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. GOGO is valied quite expensively at the moment, while it does show a decent growth rate.

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.
GOGO had a positive operating cash flow in the past year.
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 has a Return On Assets of -0.41%. This is in the lower half of the industry: GOGO underperforms 72.73% of its industry peers.
With a Return On Equity value of -4.95%, GOGO is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
GOGO has a Return On Invested Capital (5.46%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for GOGO is above the industry average of 6.55%.
The 3 year average ROIC (10.98%) for GOGO is well above the current ROIC(5.46%). The reason for the recent decline needs to be investigated.

		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 (9.26%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GOGO has declined.
The Gross Margin of GOGO (47.60%) is comparable to the rest of the industry.
GOGO's Gross Margin has declined in the last couple of years.

		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

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.
GOGO has more shares outstanding than it did 5 years ago.
GOGO has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.05, we must say that GOGO is in the distress zone and has some risk of bankruptcy.
GOGO has a Altman-Z score of 0.05. This is in the lower half of the industry: GOGO underperforms 77.27% of its industry peers.
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.
GOGO has a Debt/Equity ratio of 7.79. This is a high value indicating a heavy dependency on external 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	0.05

ROIC/WACC0.61

WACC8.98%

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.
With an excellent Current ratio value of 1.74, GOGO belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that GOGO should not have too much problems paying its short term obligations.
The Quick ratio of GOGO (1.40) is better than 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

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
Looking at the last year, GOGO shows a very strong growth in Revenue. The Revenue has grown by 102.05%.
GOGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.55% yearly.

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
The Revenue is expected to grow by 32.56% on average over the next years. This is a very strong growth

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

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 81.50, which means the current valuation is very expensive for GOGO.
Compared to the rest of the industry, the Price/Earnings ratio of GOGO is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.21. GOGO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 10.90, the valuation of GOGO can be described as reasonable.
GOGO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GOGO is cheaper than 72.73% of the companies in the same industry.
GOGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	81.5
Fwd PE	10.9

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 68.18% of the companies listed in the same industry.
72.73% 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	18.82
EV/EBITDA	10.65

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 62.41% in the coming years. This may justify a more expensive valuation.