GOGO INC (GOGO)
US38046C1099 - Common Stock
We assign a fundamental rating of 5 out of 10 to GOGO. GOGO was compared to 22 industry peers in the Wireless Telecommunication Services industry. GOGO scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, GOGO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
GOGO had positive earnings in the past year.
In the past year GOGO had a positive cash flow from operations.
In multiple years GOGO reported negative net income over the last 5 years.
GOGO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
GOGO's Return On Assets of 18.63% is amongst the best of the industry. GOGO outperforms 95.24% of its industry peers.
The Return On Equity of GOGO (357.44%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.22%, GOGO belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GOGO is significantly above the industry average of 7.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.63% | ||
| ROE | 357.44% | ||
| ROIC | 15.22% |
ROA(3y)18.11%
ROA(5y)1.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.82%
ROIC(5y)18.69%
1.3 Margins
GOGO's Profit Margin of 36.62% is amongst the best of the industry. GOGO outperforms 100.00% of its industry peers.
With an excellent Operating Margin value of 31.21%, GOGO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of GOGO has grown nicely.
GOGO has a Gross Margin of 66.58%. This is amongst the best in the industry. GOGO outperforms 80.95% of its industry peers.
In the last couple of years the Gross Margin of GOGO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.21% | ||
| PM (TTM) | 36.62% | ||
| GM | 66.58% |
OM growth 3Y3.31%
OM growth 5Y1.9%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.05%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
GOGO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GOGO has been increased compared to 1 year ago.
GOGO has more shares outstanding than it did 5 years ago.
GOGO has a better debt/assets ratio than last year.
2.2 Solvency
GOGO has an Altman-Z score of 0.14. This is a bad value and indicates that GOGO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GOGO (0.14) is worse than 76.19% of its industry peers.
GOGO has a debt to FCF ratio of 10.84. This is a negative value and a sign of low solvency as GOGO would need 10.84 years to pay back of all of its debts.
GOGO has a Debt to FCF ratio (10.84) which is in line with its industry peers.
A Debt/Equity ratio of 14.43 is on the high side and indicates that GOGO has dependencies on debt financing.
With a Debt to Equity ratio value of 14.43, GOGO is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.43 | ||
| Debt/FCF | 10.84 | ||
| Altman-Z | 0.14 |
ROIC/WACC1.65
WACC9.25%
2.3 Liquidity
A Current Ratio of 4.37 indicates that GOGO has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.37, GOGO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 3.49 indicates that GOGO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.49, GOGO belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.37 | ||
| Quick Ratio | 3.49 |
3. Growth
3.1 Past
GOGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.52%, which is quite impressive.
GOGO shows a decrease in Revenue. In the last year, the revenue decreased by -1.63%.
Measured over the past years, GOGO shows a small growth in Revenue. The Revenue has been growing by 6.50% on average per year.
EPS 1Y (TTM)53.52%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-47.62%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y13.81%
Revenue growth 5Y6.5%
Revenue growth Q2Q-9.6%
3.2 Future
The Earnings Per Share is expected to decrease by -10.16% on average over the next years. This is quite bad
The Revenue is expected to grow by 11.35% on average over the next years. This is quite good.
EPS Next Y-69.12%
EPS Next 2Y-26.33%
EPS Next 3Y-10.16%
EPS Next 5YN/A
Revenue Next Year4.9%
Revenue Next 2Y10.94%
Revenue Next 3Y11.35%
Revenue Next 5YN/A
3.3 Evolution
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 8.06, which indicates a very decent valuation of GOGO.
GOGO's Price/Earnings ratio is rather cheap when compared to the industry. GOGO is cheaper than 90.48% of the companies in the same industry.
GOGO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.20.
With a Price/Forward Earnings ratio of 26.11, GOGO can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, GOGO is valued a bit more expensive than 76.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, GOGO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.06 | ||
| Fwd PE | 26.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOGO indicates a rather expensive valuation: GOGO more expensive than 80.95% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GOGO is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.51 | ||
| EV/EBITDA | 11.18 |
4.3 Compensation for Growth
The excellent profitability rating of GOGO may justify a higher PE ratio.
GOGO's earnings are expected to decrease with -10.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-26.33%
EPS Next 3Y-10.16%
5. Dividend
5.1 Amount
No dividends for GOGO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GOGO INC
NASDAQ:GOGO (4/25/2024, 7:00:01 PM)
After market: 8.79 0 (0%)8.79
+0.06 (+0.69%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.06 | ||
| Fwd PE | 26.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.63% | ||
| ROE | 357.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.21% | ||
| PM (TTM) | 36.62% | ||
| GM | 66.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.37 | ||
| Quick Ratio | 3.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)53.52%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-69.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y13.81%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y