GOGO INC (GOGO) Stock Fundamental Analysis
NASDAQ:GOGO - Nasdaq - US38046C1099 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to GOGO. GOGO was compared to 21 industry peers in the Wireless Telecommunication Services industry. While GOGO is still in line with the averages on profitability rating, there are 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.
GOGO had positive earnings in 4 of the past 5 years.
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 has a worse Return On Equity (-5.67%) than 76.19% of its industry peers.
With a Return On Invested Capital value of 3.75%, GOGO perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GOGO is above the industry average of 6.34%.
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.
The Operating Margin of GOGO (9.07%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GOGO has declined.
The Gross Margin of GOGO (55.09%) is comparable to the rest of the industry.
GOGO's Gross Margin has declined in the last couple of years.
| 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.
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 0.47. This is a bad value and indicates that GOGO is not financially healthy and even has some risk of bankruptcy.
GOGO's Altman-Z score of 0.47 is on the low side compared to the rest of the industry. GOGO is outperformed by 71.43% of its industry peers.
GOGO has a debt to FCF ratio of 54.97. This is a negative value and a sign of low solvency as GOGO would need 54.97 years to pay back of all of its debts.
The Debt to FCF ratio of GOGO (54.97) is worse than 76.19% 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 | 0.47 |
ROIC/WACC0.45
WACC8.27%
2.3 Liquidity
A Current Ratio of 1.84 indicates that GOGO should not have too much problems paying its short term obligations.
GOGO has a Current ratio of 1.84. This is amongst the best in the industry. GOGO outperforms 100.00% of its industry peers.
GOGO has a Quick Ratio of 1.36. This is a normal value and indicates that GOGO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.36, GOGO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for GOGO have decreased strongly by -99.15% in the last year.
The earnings per share for GOGO have been decreasing by -47.56% on average. This is quite bad
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
The Earnings Per Share is expected to grow by 83.93% on average over the next years. This is a very strong growth
Based on estimates for the next years, GOGO will show a very strong growth in Revenue. The Revenue will grow by 36.39% on average per year.
EPS Next Y199.2%
EPS Next 2Y132.87%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 1555.00, GOGO can be considered very expensive at the moment.
76.19% of the companies in the same industry are cheaper than GOGO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.52, GOGO is valued quite expensively.
A Price/Forward Earnings ratio of 19.12 indicates a rather expensive valuation of GOGO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOGO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of GOGO to the average of the S&P500 Index (35.58), we can say GOGO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1555 | ||
| Fwd PE | 19.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOGO is valued a bit more expensive than 76.19% of the companies in the same industry.
GOGO's Price/Free Cash Flow 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 135.46 | ||
| EV/EBITDA | 34.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GOGO's earnings are expected to grow with 83.93% in the coming years.
PEG (NY)7.81
PEG (5Y)N/A
EPS Next 2Y132.87%
EPS Next 3Y83.93%
5. Dividend
5.1 Amount
No dividends for GOGO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.55
+0.15 (+0.97%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners58.51%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner Change0.24%
Market Cap2.06B
Analysts80
Price Target16.83 (8.23%)
Short Float %31.39%
Short Ratio10.24
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)0%
PT rev (3m)26.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.12%
EPS NY rev (1m)-9.74%
EPS NY rev (3m)-8.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)13.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1555 | ||
| Fwd PE | 19.12 | ||
| P/S | 3.6 | ||
| P/FCF | 135.46 | ||
| P/OCF | 46.49 | ||
| P/B | 24.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.56 |
EPS(TTM)0.01
EY0.06%
EPS(NY)0.81
Fwd EY5.23%
FCF(TTM)0.11
FCFY0.74%
OCF(TTM)0.33
OCFY2.15%
SpS4.31
BVpS0.63
TBVpS-2.81
PEG (NY)7.81
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 | 0.47 |
F-Score4
WACC8.27%
ROIC/WACC0.45
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 Y199.2%
EPS Next 2Y132.87%
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