%
Profit Quality(3y)66.76%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-82.35%
EPS 3Y-47.56%
EPS 5YN/A
EPS Q2Q%800%
EPS Next Y116.24%
EPS Next 2Y98.94%
EPS Next 3Y78.58%
EPS Next 5YN/A
Revenue 1Y (TTM)72.77%
Revenue growth 3Y9.83%
Revenue growth 5Y7.55%
Sales Q2Q%121.48%
Revenue Next Year123.97%
Revenue Next 2Y51.97%
Revenue Next 3Y34.72%
Revenue Next 5YN/A
EBIT growth 1Y-42.32%
EBIT growth 3Y-24.83%
EBIT growth 5Y-11.9%
EBIT Next Year138.29%
EBIT Next 3Y41.68%
EBIT Next 5YN/A
FCF growth 1Y-44.93%
FCF growth 3Y-33.57%
FCF growth 5YN/A
OCF growth 1Y-39.98%
OCF growth 3Y-10.46%
OCF growth 5YN/A