GOGO INC (GOGO) Stock Fundamental Analysis
NASDAQ:GOGO - Nasdaq - US38046C1099 - Common Stock - Currency: USD
Taking everything into account, GOGO scores 3 out of 10 in our fundamental rating. GOGO was compared to 21 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 valied quite expensively at the moment, while 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.
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
Looking at the Return On Assets, with a value of -0.38%, GOGO is doing worse than 71.43% of the companies in the same industry.
With a Return On Equity value of -5.67%, GOGO is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.75%, GOGO is in line with its industry, outperforming 47.62% of the companies in the same industry.
GOGO had an Average Return On Invested Capital over the past 3 years of 10.98%. This is above the industry average of 6.34%.
The last Return On Invested Capital (3.75%) 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 | -0.38% | ||
| ROE | -5.67% | ||
| ROIC | 3.75% |
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.
With a Operating Margin value of 9.07%, GOGO perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
GOGO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 55.09%, GOGO is in line with its industry, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Gross Margin of GOGO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.07% | ||
| PM (TTM) | N/A | ||
| GM | 55.09% |
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.
GOGO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GOGO has been increased compared to 5 years ago.
Compared to 1 year ago, GOGO has an improved debt to assets ratio.
2.2 Solvency
GOGO has an Altman-Z score of 0.48. 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 0.48, GOGO is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
GOGO has a debt to FCF ratio of 54.97. This is a negative value and a sign of low solvency as GOGO would need 54.97 years to pay back of all of its debts.
The Debt to FCF ratio of GOGO (54.97) is worse than 76.19% of its industry peers.
A Debt/Equity ratio of 10.03 is on the high side and indicates that GOGO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 10.03, GOGO is doing worse than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.03 | ||
| Debt/FCF | 54.97 | ||
| Altman-Z | 0.48 |
ROIC/WACC0.46
WACC8.13%
2.3 Liquidity
GOGO has a Current Ratio of 1.84. 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 1.84. This is amongst the best in the industry. GOGO outperforms 100.00% of its industry peers.
GOGO has a Quick Ratio of 1.36. 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 Quick ratio of 1.36. This is in the better half of the industry: GOGO outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for GOGO have decreased strongly by -99.15% in the last year.
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 41.53%.
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)-99.15%
EPS 3Y-47.56%
EPS 5YN/A
EPS Q2Q%-60.87%
Revenue 1Y (TTM)41.53%
Revenue growth 3Y9.83%
Revenue growth 5Y7.55%
Sales Q2Q%120.77%
3.2 Future
GOGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 83.93% yearly.
GOGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 36.39% yearly.
EPS Next Y199.2%
EPS Next 2Y120.11%
EPS Next 3Y83.93%
EPS Next 5YN/A
Revenue Next Year123.57%
Revenue Next 2Y53.69%
Revenue Next 3Y36.39%
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
GOGO is valuated quite expensively with a Price/Earnings ratio of 1546.00.
Based on the Price/Earnings ratio, GOGO is valued a bit more expensive than 76.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of GOGO to the average of the S&P500 Index (27.45), we can say GOGO is valued expensively.
Based on the Price/Forward Earnings ratio of 21.27, the valuation of GOGO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOGO indicates a slightly more expensive valuation: GOGO is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. GOGO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1546 | ||
| Fwd PE | 21.27 |
4.2 Price Multiples
76.19% of the companies in the same industry are cheaper than GOGO, based on the Enterprise Value to EBITDA ratio.
76.19% 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 | 134.67 | ||
| EV/EBITDA | 34.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GOGO's earnings are expected to grow with 83.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.76
PEG (5Y)N/A
EPS Next 2Y120.11%
EPS Next 3Y83.93%
5. Dividend
5.1 Amount
No dividends for GOGO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.46
-0.02 (-0.13%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners58.51%
Inst Owner Change7.64%
Ins Owners0.17%
Ins Owner Change0.24%
Market Cap2.04B
Analysts80
Price Target16.83 (8.86%)
Short Float %31.39%
Short Ratio10.24
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)-461.3%
Min EPS beat(2)-929.56%
Max EPS beat(2)6.95%
EPS beat(4)2
Avg EPS beat(4)-213.32%
Min EPS beat(4)-929.56%
Max EPS beat(4)154.9%
EPS beat(8)6
Avg EPS beat(8)-32.9%
EPS beat(12)9
Avg EPS beat(12)-17.2%
EPS beat(16)12
Avg EPS beat(16)42.56%
Revenue beat(2)2
Avg Revenue beat(2)22.03%
Min Revenue beat(2)5.29%
Max Revenue beat(2)38.77%
Revenue beat(4)4
Avg Revenue beat(4)11.6%
Min Revenue beat(4)1.05%
Max Revenue beat(4)38.77%
Revenue beat(8)5
Avg Revenue beat(8)5.28%
Revenue beat(12)7
Avg Revenue beat(12)3.33%
Revenue beat(16)11
Avg Revenue beat(16)3.2%
PT rev (1m)26.92%
PT rev (3m)26.92%
EPS NQ rev (1m)1.47%
EPS NQ rev (3m)27.78%
EPS NY rev (1m)-9.74%
EPS NY rev (3m)-7.17%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)104.77%
Revenue NY rev (1m)11.48%
Revenue NY rev (3m)101.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1546 | ||
| Fwd PE | 21.27 | ||
| P/S | 3.58 | ||
| P/FCF | 134.67 | ||
| P/OCF | 46.22 | ||
| P/B | 24.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.69 |
EPS(TTM)0.01
EY0.06%
EPS(NY)0.73
Fwd EY4.7%
FCF(TTM)0.11
FCFY0.74%
OCF(TTM)0.33
OCFY2.16%
SpS4.31
BVpS0.63
TBVpS-2.81
PEG (NY)7.76
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.38% | ||
| ROE | -5.67% | ||
| ROCE | 4.95% | ||
| ROIC | 3.75% | ||
| ROICexc | 4.02% | ||
| ROICexgc | 7.53% | ||
| OM | 9.07% | ||
| PM (TTM) | N/A | ||
| GM | 55.09% | ||
| FCFM | 2.66% |
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-Score4
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.03 | ||
| Debt/FCF | 54.97 | ||
| Debt/EBITDA | 10.27 | ||
| Cap/Depr | 99.25% | ||
| Cap/Sales | 5.09% | ||
| Interest Coverage | 0.82 | ||
| Cash Conversion | 54.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 0.48 |
F-Score4
WACC8.13%
ROIC/WACC0.46
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)-99.15%
EPS 3Y-47.56%
EPS 5YN/A
EPS Q2Q%-60.87%
EPS Next Y199.2%
EPS Next 2Y120.11%
EPS Next 3Y83.93%
EPS Next 5YN/A
Revenue 1Y (TTM)41.53%
Revenue growth 3Y9.83%
Revenue growth 5Y7.55%
Sales Q2Q%120.77%
Revenue Next Year123.57%
Revenue Next 2Y53.69%
Revenue Next 3Y36.39%
Revenue Next 5YN/A
EBIT growth 1Y-59.18%
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-74.09%
FCF growth 3Y-33.57%
FCF growth 5YN/A
OCF growth 1Y-57.47%
OCF growth 3Y-10.46%
OCF growth 5YN/A