4.535 USD
-0.14 (-3.1%)
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. GOGO is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- 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 -0.41%, GOGO is doing worse than 72.73% of the companies in the same industry.
- Looking at the Return On Equity, with a value of -4.95%, GOGO is doing worse than 77.27% of the companies in the same industry.
- GOGO's Return On Invested Capital of 5.46% is in line compared 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 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
- GOGO's Profit Margin has declined in the last couple of years.
- The Operating Margin of GOGO (9.26%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of GOGO has declined.
- Looking at the Gross Margin, with a value of 47.60%, GOGO is in line with its industry, outperforming 40.91% 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 | 9.26% | ||
| 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.
- GOGO has more shares outstanding than it did 1 year ago.
- GOGO has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for GOGO has been reduced compared to a year ago.
2.2 Solvency
- GOGO has an Altman-Z score of 0.03. This is a bad value and indicates that GOGO is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.03, GOGO is doing worse than 77.27% of the companies in the same industry.
- GOGO has a debt to FCF ratio of 24.03. This is a negative value and a sign of low solvency as GOGO would need 24.03 years to pay back of all of its debts.
- GOGO has a worse Debt to FCF ratio (24.03) than 68.18% of its industry peers.
- A Debt/Equity ratio of 7.79 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 7.79, GOGO is doing worse than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.79 | ||
| Debt/FCF | 24.03 | ||
| Altman-Z | 0.03 |
ROIC/WACC0.65
WACC8.34%
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.
- GOGO's Current ratio of 1.74 is amongst the best of the industry. GOGO outperforms 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 has a better Quick ratio (1.40) than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
- The earnings per share for GOGO have decreased strongly by -87.50% in the last year.
- The earnings per share for GOGO have been decreasing by -47.56% on average. This is quite bad
- GOGO shows a strong growth in Revenue. In the last year, the Revenue has grown by 102.05%.
- 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
- GOGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 62.41% yearly.
- GOGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 32.56% yearly.
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.
- 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 75.58, which means the current valuation is very expensive for GOGO.
- GOGO's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of GOGO to the average of the S&P500 Index (28.82), we can say GOGO is valued expensively.
- The Price/Forward Earnings ratio is 10.10, which indicates a very decent valuation of GOGO.
- Based on the Price/Forward Earnings ratio, GOGO is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
- GOGO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.58 | ||
| Fwd PE | 10.1 |
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 63.64% of the companies listed in the same industry.
- 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 | 17.46 | ||
| EV/EBITDA | 10.42 |
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.
- A more expensive valuation may be justified as GOGO's earnings are expected to grow with 62.41% in the coming years.
PEG (NY)3.37
PEG (5Y)N/A
EPS Next 2Y72.97%
EPS Next 3Y62.41%
5. Dividend
5.1 Amount
- GOGO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.