GOGO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 quite expensive at the moment. It does show a decent growth rate.

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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

With a Return On Assets value of -0.41%, GOGO is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
The Return On Equity of GOGO (-4.95%) is worse than 77.27% of its industry peers.
With a Return On Invested Capital value of 5.46%, GOGO perfoms like the industry average, outperforming 59.09% of the companies in the same 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.
With a Operating Margin value of 9.26%, GOGO perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
GOGO's Operating Margin has declined in the last couple of years.
GOGO has a Gross Margin of 47.60%. This is comparable to the rest of the industry: GOGO outperforms 40.91% of its industry peers.
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

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.
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 0.03, we must say that GOGO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.03, 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 24.03, which is on the high side as it means it would take GOGO, 24.03 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GOGO (24.03) is worse 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.
With a Debt to Equity ratio value of 7.79, 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	7.79
Debt/FCF	24.03
Altman-Z	0.03

ROIC/WACC0.65

WACC8.36%

2.3 Liquidity

A Current Ratio of 1.74 indicates that GOGO should not have too much problems paying 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.
Looking at the Quick ratio, with a value of 1.40, GOGO belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.

		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

GOGO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -87.50%.
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

Based on estimates for the next years, GOGO will show a very strong growth in Earnings Per Share. The EPS will grow by 62.41% on average per year.
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

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

With a Price/Earnings ratio of 76.00, GOGO can be considered very expensive at the moment.
GOGO's Price/Earnings ratio is in line with the industry average.
GOGO is valuated expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
GOGO is valuated reasonably with a Price/Forward Earnings ratio of 10.16.
Based on the Price/Forward Earnings ratio, GOGO is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GOGO to the average of the S&P500 Index (25.98), we can say GOGO is valued rather cheaply.

		Industry Rank	Sector Rank
PE	76
Fwd PE	10.16

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GOGO is valued a bit more expensive than 63.64% of the companies in the same industry.
68.18% 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	17.55
EV/EBITDA	10.3

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GOGO's earnings are expected to grow with 62.41% in the coming years.