GOGO INC (GOGO) Stock Fundamental Analysis
NASDAQ:GOGO - Nasdaq - US38046C1099 - Common Stock - Currency: USD
GOGO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 21 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. While showing a medium growth rate, GOGO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year GOGO was profitable.
GOGO had a positive operating cash flow in the past year.
Of the past 5 years GOGO 4 years were profitable.
In the past 5 years GOGO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -0.38%, GOGO is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
GOGO's Return On Equity of -5.67% is on the low side compared to the rest of the industry. GOGO is outperformed by 76.19% of its industry peers.
GOGO's Return On Invested Capital of 3.75% is in line compared to the rest of the industry. GOGO outperforms 47.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOGO is above the industry average of 6.28%.
The last Return On Invested Capital (3.75%) for GOGO is well below the 3 year average (10.98%), which needs to be investigated, but indicates that GOGO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.38% | ||
| ROE | -5.67% | ||
| ROIC | 3.75% |
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
In the last couple of years the Profit Margin of GOGO has declined.
GOGO has a Operating Margin (9.07%) which is in line with its industry peers.
In the last couple of years the Operating Margin of GOGO has declined.
GOGO has a Gross Margin of 55.09%. This is comparable to the rest of the industry: GOGO outperforms 42.86% of its industry peers.
In the last couple of years the Gross Margin of GOGO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.07% | ||
| PM (TTM) | N/A | ||
| GM | 55.09% |
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.
Compared to 1 year ago, GOGO has more shares outstanding
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
Based on the Altman-Z score of 0.40, we must say that GOGO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GOGO (0.40) is worse than 71.43% of its industry peers.
The Debt to FCF ratio of GOGO is 54.97, which is on the high side as it means it would take GOGO, 54.97 years of fcf income to pay off all of its debts.
GOGO has a worse Debt to FCF ratio (54.97) than 71.43% of its industry peers.
A Debt/Equity ratio of 10.03 is on the high side and indicates that GOGO has dependencies on debt financing.
GOGO has a Debt to Equity ratio of 10.03. This is amonst the worse of the industry: GOGO underperforms 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.03 | ||
| Debt/FCF | 54.97 | ||
| Altman-Z | 0.4 |
ROIC/WACC0.46
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.84 indicates that GOGO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.84, GOGO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.36 indicates that GOGO should not have too much problems paying its short term obligations.
The Quick ratio of GOGO (1.36) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
GOGO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -99.15%.
GOGO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -47.56% yearly.
GOGO shows a strong growth in Revenue. In the last year, the Revenue has grown by 41.53%.
GOGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.55% yearly.
EPS 1Y (TTM)-99.15%
EPS 3Y-47.56%
EPS 5YN/A
EPS Q2Q%-60.87%
Revenue 1Y (TTM)41.53%
Revenue growth 3Y9.83%
Revenue growth 5Y7.55%
Sales Q2Q%120.77%
3.2 Future
GOGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 83.93% yearly.
The Revenue is expected to grow by 36.39% on average over the next years. This is a very strong growth
EPS Next Y231.5%
EPS Next 2Y121.78%
EPS Next 3Y83.93%
EPS Next 5YN/A
Revenue Next Year123.57%
Revenue Next 2Y53.69%
Revenue Next 3Y36.39%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 1440.00, the valuation of GOGO can be described as expensive.
GOGO's Price/Earnings ratio is a bit more expensive when compared to the industry. GOGO is more expensive than 76.19% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. GOGO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 19.52, the valuation of GOGO can be described as rather expensive.
GOGO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, GOGO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1440 | ||
| Fwd PE | 19.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOGO is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
71.43% of the companies in the same industry are cheaper than GOGO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 125.44 | ||
| EV/EBITDA | 32.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GOGO's earnings are expected to grow with 83.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.22
PEG (5Y)N/A
EPS Next 2Y121.78%
EPS Next 3Y83.93%
5. Dividend
5.1 Amount
GOGO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.4
+1.87 (+14.92%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners58.51%
Inst Owner Change7.64%
Ins Owners0.17%
Ins Owner Change0.68%
Market Cap1.90B
Analysts80
Price Target16.83 (16.87%)
Short Float %31.91%
Short Ratio11.36
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)-461.3%
Min EPS beat(2)-929.56%
Max EPS beat(2)6.95%
EPS beat(4)2
Avg EPS beat(4)-213.32%
Min EPS beat(4)-929.56%
Max EPS beat(4)154.9%
EPS beat(8)6
Avg EPS beat(8)-32.9%
EPS beat(12)9
Avg EPS beat(12)-17.2%
EPS beat(16)12
Avg EPS beat(16)42.56%
Revenue beat(2)2
Avg Revenue beat(2)22.03%
Min Revenue beat(2)5.29%
Max Revenue beat(2)38.77%
Revenue beat(4)4
Avg Revenue beat(4)11.6%
Min Revenue beat(4)1.05%
Max Revenue beat(4)38.77%
Revenue beat(8)5
Avg Revenue beat(8)5.28%
Revenue beat(12)7
Avg Revenue beat(12)3.33%
Revenue beat(16)11
Avg Revenue beat(16)3.2%
PT rev (1m)26.92%
PT rev (3m)6.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)27.78%
EPS NY rev (1m)0%
EPS NY rev (3m)2.85%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)104.77%
Revenue NY rev (1m)11.48%
Revenue NY rev (3m)101.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1440 | ||
| Fwd PE | 19.52 | ||
| P/S | 3.34 | ||
| P/FCF | 125.44 | ||
| P/OCF | 43.05 | ||
| P/B | 22.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 32.93 |
EPS(TTM)0.01
EY0.07%
EPS(NY)0.74
Fwd EY5.12%
FCF(TTM)0.11
FCFY0.8%
OCF(TTM)0.33
OCFY2.32%
SpS4.31
BVpS0.63
TBVpS-2.81
PEG (NY)6.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.38% | ||
| ROE | -5.67% | ||
| ROCE | 4.95% | ||
| ROIC | 3.75% | ||
| ROICexc | 4.02% | ||
| ROICexgc | 7.53% | ||
| OM | 9.07% | ||
| PM (TTM) | N/A | ||
| GM | 55.09% | ||
| FCFM | 2.66% |
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-Score4
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.03 | ||
| Debt/FCF | 54.97 | ||
| Debt/EBITDA | 10.27 | ||
| Cap/Depr | 99.25% | ||
| Cap/Sales | 5.09% | ||
| Interest Coverage | 0.82 | ||
| Cash Conversion | 54.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 0.4 |
F-Score4
WACC8.18%
ROIC/WACC0.46
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)-99.15%
EPS 3Y-47.56%
EPS 5YN/A
EPS Q2Q%-60.87%
EPS Next Y231.5%
EPS Next 2Y121.78%
EPS Next 3Y83.93%
EPS Next 5YN/A
Revenue 1Y (TTM)41.53%
Revenue growth 3Y9.83%
Revenue growth 5Y7.55%
Sales Q2Q%120.77%
Revenue Next Year123.57%
Revenue Next 2Y53.69%
Revenue Next 3Y36.39%
Revenue Next 5YN/A
EBIT growth 1Y-59.18%
EBIT growth 3Y-24.83%
EBIT growth 5Y-11.9%
EBIT Next Year135.54%
EBIT Next 3Y41.85%
EBIT Next 5YN/A
FCF growth 1Y-74.09%
FCF growth 3Y-33.57%
FCF growth 5YN/A
OCF growth 1Y-57.47%
OCF growth 3Y-10.46%
OCF growth 5YN/A