GOGO INC (GOGO) Stock Fundamental Analysis
USA - NASDAQ:GOGO - US38046C1099 - Common Stock
9.37 USD
-0.2 (-2.09%)
9.38 USD
+0.01 (+0.11%)
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. There are concerns on the financial health of GOGO while its profitability can be described as average. GOGO is quite expensive at the moment. It does show a decent growth rate.
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 0.58%. This is comparable to the rest of the industry: GOGO outperforms 50.00% of its industry peers.
GOGO has a Return On Equity (7.07%) which is in line with its industry peers.
GOGO has a Return On Invested Capital of 4.83%. This is comparable to the rest of the industry: GOGO outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GOGO is above the industry average of 6.09%.
The 3 year average ROIC (10.98%) for GOGO is well above the current ROIC(4.83%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 7.07% | ||
| ROIC | 4.83% |
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
With a Profit Margin value of 1.05%, GOGO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of GOGO has declined.
GOGO's Operating Margin of 9.51% is in line compared to the rest of the industry. GOGO outperforms 54.55% of its industry peers.
GOGO's Operating Margin has declined in the last couple of years.
GOGO has a Gross Margin (51.04%) which 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 | 9.51% | ||
| PM (TTM) | 1.05% | ||
| GM | 51.04% |
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.
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
GOGO has an Altman-Z score of 0.22. 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 0.22, GOGO is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
GOGO has a debt to FCF ratio of 30.33. This is a negative value and a sign of low solvency as GOGO would need 30.33 years to pay back of all of its debts.
GOGO's Debt to FCF ratio of 30.33 is on the low side compared to the rest of the industry. GOGO is outperformed by 72.73% of its industry peers.
GOGO has a Debt/Equity ratio of 8.10. This is a high value indicating a heavy dependency on external financing.
GOGO has a Debt to Equity ratio of 8.10. This is amonst the worse of the industry: GOGO underperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.1 | ||
| Debt/FCF | 30.33 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.63
WACC7.7%
2.3 Liquidity
A Current Ratio of 1.71 indicates that GOGO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.71, GOGO is doing good in the industry, outperforming 72.73% of the companies in the same industry.
GOGO has a Quick Ratio of 1.32. 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 1.32. This is in the better half of the industry: GOGO outperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for GOGO have decreased strongly by -82.35% in the last year.
The earnings per share for GOGO have been decreasing by -47.56% on average. This is quite bad
The Revenue has grown by 72.77% in the past year. This is a very strong growth!
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)-82.35%
EPS 3Y-47.56%
EPS 5YN/A
EPS Q2Q%800%
Revenue 1Y (TTM)72.77%
Revenue growth 3Y9.83%
Revenue growth 5Y7.55%
Sales Q2Q%121.48%
3.2 Future
GOGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 78.58% yearly.
GOGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 36.26% yearly.
EPS Next Y122.7%
EPS Next 2Y98.94%
EPS Next 3Y78.58%
EPS Next 5YN/A
Revenue Next Year124.05%
Revenue Next 2Y53.24%
Revenue Next 3Y36.26%
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 104.11.
Compared to the rest of the industry, the Price/Earnings ratio of GOGO indicates a slightly more expensive valuation: GOGO is more expensive than 72.73% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GOGO to the average of the S&P500 Index (27.20), we can say GOGO is valued expensively.
GOGO is valuated correctly with a Price/Forward Earnings ratio of 15.78.
The rest of the industry has a similar Price/Forward Earnings ratio as GOGO.
When comparing the Price/Forward Earnings ratio of GOGO to the average of the S&P500 Index (22.71), we can say GOGO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 104.11 | ||
| Fwd PE | 15.78 |
4.2 Price Multiples
77.27% of the companies in the same industry are cheaper than GOGO, based on the Enterprise Value to EBITDA ratio.
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 | 45.49 | ||
| EV/EBITDA | 18.63 |
4.3 Compensation for Growth
GOGO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GOGO's earnings are expected to grow with 78.58% in the coming years.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y98.94%
EPS Next 3Y78.58%
5. Dividend
5.1 Amount
No dividends for GOGO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.37
-0.2 (-2.09%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners60.94%
Inst Owner Change-6.33%
Ins Owners0.09%
Ins Owner Change0.13%
Market Cap1.25B
Analysts78.18
Price Target16.58 (76.95%)
Short Float %23.9%
Short Ratio11.33
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)-8.16%
Min EPS beat(2)-23.27%
Max EPS beat(2)6.95%
EPS beat(4)2
Avg EPS beat(4)-197.75%
Min EPS beat(4)-929.56%
Max EPS beat(4)154.9%
EPS beat(8)5
Avg EPS beat(8)-80.78%
EPS beat(12)8
Avg EPS beat(12)-20.47%
EPS beat(16)12
Avg EPS beat(16)105.04%
Revenue beat(2)2
Avg Revenue beat(2)2.98%
Min Revenue beat(2)0.67%
Max Revenue beat(2)5.29%
Revenue beat(4)4
Avg Revenue beat(4)11.51%
Min Revenue beat(4)0.67%
Max Revenue beat(4)38.77%
Revenue beat(8)6
Avg Revenue beat(8)5.61%
Revenue beat(12)7
Avg Revenue beat(12)3.23%
Revenue beat(16)11
Avg Revenue beat(16)2.8%
PT rev (1m)-1.52%
PT rev (3m)-1.52%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)-30.91%
EPS NY rev (1m)-25.57%
EPS NY rev (3m)-32.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 104.11 | ||
| Fwd PE | 15.78 | ||
| P/S | 1.8 | ||
| P/FCF | 45.49 | ||
| P/OCF | 22.37 | ||
| P/B | 12.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.63 |
EPS(TTM)0.09
EY0.96%
EPS(NY)0.59
Fwd EY6.34%
FCF(TTM)0.21
FCFY2.2%
OCF(TTM)0.42
OCFY4.47%
SpS5.2
BVpS0.77
TBVpS-2.64
PEG (NY)0.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 7.07% | ||
| ROCE | 6.37% | ||
| ROIC | 4.83% | ||
| ROICexc | 5.35% | ||
| ROICexgc | 10.44% | ||
| OM | 9.51% | ||
| PM (TTM) | 1.05% | ||
| GM | 51.04% | ||
| FCFM | 3.96% |
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-Score6
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.1 | ||
| Debt/FCF | 30.33 | ||
| Debt/EBITDA | 7.81 | ||
| Cap/Depr | 70.27% | ||
| Cap/Sales | 4.1% | ||
| Interest Coverage | 0.97 | ||
| Cash Conversion | 52.55% | ||
| Profit Quality | 378.96% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 0.22 |
F-Score6
WACC7.7%
ROIC/WACC0.63
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)-82.35%
EPS 3Y-47.56%
EPS 5YN/A
EPS Q2Q%800%
EPS Next Y122.7%
EPS Next 2Y98.94%
EPS Next 3Y78.58%
EPS Next 5YN/A
Revenue 1Y (TTM)72.77%
Revenue growth 3Y9.83%
Revenue growth 5Y7.55%
Sales Q2Q%121.48%
Revenue Next Year124.05%
Revenue Next 2Y53.24%
Revenue Next 3Y36.26%
Revenue Next 5YN/A
EBIT growth 1Y-42.32%
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-44.93%
FCF growth 3Y-33.57%
FCF growth 5YN/A
OCF growth 1Y-39.98%
OCF growth 3Y-10.46%
OCF growth 5YN/A