4.76 USD
+0.1 (+2.15%)
4.799 USD
+0.04 (+0.82%)
We assign a fundamental rating of 4 out of 10 to GOGO. GOGO was compared to 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
GOGO had positive earnings in the past year.
GOGO had a positive operating cash flow in the past year.
GOGO had positive earnings in 4 of the past 5 years.
GOGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GOGO (-0.41%) is worse 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.
Looking at the Return On Invested Capital, with a value of 5.46%, GOGO is in line with its industry, outperforming 59.09% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GOGO is above the industry average of 6.45%.
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's Operating Margin of 9.26% is in line compared to the rest of the industry. GOGO outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of GOGO has declined.
GOGO has a Gross Margin (47.60%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GOGO has declined.
| 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%
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
GOGO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GOGO has an improved debt to assets ratio.
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.
With a Altman-Z score value of 0.03, GOGO is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
The Debt to FCF ratio of GOGO is 24.03, which is on the high side as it means it would take GOGO, 24.03 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 24.03, GOGO is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
A Debt/Equity ratio of 7.79 is on the high side and indicates that GOGO has dependencies on debt financing.
GOGO has a Debt to Equity ratio of 7.79. This is amonst the worse of the industry: GOGO underperforms 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.79 | ||
| Debt/FCF | 24.03 | ||
| Altman-Z | 0.03 |
ROIC/WACC0.71
WACC7.71%
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.
The Current ratio of GOGO (1.74) is better than 95.45% of its industry peers.
A Quick Ratio of 1.40 indicates that GOGO should not have too much problems paying its short term obligations.
The Quick ratio of GOGO (1.40) is better than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.4 |
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%.
The earnings per share for GOGO have been decreasing by -47.56% on average. This is quite bad
The Revenue has grown by 102.05% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 7.55% on average over the past years.
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
Based on estimates for the next years, GOGO will show a very strong growth in Earnings Per Share. The EPS will grow by 68.75% on average per year.
GOGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 33.67% yearly.
EPS Next Y24.66%
EPS Next 2Y79.25%
EPS Next 3Y68.75%
EPS Next 5YN/A
Revenue Next Year123.43%
Revenue Next 2Y50.85%
Revenue Next 3Y33.67%
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
The Price/Earnings ratio is 79.33, which means the current valuation is very expensive for GOGO.
Compared to the rest of the industry, the Price/Earnings ratio of GOGO is on the same level as its industry peers.
GOGO is valuated expensively when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.88, which indicates a very decent valuation of GOGO.
GOGO's Price/Forward Earnings ratio is rather cheap when compared to the industry. GOGO is cheaper than 86.36% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, GOGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.33 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOGO is valued a bit more expensive than the industry average as 68.18% of the companies are valued more cheaply.
68.18% 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 | 18.32 | ||
| EV/EBITDA | 10.4 |
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.
GOGO's earnings are expected to grow with 68.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.22
PEG (5Y)N/A
EPS Next 2Y79.25%
EPS Next 3Y68.75%
5. Dividend
5.1 Amount
GOGO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
4.76
+0.1 (+2.15%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners61.47%
Inst Owner Change1.45%
Ins Owners0.09%
Ins Owner Change2.17%
Market Cap637.13M
Revenue(TTM)817.73M
Net Income(TTM)-5.29M
Analysts80
Price Target13.26 (178.57%)
Short Float %21.75%
Short Ratio6.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)8.39%
Min EPS beat(2)-23.27%
Max EPS beat(2)40.06%
EPS beat(4)2
Avg EPS beat(4)-226.46%
Min EPS beat(4)-929.56%
Max EPS beat(4)40.06%
EPS beat(8)5
Avg EPS beat(8)-77.14%
EPS beat(12)9
Avg EPS beat(12)-17.11%
EPS beat(16)12
Avg EPS beat(16)102.45%
Revenue beat(2)1
Avg Revenue beat(2)-0.34%
Min Revenue beat(2)-1.36%
Max Revenue beat(2)0.67%
Revenue beat(4)3
Avg Revenue beat(4)10.84%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)38.77%
Revenue beat(8)6
Avg Revenue beat(8)6.38%
Revenue beat(12)6
Avg Revenue beat(12)3.01%
Revenue beat(16)10
Avg Revenue beat(16)2.63%
PT rev (1m)-7.14%
PT rev (3m)-20%
EPS NQ rev (1m)-75%
EPS NQ rev (3m)-75%
EPS NY rev (1m)-38.89%
EPS NY rev (3m)-42.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.84%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.33 | ||
| Fwd PE | 9.88 | ||
| P/S | 0.78 | ||
| P/FCF | 18.32 | ||
| P/OCF | 8.2 | ||
| P/B | 5.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.4 |
EPS(TTM)0.06
EY1.26%
EPS(NY)0.48
Fwd EY10.13%
FCF(TTM)0.26
FCFY5.46%
OCF(TTM)0.58
OCFY12.19%
SpS6.11
BVpS0.8
TBVpS-2.55
PEG (NY)3.22
PEG (5Y)N/A
Graham Number1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.41% | ||
| ROE | -4.95% | ||
| ROCE | 7.2% | ||
| ROIC | 5.46% | ||
| ROICexc | 6.26% | ||
| ROICexgc | 12.23% | ||
| OM | 9.26% | ||
| PM (TTM) | N/A | ||
| GM | 47.6% | ||
| FCFM | 4.25% |
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-Score5
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.79 | ||
| Debt/FCF | 24.03 | ||
| Debt/EBITDA | 6.54 | ||
| Cap/Depr | 82.96% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | 1.04 | ||
| Cash Conversion | 60.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 0.03 |
F-Score5
WACC7.71%
ROIC/WACC0.71
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)-87.5%
EPS 3Y-47.56%
EPS 5YN/A
EPS Q2Q%-23.08%
EPS Next Y24.66%
EPS Next 2Y79.25%
EPS Next 3Y68.75%
EPS Next 5YN/A
Revenue 1Y (TTM)102.05%
Revenue growth 3Y9.83%
Revenue growth 5Y7.55%
Sales Q2Q%122.41%
Revenue Next Year123.43%
Revenue Next 2Y50.85%
Revenue Next 3Y33.67%
Revenue Next 5YN/A
EBIT growth 1Y-24.49%
EBIT growth 3Y-24.83%
EBIT growth 5Y-11.9%
EBIT Next Year137.38%
EBIT Next 3Y38.96%
EBIT Next 5YN/A
FCF growth 1Y-37.45%
FCF growth 3Y-33.57%
FCF growth 5YN/A
OCF growth 1Y-7.87%
OCF growth 3Y-10.46%
OCF growth 5YN/A
GOGO INC / GOGO FAQ
Can you provide the ChartMill fundamental rating for GOGO INC?
ChartMill assigns a fundamental rating of 4 / 10 to GOGO.
What is the valuation status for 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 4 / 10.
How financially healthy is GOGO INC?
The financial health rating of GOGO INC (GOGO) is 3 / 10.