Overall GOGO gets a fundamental rating of 4 out of 10. We evaluated GOGO against 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. While showing a medium growth rate, GOGO is valued expensive at the moment.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

GOGO had positive earnings in the past year.
GOGO had a positive operating cash flow in the past year.
Of the past 5 years GOGO 4 years were profitable.
GOGO had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

GOGO has a worse Return On Assets (-0.41%) than 72.73% of its industry peers.
With a Return On Equity value of -4.95%, GOGO is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
GOGO has a Return On Invested Capital (5.46%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for GOGO is above the industry average of 6.55%.
The 3 year average ROIC (10.98%) for GOGO is well above the current ROIC(5.46%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	-0.41%
ROE	-4.95%
ROIC	5.46%

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

GOGO's Profit Margin has declined in the last couple of years.
GOGO has a Operating Margin (9.26%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GOGO has declined.
GOGO has a Gross Margin (47.60%) which is in line with its industry peers.
GOGO's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	9.26%
PM (TTM)	N/A
GM	47.6%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
Compared to 5 years ago, GOGO has more shares outstanding
GOGO has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.03, we must say that GOGO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.03, GOGO is doing worse than 77.27% of the companies in the same industry.
GOGO has a debt to FCF ratio of 24.03. This is a negative value and a sign of low solvency as GOGO would need 24.03 years to pay back of all of its debts.
GOGO's Debt to FCF ratio of 24.03 is on the low side compared to the rest of the industry. GOGO is outperformed by 68.18% of its industry peers.
A Debt/Equity ratio of 7.79 is on the high side and indicates that GOGO has dependencies on debt financing.
With a Debt to Equity ratio value of 7.79, GOGO is not doing good in the industry: 86.36% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	7.79
Debt/FCF	24.03
Altman-Z	0.03

ROIC/WACC0.65

WACC8.35%

2.3 Liquidity

GOGO has a Current Ratio of 1.74. This is a normal value and indicates that GOGO is financially healthy and should not expect problems in meeting its short term obligations.
GOGO's Current ratio of 1.74 is amongst the best of the industry. GOGO outperforms 90.91% of its industry peers.
GOGO has a Quick Ratio of 1.40. This is a normal value and indicates that GOGO is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.40, GOGO belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.74
Quick Ratio	1.4

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

GOGO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -87.50%.
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 102.05%.
GOGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.55% yearly.

EPS 1Y (TTM)-87.5%

EPS 3Y-47.56%

EPS 5YN/A

EPS Q2Q%-23.08%

Revenue 1Y (TTM)102.05%

Revenue growth 3Y9.83%

Revenue growth 5Y7.55%

Sales Q2Q%122.41%

3.2 Future

The Earnings Per Share is expected to grow by 62.41% 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 32.56% on average per year.

EPS Next Y22.4%

EPS Next 2Y72.97%

EPS Next 3Y62.41%

EPS Next 5YN/A

Revenue Next Year123.21%

Revenue Next 2Y50.08%

Revenue Next 3Y32.56%

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 76.50 indicates a quite expensive valuation of GOGO.
The rest of the industry has a similar Price/Earnings ratio as GOGO.
GOGO is valuated expensively when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
GOGO is valuated reasonably with a Price/Forward Earnings ratio of 10.23.
GOGO's Price/Forward Earnings ratio is rather cheap when compared to the industry. GOGO is cheaper than 81.82% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, GOGO is valued rather cheaply.

		Industry Rank	Sector Rank
PE	76.5
Fwd PE	10.23

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GOGO is valued a bit more expensive than 63.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GOGO is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.

		Industry Rank	Sector Rank
P/FCF	17.67
EV/EBITDA	10.28

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GOGO does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as GOGO's earnings are expected to grow with 62.41% in the coming years.