Gogo, Inc. (GOGO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Anterix, Inc.

Gogo, Inc.

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Spok Holdings, Inc.

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Globalstar, Inc.

T-Mobile US, Inc.

Liberty Broadband Corp.

Why is Gogo, Inc. ?

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 77.66 MM
ROCE(HY) Lowest at -6.63%
RAW MATERIAL COST(Y) Grown by 38.74% (YoY)

With ROCE of 14.89%, it has a very expensive valuation with a 1.63 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -45.99%, its profits have fallen by -1.1%

High Institutional Holdings at 84.74%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -45.99% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gogo, Inc. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Gogo, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gogo, Inc.

-45.86%

-0.67

80.39%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.52%

EBIT Growth (5y)

45.21%

EBIT to Interest (avg)

2.50

Debt to EBITDA (avg)

5.40

Net Debt to Equity (avg)

9.37

Sales to Capital Employed (avg)

0.64

Tax Ratio

9.55%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

84.74%

ROCE (avg)

23.37%

ROE (avg)

100.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.83

EV to EBIT

10.93

EV to EBITDA

7.69

EV to Capital Employed

1.63

EV to Sales

1.64

PEG Ratio

Dividend Yield

ROCE (Latest)

14.89%

ROE (Latest)

54.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 724.58 %

INVENTORY TURNOVER RATIO(HY)

Highest at 6.13 times

DEBTORS TURNOVER RATIO(HY)

Highest at 7.44 times

NET SALES(Q)

At USD 223.59 MM has Grown at 28.74%

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 77.66 MM

ROCE(HY)

Lowest at -6.63%

RAW MATERIAL COST(Y)

Grown by 38.74% (YoY

INTEREST(Q)

Highest at USD 17.68 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.66 %

Here's what is working for Gogo, Inc.

Net Sales

At USD 223.59 MM has Grown at 28.74%

over average net sales of the previous four periods of USD 173.67 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debt-Equity Ratio

Lowest at 724.58 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 6.13 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 7.44 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at USD 15.21 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Gogo, Inc.

Operating Cash Flow

Lowest at USD 77.66 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

Highest at USD 17.68 MM

in the last five periods and Increased by 7.74% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 19.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 38.74% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales