GOGO INC (GOGO) Stock Fundamental Analysis
USA - NASDAQ:GOGO - US38046C1099 - Common Stock
9.77 USD
+0.12 (+1.24%)
9.8999 USD
+0.13 (+1.33%)
GOGO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 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. GOGO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GOGO was profitable.
In the past year GOGO had a positive cash flow from operations.
GOGO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years GOGO had a positive operating cash flow.
1.2 Ratios
GOGO's Return On Assets of 0.58% is in line compared to the rest of the industry. GOGO outperforms 45.45% of its industry peers.
Looking at the Return On Equity, with a value of 7.07%, GOGO is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Return On Invested Capital of GOGO (4.83%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for GOGO is significantly above the industry average of 5.84%.
The last Return On Invested Capital (4.83%) 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 | 0.58% | ||
| 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
GOGO has a Profit Margin of 1.05%. This is comparable to the rest of the industry: GOGO outperforms 50.00% of its industry peers.
GOGO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.51%, GOGO is in line with its industry, outperforming 54.55% of the companies in the same industry.
In the last couple of years the Operating Margin of GOGO has declined.
GOGO has a Gross Margin of 51.04%. This is comparable 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GOGO 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.
The debt/assets ratio for GOGO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.24, 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 0.24, GOGO is doing worse than 77.27% of the companies in the same industry.
GOGO has a debt to FCF ratio of 30.33. This is a negative value and a sign of low solvency as GOGO would need 30.33 years to pay back of all of its debts.
GOGO's Debt to FCF ratio of 30.33 is on the low side compared to the rest of the industry. GOGO is outperformed by 77.27% of its industry peers.
GOGO has a Debt/Equity ratio of 8.10. This is a high value indicating a heavy dependency on external 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 | 0.24 |
ROIC/WACC0.63
WACC7.7%
2.3 Liquidity
A Current Ratio of 1.71 indicates that GOGO should not have too much problems paying its short term obligations.
The Current ratio of GOGO (1.71) is better than 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.
Looking at the Quick ratio, with a value of 1.32, GOGO is in the better half of 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%.
Measured over the past years, GOGO shows a small growth in Revenue. The Revenue has been growing by 7.55% on average per year.
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
Based on estimates for the next years, GOGO will show a very strong growth in Earnings Per Share. The EPS will grow by 78.58% on average per year.
Based on estimates for the next years, GOGO will show a very strong growth in Revenue. The Revenue will grow by 34.72% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
GOGO is valuated quite expensively with a Price/Earnings ratio of 108.56.
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.
When comparing the Price/Earnings ratio of GOGO to the average of the S&P500 Index (26.91), we can say GOGO is valued expensively.
Based on the Price/Forward Earnings ratio of 16.46, the valuation of GOGO can be described as correct.
GOGO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of GOGO to the average of the S&P500 Index (22.92), we can say GOGO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 108.56 | ||
| Fwd PE | 16.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOGO is valued a bit more expensive than the industry average as 77.27% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, GOGO is valued a bit more expensive than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.44 | ||
| EV/EBITDA | 18.98 |
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.
A more expensive valuation may be justified as GOGO's earnings are expected to grow with 78.58% in the coming years.
PEG (NY)0.93
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 |
9.77
+0.12 (+1.24%)
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 Cap1.31B
Revenue(TTM)694.67M
Net Income(TTM)7.27M
Analysts78.18
Price Target16.58 (69.7%)
Short Float %26.62%
Short Ratio11.44
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 | 108.56 | ||
| Fwd PE | 16.46 | ||
| P/S | 1.88 | ||
| P/FCF | 47.44 | ||
| P/OCF | 23.32 | ||
| P/B | 12.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.98 |
EPS(TTM)0.09
EY0.92%
EPS(NY)0.59
Fwd EY6.08%
FCF(TTM)0.21
FCFY2.11%
OCF(TTM)0.42
OCFY4.29%
SpS5.2
BVpS0.77
TBVpS-2.64
PEG (NY)0.93
PEG (5Y)N/A
Graham Number1.25
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%
ROICexgc growth 3Y-41%
ROICexgc 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 | 0.24 |
F-Score6
WACC7.7%
ROIC/WACC0.63
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
GOGO INC / GOGO FAQ
What is the fundamental rating for GOGO stock?
ChartMill assigns a fundamental rating of 4 / 10 to GOGO.
What is the valuation status of GOGO INC (GOGO) stock?
ChartMill assigns a valuation rating of 3 / 10 to GOGO INC (GOGO). This can be considered as Overvalued.
What is the profitability of GOGO stock?
GOGO INC (GOGO) has a profitability rating of 5 / 10.
What are the PE and PB ratios of GOGO INC (GOGO) stock?
The Price/Earnings (PE) ratio for GOGO INC (GOGO) is 108.56 and the Price/Book (PB) ratio is 12.71.
Can you provide the expected EPS growth for GOGO stock?
The Earnings per Share (EPS) of GOGO INC (GOGO) is expected to grow by 116.24% in the next year.