Overall GOGO gets a fundamental rating of 4 out of 10. We evaluated GOGO against 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. While showing a medium growth rate, GOGO is valued expensive at the moment.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

GOGO had positive earnings in the past year.
GOGO had a positive operating cash flow in the past year.
Of the past 5 years GOGO 4 years were profitable.
Each year in the past 5 years GOGO had a positive operating cash flow.

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.
GOGO's Return On Equity of -4.95% is on the low side compared to the rest of the industry. GOGO is outperformed by 77.27% of its industry peers.
The Return On Invested Capital of GOGO (5.46%) is better than 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOGO is above the industry average of 6.24%.
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

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.
GOGO's Operating Margin has declined in the last couple of years.
GOGO's Gross Margin of 47.60% is in line compared 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

GOGO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GOGO has more shares outstanding
Compared to 5 years ago, GOGO has more shares outstanding
Compared to 1 year ago, GOGO has an improved debt to assets ratio.

2.2 Solvency

GOGO has an Altman-Z score of 0.05. This is a bad value and indicates that GOGO is not financially healthy and even 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.
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.
GOGO's Debt to FCF ratio of 24.03 is on the low side compared to the rest of the industry. GOGO is outperformed by 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.
The Debt to Equity ratio of GOGO (7.79) is worse than 86.36% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	7.79
Debt/FCF	24.03
Altman-Z	0.05

ROIC/WACC0.61

WACC8.98%

2.3 Liquidity

A Current Ratio of 1.74 indicates that GOGO should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.74, GOGO belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
GOGO has a Quick Ratio of 1.40. This is a normal value and indicates that GOGO is financially healthy and should not expect problems in meeting 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.
GOGO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -47.56% yearly.
GOGO shows a strong growth in Revenue. In the last year, 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

Based on estimates for the next years, GOGO will show a very strong growth in Earnings Per Share. The EPS will grow by 68.75% on average per year.
Based on estimates for the next years, GOGO will show a very strong growth in Revenue. The Revenue will grow by 33.67% on average per year.

EPS Next Y24.66%

EPS Next 2Y79.25%

EPS Next 3Y68.75%

EPS Next 5YN/A

Revenue Next Year123.43%

Revenue Next 2Y50.85%

Revenue Next 3Y33.67%

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 82.33, the valuation of GOGO can be described as expensive.
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 27.32. GOGO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 10.25, the valuation of GOGO can be described as reasonable.
Based on the Price/Forward Earnings ratio, GOGO is valued a bit cheaper than 77.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.32. GOGO is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	82.33
Fwd PE	10.25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GOGO is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
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	19.01
EV/EBITDA	10.7

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 68.75% in the coming years.