GOGO INC (GOGO)
US38046C1099 - Common Stock
We assign a fundamental rating of 5 out of 10 to GOGO. GOGO was compared to 22 industry peers in the Wireless Telecommunication Services industry. GOGO scores excellent on profitability, but there are some minor concerns on its financial health. GOGO does not seem to be growing, but still is valued expensively.
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.
In multiple years GOGO reported negative net income over the last 5 years.
Of the past 5 years GOGO 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GOGO (6.96%) is better than 95.24% of its industry peers.
With an excellent Return On Equity value of 107.02%, GOGO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of GOGO (12.23%) is better than 90.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOGO is significantly above the industry average of 6.46%.
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 Rank | Sector 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%
1.3 Margins
GOGO has a better Profit Margin (13.94%) than 100.00% of its industry peers.
The Operating Margin of GOGO (24.78%) is better than 100.00% of its industry peers.
GOGO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 66.29%, GOGO belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
In the last couple of years the Gross Margin of GOGO has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
GOGO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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 0.02. This is a bad value and indicates that GOGO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.02, GOGO is doing worse than 76.19% of the companies in the same industry.
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 61.90% 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.
The Debt to Equity ratio of GOGO (11.08) is worse than 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.08 | ||
| Debt/FCF | 7.24 | ||
| Altman-Z | 0.02 |
ROIC/WACC1.34
WACC9.1%
2.3 Liquidity
GOGO has a Current Ratio of 3.58. This indicates that GOGO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GOGO (3.58) is better than 95.24% of its industry peers.
GOGO has a Quick Ratio of 2.81. This indicates that GOGO is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of GOGO (2.81) is better than 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.58 | ||
| Quick Ratio | 2.81 |
3. Growth
3.1 Past
The earnings per share for GOGO have decreased strongly by -59.66% in the last year.
The Revenue has decreased by -0.78% in the past year.
Measured over the past years, GOGO shows a small growth in Revenue. The Revenue has been growing by 6.50% on average per year.
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 -15.13% yearly.
The Revenue is expected to grow by 8.61% on average over the next years. This is quite good.
EPS Next Y-68.65%
EPS Next 2Y-32.15%
EPS Next 3Y-15.13%
EPS Next 5YN/A
Revenue Next Year1.76%
Revenue Next 2Y6.25%
Revenue Next 3Y8.61%
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.
4. Valuation
4.1 Price/Earnings Ratio
GOGO is valuated rather expensively with a Price/Earnings ratio of 17.25.
GOGO's Price/Earnings ratio is a bit cheaper when compared to the industry. GOGO is cheaper than 71.43% of the companies in the same industry.
GOGO is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
GOGO is valuated correctly with a Price/Forward Earnings ratio of 16.50.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOGO is on the same level as its industry peers.
GOGO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.25 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOGO is valued a bit more expensive than the industry average as 76.19% of the companies are valued more cheaply.
66.67% 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 | 12.76 | ||
| EV/EBITDA | 11.89 |
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 -15.13% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-32.15%
EPS Next 3Y-15.13%
5. Dividend
5.1 Amount
GOGO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GOGO INC
NASDAQ:GOGO (11/21/2024, 5:20:01 PM)
After market: 8.28 0 (0%)8.28
+0.54 (+6.98%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.25 | ||
| Fwd PE | 16.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.96% | ||
| ROE | 107.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.78% | ||
| PM (TTM) | 13.94% | ||
| GM | 66.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.58 | ||
| Quick Ratio | 2.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-59.66%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-68.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y13.81%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y