GOGO INC (GOGO) Stock Fundamental Analysis
USA - NASDAQ:GOGO - US38046C1099 - Common Stock
7.645 USD
+0.03 (+0.39%)
7.64 USD
0 (-0.07%)
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. 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.
1. Profitability
1.1 Basic Checks
GOGO had positive earnings in the past year.
In the past year GOGO had a positive cash flow from operations.
GOGO had positive earnings in 4 of the past 5 years.
In the past 5 years GOGO always reported a positive cash flow from operatings.
1.2 Ratios
GOGO has a Return On Assets (0.58%) which is comparable to the rest of the industry.
GOGO has a Return On Equity (7.07%) which is in line with its industry peers.
GOGO has a Return On Invested Capital of 4.83%. This is comparable to the rest of the industry: GOGO outperforms 59.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOGO is significantly above the industry average of 5.80%.
The 3 year average ROIC (10.98%) for GOGO is well above the current ROIC(4.83%). The reason for the recent decline needs to be investigated.
| 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.
In the last couple of years the Profit Margin of GOGO has declined.
The Operating Margin of GOGO (9.51%) is comparable to the rest of the industry.
GOGO's Operating Margin has declined in the last couple of years.
GOGO has a Gross Margin (51.04%) which is in line with its industry peers.
In the last couple of years the Gross Margin of GOGO has declined.
| 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
GOGO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for GOGO has been increased compared to 1 year ago.
Compared to 5 years ago, GOGO has more shares outstanding
The debt/assets ratio for GOGO has been reduced compared to a year ago.
2.2 Solvency
GOGO has an Altman-Z score of 0.10. This is a bad value and indicates that GOGO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.10, 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 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.
The Debt to FCF ratio of GOGO (30.33) is worse than 77.27% of its industry peers.
A Debt/Equity ratio of 8.10 is on the high side and indicates that GOGO has dependencies on debt financing.
With a Debt to Equity ratio value of 8.10, 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 | 8.1 | ||
| Debt/FCF | 30.33 | ||
| Altman-Z | 0.1 |
ROIC/WACC0.56
WACC8.63%
2.3 Liquidity
GOGO has a Current Ratio of 1.71. This is a normal value and indicates that GOGO is financially healthy and should not expect problems in meeting its short term obligations.
GOGO has a Current ratio of 1.71. This is in the better half of the industry: GOGO outperforms 77.27% of its industry peers.
GOGO has a Quick Ratio of 1.32. This is a normal value and indicates that GOGO is financially healthy and should not expect problems in meeting 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 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for GOGO have decreased strongly by -87.50% in the last year.
GOGO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -47.56% yearly.
The Revenue has grown by 11.85% in the past year. This is quite good.
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)11.85%
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 77.09% on average per year.
GOGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 34.72% yearly.
EPS Next Y104%
EPS Next 2Y94.27%
EPS Next 3Y77.09%
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.
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 127.42, which means the current valuation is very expensive for GOGO.
GOGO's Price/Earnings 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.
The average S&P500 Price/Earnings ratio is at 25.83. GOGO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 13.50, the valuation of GOGO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOGO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 32.68. GOGO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 127.42 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOGO indicates a slightly more expensive valuation: GOGO is more expensive than 72.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GOGO is valued a bit more expensive than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.12 | ||
| EV/EBITDA | 16.43 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GOGO's earnings are expected to grow with 77.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.23
PEG (5Y)N/A
EPS Next 2Y94.27%
EPS Next 3Y77.09%
5. Dividend
5.1 Amount
No dividends for GOGO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.645
+0.03 (+0.39%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners59.65%
Inst Owner Change0.92%
Ins Owners0.1%
Ins Owner Change-0.41%
Market Cap1.02B
Revenue(TTM)444.71M
Net Income(TTM)7.27M
Analysts80
Price Target16.58 (116.87%)
Short Float %25.79%
Short Ratio11.08
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)-5.66%
EPS NY rev (3m)-31.82%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 127.42 | ||
| Fwd PE | 13.5 | ||
| P/S | 1.47 | ||
| P/FCF | 37.12 | ||
| P/OCF | 18.25 | ||
| P/B | 9.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.43 |
EPS(TTM)0.06
EY0.78%
EPS(NY)0.57
Fwd EY7.4%
FCF(TTM)0.21
FCFY2.69%
OCF(TTM)0.42
OCFY5.48%
SpS5.2
BVpS0.77
TBVpS-2.64
PEG (NY)1.23
PEG (5Y)N/A
Graham Number1.02
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 | 0.1 |
F-Score6
WACC8.63%
ROIC/WACC0.56
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 Y104%
EPS Next 2Y94.27%
EPS Next 3Y77.09%
EPS Next 5YN/A
Revenue 1Y (TTM)11.85%
Revenue growth 3Y9.83%
Revenue growth 5Y7.55%
Sales Q2Q%122.41%
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 127.42 and the Price/Book (PB) ratio is 9.94.
Can you provide the expected EPS growth for GOGO stock?
The Earnings per Share (EPS) of GOGO INC (GOGO) is expected to grow by 104% in the next year.