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. GOGO is quite expensive at the moment. 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

GOGO had positive earnings in the past year.
In the past year GOGO had a positive cash flow from operations.
GOGO had positive earnings in 4 of the past 5 years.
In the past 5 years GOGO always reported a positive cash flow from operatings.

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.
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.
GOGO has a Return On Invested Capital (5.46%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for GOGO is above the industry average of 6.55%.
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

GOGO's Profit Margin has declined in the last couple of years.
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.
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

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GOGO is still 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.
Compared to 1 year ago, GOGO has an improved debt to assets ratio.

2.2 Solvency

GOGO has an Altman-Z score of 0.03. This is a bad value and indicates that GOGO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GOGO (0.03) is worse than 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.
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	0.03

ROIC/WACC0.65

WACC8.36%

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.
The Current ratio of GOGO (1.74) is better than 90.91% of its industry peers.
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.
GOGO has a Quick ratio of 1.40. This is amongst the best in the industry. GOGO outperforms 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.
Measured over the past years, GOGO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -47.56% on average per year.
The Revenue has grown by 102.05% in the past year. This is a very strong growth!
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

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 75.67 indicates a quite expensive valuation of GOGO.
GOGO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.39. GOGO is valued rather expensively when compared to this.
GOGO is valuated reasonably with a Price/Forward Earnings ratio of 10.12.
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 (25.72), we can say GOGO is valued rather cheaply.

		Industry Rank	Sector Rank
PE	75.67
Fwd PE	10.12

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 63.64% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GOGO is valued a bit more expensive than 68.18% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	17.47
EV/EBITDA	10.28

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.