(GOGO) Gogo - Overview
Sector: Communication Services | Industry: Telecom Services | Exchange: NASDAQ (USA) | Market Cap: 555m USD | Total Return: -40.8% in 12m
Industry Rotation: -2.9
Avg Turnover: 8.42M USD
Peers RS (IBD): 2.9
EPS Trend: -56.2%
Qual. Beats: 0
Rev. Trend: 81.2%
Qual. Beats: 0
Warnings
High Debt/EBITDA (5.3) with thin interest coverage (1.4)
Altman Z'' -2.67 < 1.0 - financial distress zone
Volatile
Tailwinds
No distinct edge detected
Gogo Inc. provides broadband connectivity to the aviation industry, offering in-flight internet and entertainment services. This sector is characterized by specialized hardware and software integration with aircraft systems.
The companys offerings include networks, antennas, airborne equipment, and software. Its business model focuses on selling to aircraft operators and original equipment manufacturers (OEMs) of business aviation aircraft, primarily through independent dealers. Connectivity services for airlines often involve long-term contracts and complex regulatory approvals.
Gogo Inc. also develops and operates supporting infrastructure such as networks, towers, cybersecurity software, and data centers. To understand Gogos market position and financial performance in more detail, further research on ValueRay is recommended.
- Business aviation connectivity demand drives revenue growth
- Satellite network upgrades impact capital expenditures
- Regulatory changes for in-flight connectivity pose risk
- OEM partnerships secure future equipment installations
| Net Income: 12.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 3.02 > 1.0 |
| NWC/Revenue: 17.87% < 20% (prev 31.72%; Δ -13.85% < -1%) |
| CFO/TA 0.10 > 3% & CFO 124.5m > Net Income 12.9m |
| Net Debt (836.4m) to EBITDA (157.4m): 5.31 < 3 |
| Current Ratio: 1.60 > 1.5 & < 3 |
| Outstanding Shares: last quarter (134.9m) vs 12m ago 4.83% < -2% |
| Gross Margin: 59.06% > 18% (prev 0.63%; Δ 5.84k% > 0.5%) |
| Asset Turnover: 71.89% > 50% (prev 36.18%; Δ 35.71% > 0%) |
| Interest Coverage Ratio: 1.42 > 6 (EBITDA TTM 157.4m / Interest Expense TTM 68.2m) |
| A: 0.12 (Total Current Assets 431.9m - Total Current Liabilities 269.2m) / Total Assets 1.30b |
| B: -0.91 (Retained Earnings -1.19b / Total Assets 1.30b) |
| C: 0.08 (EBIT TTM 97.1m / Avg Total Assets 1.27b) |
| D: -0.99 (Book Value of Equity -1.19b / Total Liabilities 1.20b) |
| Altman-Z'' Score: -2.67 = D |
| DSRI: 0.55 (Receivables 151.0m/133.9m, Revenue 910.5m/444.7m) |
| GMI: 1.06 (GM 59.06% / 62.54%) |
| AQI: 0.91 (AQ_t 0.53 / AQ_t-1 0.58) |
| SGI: 2.05 (Revenue 910.5m / 444.7m) |
| TATA: -0.09 (NI 12.9m - CFO 124.5m) / TA 1.30b) |
| Beneish M-Score: -2.73 (Cap -4..+1) = A |
Over the past week, the price has changed by +4.48%, over one month by -14.98%, over three months by -10.64% and over the past year by -40.76%.
- StrongBuy: 1
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 9.3 | 122.1% |
P/E Forward = 8.0386
P/S = 0.6094
P/B = 5.3538
P/EG = -0.43
Revenue TTM = 910.5m USD
EBIT TTM = 97.1m USD
EBITDA TTM = 157.4m USD
Long Term Debt = 833.6m USD (from longTermDebt, last quarter)
Short Term Debt = 16.4m USD (from shortTermDebt, last quarter)
Debt = 961.6m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 836.4m USD (from netDebt column, last quarter)
Enterprise Value = 1.39b USD (554.9m + Debt 961.6m - CCE 125.2m)
Interest Coverage Ratio = 1.42 (Ebit TTM 97.1m / Interest Expense TTM 68.2m)
EV/FCF = 23.74x (Enterprise Value 1.39b / FCF TTM 58.6m)
FCF Yield = 4.21% (FCF TTM 58.6m / Enterprise Value 1.39b)
FCF Margin = 6.44% (FCF TTM 58.6m / Revenue TTM 910.5m)
Net Margin = 1.42% (Net Income TTM 12.9m / Revenue TTM 910.5m)
Gross Margin = 59.06% ((Revenue TTM 910.5m - Cost of Revenue TTM 372.7m) / Revenue TTM)
Gross Margin QoQ = 70.50% (prev 59.03%)
Tobins Q-Ratio = 1.07 (Enterprise Value 1.39b / Total Assets 1.30b)
Interest Expense / Debt = 1.83% (Interest Expense 17.6m / Debt 961.6m)
Taxrate = 21.0% (US default 21%)
NOPAT = 76.7m (EBIT 97.1m * (1 - 21.00%))
Current Ratio = 1.60 (Total Current Assets 431.9m / Total Current Liabilities 269.2m)
Debt / Equity = 9.51 (Debt 961.6m / totalStockholderEquity, last quarter 101.1m)
Debt / EBITDA = 5.31 (Net Debt 836.4m / EBITDA 157.4m)
Debt / FCF = 14.27 (Net Debt 836.4m / FCF TTM 58.6m)
Total Stockholder Equity = 98.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.02% (Net Income 12.9m / Total Assets 1.30b)
RoE = 13.13% (Net Income TTM 12.9m / Total Stockholder Equity 98.5m)
RoCE = 10.42% (EBIT 97.1m / Capital Employed (Equity 98.5m + L.T.Debt 833.6m))
RoIC = 8.22% (NOPAT 76.7m / Invested Capital 933.7m)
WACC = 5.07% (E(554.9m)/V(1.52b) * Re(11.35%) + D(961.6m)/V(1.52b) * Rd(1.83%) * (1-Tc(0.21)))
Discount Rate = 11.35% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.73%
[DCF] Terminal Value 86.37% ; FCFF base≈42.4m ; Y1≈42.6m ; Y5≈45.5m
[DCF] Fair Price = 3.82 (EV 1.35b - Net Debt 836.4m = Equity 514.1m / Shares 134.7m; r=6.0% [WACC]; 5y FCF grow -0.19% → 3.0% )
EPS Correlation: -56.19 | EPS CAGR: -25.76% | SUE: -0.56 | # QB: 0
Revenue Correlation: 81.18 | Revenue CAGR: 27.49% | SUE: 0.58 | # QB: 0
EPS next Quarter (2026-06-30): EPS=0.11 | Chg7d=-0.060 | Chg30d=-0.060 | Revisions Net=-1 | Analysts=1
EPS current Year (2026-12-31): EPS=0.50 | Chg7d=-0.240 | Chg30d=-0.240 | Revisions Net=-1 | Growth EPS=+102.8% | Growth Revenue=+1.0%
EPS next Year (2027-12-31): EPS=0.80 | Chg7d=-0.200 | Chg30d=-0.200 | Revisions Net=-1 | Growth EPS=+60.0% | Growth Revenue=+2.5%