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

Verizon Communications, Inc.

Telephone & Data Systems, Inc.

Anterix, Inc.

T-Mobile US, Inc.

Gogo, Inc.

AT&T, Inc.

United States Cellular Corp.

Liberty Broadband Corp.

Globalstar, Inc.

Spok Holdings, Inc.

Why is Gogo, Inc. ?

Flat results in Mar 26

NET PROFIT(HY) At USD 2.31 MM has Grown at -92.4%
INTEREST(9M) At USD 52.09 MM has Grown at 35.43%
RAW MATERIAL COST(Y) Grown by 14.97% (YoY)

With ROCE of 13.99%, it has a very expensive valuation with a 1.62 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 -76.61%, its profits have fallen by -49.6%

High Institutional Holdings at 84.82%

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

Below par performance in long term as well as near term

Along with generating -76.61% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

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.

-76.28%

-1.02

64.18%

S&P 500

22.24%

1.91

13.23%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.45%

EBIT Growth (5y)

50.50%

EBIT to Interest (avg)

2.50

Debt to EBITDA (avg)

5.40

Net Debt to Equity (avg)

9.37

Sales to Capital Employed (avg)

0.67

Tax Ratio

9.55%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

84.82%

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

6.02

EV to EBIT

11.54

EV to EBITDA

7.58

EV to Capital Employed

1.61

EV to Sales

1.46

PEG Ratio

Dividend Yield

ROCE (Latest)

13.99%

ROE (Latest)

31.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

5What is working for the Company

NET SALES(9M)

At USD 680.47 MM has Grown at 45.2%

DEBT-EQUITY RATIO (HY)

Lowest at 677.51 %

PRE-TAX PROFIT(Q)

At USD 17.68 MM has Grown at 51.84%

EPS(Q)

Highest at USD 0.1

-13What is not working for the Company

NET PROFIT(HY)

At USD 2.31 MM has Grown at -92.4%

INTEREST(9M)

At USD 52.09 MM has Grown at 35.43%

RAW MATERIAL COST(Y)

Grown by 14.97% (YoY

Here's what is working for Gogo, Inc.

Net Sales

At USD 680.47 MM has Grown at 45.2%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

At USD 17.68 MM has Grown at 51.84%

over average net sales of the previous four periods of USD 11.64 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

EPS

Highest at USD 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 677.51 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

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

Net Profit

At USD 2.31 MM has Grown at -92.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 52.09 MM has Grown at 35.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Raw Material Cost

Grown by 14.97% (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