Taking everything into account, GOGO scores 4 out of 10 in our fundamental rating. 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. 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

In the past year GOGO was profitable.
In the past year GOGO had a positive cash flow from operations.
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's Return On Assets of -0.41% is on the low side compared to the rest of the industry. GOGO is outperformed by 72.73% of its industry peers.
GOGO has a Return On Equity of -4.95%. This is in the lower half of the industry: GOGO underperforms 77.27% of its industry peers.
GOGO has a Return On Invested Capital of 5.46%. This is comparable to the rest of the industry: GOGO outperforms 59.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GOGO is above the industry average of 6.55%.
The last Return On Invested Capital (5.46%) 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	-0.41%
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

In the last couple of years the Profit Margin of GOGO has declined.
GOGO has a Operating Margin of 9.26%. This is comparable to the rest of the industry: GOGO outperforms 54.55% of its industry peers.
GOGO's Operating Margin has declined in the last couple of years.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GOGO is still 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.
GOGO's Altman-Z score of 0.03 is on the low side compared to the rest of the industry. GOGO is outperformed by 77.27% of its industry peers.
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.
The Debt to FCF ratio of GOGO (24.03) is worse than 68.18% of its industry peers.
GOGO has a Debt/Equity ratio of 7.79. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GOGO (7.79) is worse than 86.36% of its industry peers.

		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.
The Current ratio of GOGO (1.74) is better than 90.91% of its industry peers.
A Quick Ratio of 1.40 indicates that GOGO should not have too much problems paying its short term obligations.
GOGO's Quick ratio of 1.40 is amongst the best of the industry. GOGO outperforms 86.36% of its industry peers.

		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%.
GOGO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -47.56% yearly.
Looking at the last year, GOGO shows a very strong growth in Revenue. The Revenue has grown by 102.05%.
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)-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

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 75.67 indicates a quite expensive valuation of GOGO.
The rest of the industry has a similar Price/Earnings ratio as GOGO.
The average S&P500 Price/Earnings ratio is at 28.60. GOGO is valued rather expensively when compared to this.
GOGO is valuated reasonably with a Price/Forward Earnings ratio of 10.12.
72.73% of the companies in the same industry are more expensive than GOGO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, GOGO is valued rather cheaply.

		Industry Rank	Sector Rank
PE	75.67
Fwd PE	10.12

4.2 Price Multiples

63.64% of the companies in the same industry are cheaper than GOGO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GOGO is valued a bit more expensive than the industry average as 68.18% of the companies are valued more cheaply.

		Industry Rank	Sector Rank
P/FCF	17.47
EV/EBITDA	10.42

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 62.41% in the coming years.