4.89 USD
-0.05 (-1.01%)
4.89 USD
0 (0%)
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. GOGO has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, GOGO is valued expensive at the moment.
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.
- GOGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of GOGO (-0.41%) is worse than 72.73% of its industry peers.
- GOGO has a worse Return On Equity (-4.95%) than 77.27% of its industry peers.
- The Return On Invested Capital of GOGO (5.46%) is better than 63.64% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GOGO is above the industry average of 6.24%.
- 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
- GOGO's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 9.26%, GOGO perfoms like the industry average, outperforming 54.55% of the companies in the same 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%
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.
- The number of shares outstanding for GOGO has been increased compared to 1 year ago.
- The number of shares outstanding for GOGO has been increased compared to 5 years ago.
- GOGO has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.05, we must say that GOGO is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of GOGO (0.05) 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 Debt to FCF ratio of 24.03. This is in the lower half of the industry: GOGO underperforms 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.
- GOGO's Debt to Equity ratio of 7.79 is on the low side compared to the rest of the industry. GOGO is outperformed by 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
WACC8.99%
2.3 Liquidity
- A Current Ratio of 1.74 indicates that GOGO should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.74, GOGO belongs to the top 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.
- With an excellent Quick ratio value of 1.40, GOGO belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
- GOGO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -87.50%.
- 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%.
- 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
- 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
- With a Price/Earnings ratio of 81.50, GOGO can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as GOGO.
- GOGO is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 10.15, which indicates a very decent valuation of GOGO.
- 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.
- GOGO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.5 | ||
| Fwd PE | 10.15 |
4.2 Price Multiples
- 63.64% of the companies in the same industry are cheaper than GOGO, based on the Enterprise Value to EBITDA ratio.
- GOGO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. GOGO is more expensive than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.82 | ||
| 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.
- GOGO's earnings are expected to grow with 68.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.3
PEG (5Y)N/A
EPS Next 2Y79.25%
EPS Next 3Y68.75%
5. Dividend
5.1 Amount
- GOGO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
GOGO INC / GOGO FAQ
Can you provide the ChartMill fundamental rating for GOGO INC?
ChartMill assigns a fundamental rating of 4 / 10 to GOGO.
What is the valuation status for GOGO stock?
ChartMill assigns a valuation rating of 3 / 10 to GOGO INC (GOGO). This can be considered as Overvalued.
What is the profitability of GOGO stock?
GOGO INC (GOGO) has a profitability rating of 4 / 10.
How financially healthy is GOGO INC?
The financial health rating of GOGO INC (GOGO) is 3 / 10.