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GOGO INC (GOGO) Stock Fundamental Analysis

NASDAQ:GOGO - Nasdaq - US38046C1099 - Common Stock - Currency: USD

8.07  +0.11 (+1.38%)

After market: 8.07 0 (0%)

Fundamental Rating

5

Overall GOGO gets a fundamental rating of 5 out of 10. We evaluated GOGO against 22 industry peers in the Wireless Telecommunication Services industry. GOGO has an excellent profitability rating, but there are some minor concerns on its financial health. GOGO has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year GOGO was profitable.
GOGO had a positive operating cash flow in the past year.
In multiple years GOGO reported negative net income over the last 5 years.
GOGO had a positive operating cash flow in 4 of the past 5 years.
GOGO Yearly Net Income VS EBIT VS OCF VS FCFGOGO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M

1.2 Ratios

GOGO has a Return On Assets of 6.96%. This is amongst the best in the industry. GOGO outperforms 90.48% of its industry peers.
GOGO has a Return On Equity of 107.02%. This is amongst the best in the industry. GOGO outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 12.23%, GOGO belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
GOGO had an Average Return On Invested Capital over the past 3 years of 18.82%. This is significantly above the industry average of 6.52%.
The last Return On Invested Capital (12.23%) for GOGO is well below the 3 year average (18.82%), which needs to be investigated, but indicates that GOGO had better years and this may not be a problem.
Industry RankSector Rank
ROA 6.96%
ROE 107.02%
ROIC 12.23%
ROA(3y)18.11%
ROA(5y)1.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.82%
ROIC(5y)18.69%
GOGO Yearly ROA, ROE, ROICGOGO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 200 300

1.3 Margins

Looking at the Profit Margin, with a value of 13.94%, GOGO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Operating Margin of GOGO (24.78%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of GOGO has grown nicely.
GOGO has a Gross Margin of 66.29%. This is amongst the best in the industry. GOGO outperforms 80.95% of its industry peers.
GOGO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 24.78%
PM (TTM) 13.94%
GM 66.29%
OM growth 3Y3.31%
OM growth 5Y1.9%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.05%
GM growth 5Y-0.45%
GOGO Yearly Profit, Operating, Gross MarginsGOGO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GOGO is creating value.
Compared to 1 year ago, GOGO has more shares outstanding
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.
GOGO Yearly Shares OutstandingGOGO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
GOGO Yearly Total Debt VS Total AssetsGOGO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B

2.2 Solvency

Based on the Altman-Z score of 0.06, we must say that GOGO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.06, 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 7.24. This is a slightly negative value and a sign of low solvency as GOGO would need 7.24 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.24, GOGO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
GOGO has a Debt/Equity ratio of 11.08. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 11.08, GOGO is doing worse than 90.48% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 11.08
Debt/FCF 7.24
Altman-Z 0.06
ROIC/WACC1.32
WACC9.3%
GOGO Yearly LT Debt VS Equity VS FCFGOGO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B

2.3 Liquidity

A Current Ratio of 3.58 indicates that GOGO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.58, GOGO belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
A Quick Ratio of 2.81 indicates that GOGO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.81, GOGO belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.58
Quick Ratio 2.81
GOGO Yearly Current Assets VS Current LiabilitesGOGO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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3

3. Growth

3.1 Past

GOGO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -59.66%.
The Revenue has decreased by -0.78% in the past year.
The Revenue has been growing slightly by 6.50% on average over the past years.
EPS 1Y (TTM)-59.66%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-18.75%
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y13.81%
Revenue growth 5Y6.5%
Sales Q2Q%2.63%

3.2 Future

GOGO is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.82% yearly.
The Revenue is expected to grow by 8.71% on average over the next years. This is quite good.
EPS Next Y-65.56%
EPS Next 2Y-33.4%
EPS Next 3Y-15.82%
EPS Next 5YN/A
Revenue Next Year2.06%
Revenue Next 2Y6.28%
Revenue Next 3Y8.71%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
GOGO Yearly Revenue VS EstimatesGOGO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
GOGO Yearly EPS VS EstimatesGOGO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 -1 -2 -3

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 16.81 indicates a correct valuation of GOGO.
Based on the Price/Earnings ratio, GOGO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
GOGO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.53.
GOGO is valuated correctly with a Price/Forward Earnings ratio of 16.69.
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 22.65. GOGO is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 16.81
Fwd PE 16.69
GOGO Price Earnings VS Forward Price EarningsGOGO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 71.43% of the companies listed in the same industry.
GOGO's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 12.44
EV/EBITDA 12.25
GOGO Per share dataGOGO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

The excellent profitability rating of GOGO may justify a higher PE ratio.
A cheap valuation may be justified as GOGO's earnings are expected to decrease with -15.82% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-33.4%
EPS Next 3Y-15.82%

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0

5. Dividend

5.1 Amount

GOGO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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GOGO INC

NASDAQ:GOGO (2/24/2025, 8:00:01 PM)

After market: 8.07 0 (0%)

8.07

+0.11 (+1.38%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)11-05 2024-11-05/bmo
Earnings (Next)02-26 2025-02-26/amc
Inst Owners58.13%
Inst Owner Change-93.01%
Ins Owners0.22%
Ins Owner Change0.02%
Market Cap1.02B
Analysts80
Price Target15.81 (95.91%)
Short Float %35.72%
Short Ratio20.26
Dividend
Industry RankSector 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)34.66%
Min EPS beat(2)-85.58%
Max EPS beat(2)154.9%
EPS beat(4)3
Avg EPS beat(4)72.17%
Min EPS beat(4)-85.58%
Max EPS beat(4)215.68%
EPS beat(8)7
Avg EPS beat(8)87.57%
EPS beat(12)10
Avg EPS beat(12)211.96%
EPS beat(16)13
Avg EPS beat(16)108.62%
Revenue beat(2)2
Avg Revenue beat(2)1.17%
Min Revenue beat(2)1.05%
Max Revenue beat(2)1.29%
Revenue beat(4)3
Avg Revenue beat(4)1.91%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)5.92%
Revenue beat(8)3
Avg Revenue beat(8)-0.91%
Revenue beat(12)7
Avg Revenue beat(12)-0.11%
Revenue beat(16)10
Avg Revenue beat(16)0.96%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-5.45%
EPS NQ rev (3m)-31.58%
EPS NY rev (1m)0%
EPS NY rev (3m)9.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
Industry RankSector Rank
PE 16.81
Fwd PE 16.69
P/S 2.51
P/FCF 12.44
P/OCF 9.58
P/B 19.25
P/tB N/A
EV/EBITDA 12.25
EPS(TTM)0.48
EY5.95%
EPS(NY)0.48
Fwd EY5.99%
FCF(TTM)0.65
FCFY8.04%
OCF(TTM)0.84
OCFY10.43%
SpS3.22
BVpS0.42
TBVpS-0.1
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 6.96%
ROE 107.02%
ROCE 14.05%
ROIC 12.23%
ROICexc 16.26%
ROICexgc 18.49%
OM 24.78%
PM (TTM) 13.94%
GM 66.29%
FCFM 20.17%
ROA(3y)18.11%
ROA(5y)1.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.82%
ROIC(5y)18.69%
ROICexc(3y)25.75%
ROICexc(5y)N/A
ROICexgc(3y)29.45%
ROICexgc(5y)N/A
ROCE(3y)21.62%
ROCE(5y)21.47%
ROICexcg growth 3YN/A
ROICexcg growth 5Y13.99%
ROICexc growth 3YN/A
ROICexc growth 5Y14.37%
OM growth 3Y3.31%
OM growth 5Y1.9%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.05%
GM growth 5Y-0.45%
F-Score5
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 11.08
Debt/FCF 7.24
Debt/EBITDA 5
Cap/Depr 147.67%
Cap/Sales 6%
Interest Coverage 1.76
Cash Conversion 90.72%
Profit Quality 144.66%
Current Ratio 3.58
Quick Ratio 2.81
Altman-Z 0.06
F-Score5
WACC9.3%
ROIC/WACC1.32
Cap/Depr(3y)198.8%
Cap/Depr(5y)139.74%
Cap/Sales(3y)7%
Cap/Sales(5y)5.29%
Profit Quality(3y)42.62%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-59.66%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-18.75%
EPS Next Y-65.56%
EPS Next 2Y-33.4%
EPS Next 3Y-15.82%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y13.81%
Revenue growth 5Y6.5%
Sales Q2Q%2.63%
Revenue Next Year2.06%
Revenue Next 2Y6.28%
Revenue Next 3Y8.71%
Revenue Next 5YN/A
EBIT growth 1Y-27.26%
EBIT growth 3Y17.57%
EBIT growth 5Y8.52%
EBIT Next Year-0.08%
EBIT Next 3Y9.65%
EBIT Next 5YN/A
FCF growth 1Y64.91%
FCF growth 3Y-36.63%
FCF growth 5YN/A
OCF growth 1Y12.55%
OCF growth 3Y-29.43%
OCF growth 5YN/A