GOGO INC (GOGO) Stock Fundamental Analysis
USA - NASDAQ:GOGO - US38046C1099 - Common Stock
8.88 USD
-0.13 (-1.44%)
8.98 USD
+0.1 (+1.13%)
Overall GOGO gets a fundamental rating of 4 out of 10. We evaluated GOGO 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. 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.
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
With a Return On Assets value of 0.58%, GOGO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Return On Equity of GOGO (7.07%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.83%, GOGO is in line with its industry, outperforming 50.00% 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 6.09%.
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
The Profit Margin of GOGO (1.05%) is comparable to the rest of the industry.
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.
GOGO's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 51.04%, GOGO perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
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
Compared to 5 years ago, GOGO has more shares outstanding
Compared to 1 year ago, GOGO has an improved debt to assets ratio.
2.2 Solvency
GOGO has an Altman-Z score of 0.20. This is a bad value and indicates that GOGO is not financially healthy and even has some risk of bankruptcy.
GOGO has a worse Altman-Z score (0.20) than 68.18% of its industry peers.
The Debt to FCF ratio of GOGO is 30.33, which is on the high side as it means it would take GOGO, 30.33 years of fcf income to pay off all of its debts.
GOGO has a Debt to FCF ratio of 30.33. This is in the lower half of the industry: GOGO underperforms 72.73% 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.
The Debt to Equity ratio of GOGO (8.10) is worse than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.1 | ||
| Debt/FCF | 30.33 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.63
WACC7.72%
2.3 Liquidity
A Current Ratio of 1.71 indicates that GOGO should not have too much problems paying its short term obligations.
GOGO has a better Current ratio (1.71) than 72.73% of its industry peers.
A Quick Ratio of 1.32 indicates that GOGO should not have too much problems paying its short term obligations.
GOGO has a better Quick ratio (1.32) than 68.18% of its industry peers.
| 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%.
The earnings per share for GOGO have been decreasing by -47.56% on average. This is quite bad
Looking at the last year, GOGO shows a very strong growth in Revenue. The Revenue has grown by 72.77%.
GOGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.55% yearly.
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
GOGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 78.58% yearly.
Based on estimates for the next years, GOGO will show a very strong growth in Revenue. The Revenue will grow by 36.26% on average per year.
EPS Next Y122.7%
EPS Next 2Y98.94%
EPS Next 3Y78.58%
EPS Next 5YN/A
Revenue Next Year124.05%
Revenue Next 2Y53.24%
Revenue Next 3Y36.26%
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.
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 98.67, which means the current valuation is very expensive for GOGO.
72.73% of the companies in the same industry are cheaper than GOGO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.38. GOGO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 14.96, 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 (22.86), we can say GOGO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.67 | ||
| Fwd PE | 14.96 |
4.2 Price Multiples
GOGO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GOGO is more expensive than 77.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GOGO is valued a bit more expensive than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.11 | ||
| EV/EBITDA | 18.18 |
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)0.8
PEG (5Y)N/A
EPS Next 2Y98.94%
EPS Next 3Y78.58%
5. Dividend
5.1 Amount
No dividends for GOGO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.88
-0.13 (-1.44%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners60.94%
Inst Owner Change-6.33%
Ins Owners0.09%
Ins Owner Change0.13%
Market Cap1.19B
Analysts78.18
Price Target16.58 (86.71%)
Short Float %23.9%
Short Ratio11.33
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)-1.52%
PT rev (3m)-1.52%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)-30.91%
EPS NY rev (1m)-25.57%
EPS NY rev (3m)-32.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.67 | ||
| Fwd PE | 14.96 | ||
| P/S | 1.71 | ||
| P/FCF | 43.11 | ||
| P/OCF | 21.2 | ||
| P/B | 11.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.18 |
EPS(TTM)0.09
EY1.01%
EPS(NY)0.59
Fwd EY6.69%
FCF(TTM)0.21
FCFY2.32%
OCF(TTM)0.42
OCFY4.72%
SpS5.2
BVpS0.77
TBVpS-2.64
PEG (NY)0.8
PEG (5Y)N/A
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%
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-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 | 0.2 |
F-Score6
WACC7.72%
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 Y122.7%
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 Year124.05%
Revenue Next 2Y53.24%
Revenue Next 3Y36.26%
Revenue Next 5YN/A
EBIT growth 1Y-42.32%
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-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