Gogo Inc.
Gogo Inc. Fundamental Analysis
Gogo Inc. (GOGO) shows moderate financial fundamentals with a PE ratio of 44.86, profit margin of 1.42%, and ROE of 13.13%. The company generates $0.9B in annual revenue with strong year-over-year growth of 11.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GOGO's fundamental strength across five key dimensions:
Efficiency Score
WeakGOGO struggles to generate sufficient returns from assets.
Valuation Score
ModerateGOGO shows balanced valuation metrics.
Growth Score
ModerateGOGO shows steady but slowing expansion.
Financial Health Score
ModerateGOGO shows balanced financial health with some risks.
Profitability Score
WeakGOGO struggles to sustain strong margins.
Key Financial Metrics
Is GOGO Expensive or Cheap?
P/E Ratio
GOGO trades at 44.86 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GOGO's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Gogo Inc. at 5.73 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -1.64 times EBITDA. This is generally considered low.
How Well Does GOGO Make Money?
Net Profit Margin
For every $100 in sales, Gogo Inc. keeps $1.42 as profit after all expenses.
Operating Margin
Core operations generate 12.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.13 in profit for every $100 of shareholder equity.
ROA
Gogo Inc. generates $0.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gogo Inc. produces operating cash flow of $124.31M, showing steady but balanced cash generation.
Free Cash Flow
Gogo Inc. produces free cash flow of $58.53M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.43 in free cash annually.
FCF Yield
GOGO converts 10.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
9.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How GOGO Stacks Against Its Sector Peers
| Metric | GOGO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.86 | 23.32 | Worse (Expensive) |
| ROE | 13.13% | 1104.00% | Weak |
| Net Margin | 1.42% | -55937.00% (disorted) | Weak |
| Debt/Equity | 9.51 | 1.38 | Weak (High Leverage) |
| Current Ratio | 1.60 | 1.56 | Neutral |
| ROA | 0.99% | -45352.00% (disorted) | Weak |
GOGO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gogo Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-66.56%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
105.92%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
-59.37%
Industry Style: Growth, Technology, Streaming
Declining