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 valied quite expensively at the moment, while 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.
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

Looking at the Return On Assets, with a value of -0.41%, GOGO is doing worse than 72.73% of the companies in the same industry.
GOGO has a worse Return On Equity (-4.95%) than 77.27% of its industry peers.
GOGO's Return On Invested Capital of 5.46% is in line compared to the rest of the industry. GOGO outperforms 59.09% of its industry peers.
GOGO had an Average Return On Invested Capital over the past 3 years of 10.98%. This 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.
The Operating Margin of GOGO (9.26%) is comparable to the rest of the industry.
GOGO's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 47.60%, GOGO perfoms like the industry average, outperforming 40.91% of the companies in the same 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

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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.
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 0.05. This is a bad value and indicates that GOGO is not financially healthy and even has some risk of bankruptcy.
GOGO's Altman-Z score of 0.05 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 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.
With a Debt to FCF ratio value of 24.03, GOGO is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
GOGO has a Debt/Equity ratio of 7.79. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 7.79, GOGO is doing worse than 86.36% of the companies in the same industry.

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

ROIC/WACC0.61

WACC8.98%

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.
Looking at the Current ratio, with a value of 1.74, GOGO belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that GOGO should not have too much problems paying its short term obligations.
GOGO's Quick ratio of 1.40 is amongst the best of 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

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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.
Looking at the last year, GOGO shows a very strong growth in Revenue. 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

GOGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 62.41% yearly.
The Revenue is expected to grow by 32.56% on average over the next years. This is a very strong growth

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.
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

GOGO is valuated quite expensively with a Price/Earnings ratio of 81.50.
GOGO's Price/Earnings ratio is in line with the industry average.
GOGO is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.90 indicates a reasonable valuation of GOGO.
Based on the Price/Forward Earnings ratio, GOGO is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.98. GOGO is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	81.5
Fwd PE	10.9

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 68.18% of the companies listed in the same industry.
GOGO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. GOGO is more expensive than 72.73% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	18.82
EV/EBITDA	10.65

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GOGO does not grow enough to justify the current Price/Earnings ratio.
GOGO's earnings are expected to grow with 62.41% in the coming years. This may justify a more expensive valuation.