NasdaqGS:GOGO

Stock Analysis Report

Executive Summary

Gogo Inc., through its subsidiaries, provides inflight broadband connectivity and wireless entertainment services to the aviation industry in the United States and internationally.


Snowflake Analysis

Slightly overvalued with concerning outlook.


Similar Companies

Share Price & News

How has Gogo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GOGO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

GOGO

2.3%

US Wireless Telecom

1.7%

US Market


1 Year Return

42.1%

GOGO

3.0%

US Wireless Telecom

23.2%

US Market

Return vs Industry: GOGO exceeded the US Wireless Telecom industry which returned 1.7% over the past year.

Return vs Market: GOGO exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

GOGOIndustryMarket
7 Day1.1%2.3%1.7%
30 Day-5.6%3.8%4.2%
90 Day-4.5%-2.6%11.9%
1 Year42.1%42.1%4.5%3.0%25.8%23.2%
3 Year-37.5%-37.5%2.8%-1.2%52.8%42.9%
5 Year-60.4%-60.4%77.6%63.4%75.2%55.8%

Price Volatility Vs. Market

How volatile is Gogo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gogo undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GOGO ($5.54) is trading below our estimate of fair value ($87.78)

Significantly Below Fair Value: GOGO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GOGO is unprofitable, so we can't compare its PE Ratio to the Wireless Telecom industry average.

PE vs Market: GOGO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GOGO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GOGO has negative assets, so we can't compare its PB Ratio to the US Wireless Telecom industry average.


Next Steps

Future Growth

How is Gogo forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

49.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GOGO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GOGO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GOGO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GOGO's revenue (8.6% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: GOGO's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GOGO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gogo performed over the past 5 years?

-15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GOGO is currently unprofitable.

Growing Profit Margin: GOGO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GOGO is unprofitable, and losses have increased over the past 5 years at a rate of -15.1% per year.

Accelerating Growth: Unable to compare GOGO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GOGO is unprofitable, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (-39.1%).


Return on Equity

High ROE: GOGO's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gogo's financial position?


Financial Position Analysis

Short Term Liabilities: GOGO has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: GOGO has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: GOGO has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: GOGO's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: GOGO has a high level of physical assets or inventory.

Debt Coverage by Assets: GOGO has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GOGO has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GOGO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Gogo's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage7.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GOGO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GOGO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GOGO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GOGO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GOGO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Gogo's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Oakleigh Thorne (61yo)

1.8yrs

Tenure

US$5,188,830

Compensation

Mr. Oakleigh B. Thorne has been President and Chief Executive Officer of Gogo Inc. since March 4, 2018. Mr. Thorne serves as the Chairman and Chief Executive Officer of TBG Information Investors, LLC. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: Oakleigh's total compensation ($USD5.19M) is above average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Oakleigh's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.8yrs

Average Tenure

55yo

Average Age

Experienced Management: GOGO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

9.8yrs

Average Tenure

69yo

Average Age

Experienced Board: GOGO's board of directors are considered experienced (9.8 years average tenure).


Insider Trading

Insider Buying: GOGO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$70,65514 Nov 19
Michael Bayer
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares10,947
Max PriceUS$6.45
BuyUS$180,40303 Sep 19
Charles Townsend
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares45,200
Max PriceUS$3.99
BuyUS$532,57927 Aug 19
Charles Townsend
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares134,349
Max PriceUS$3.99
BuyUS$198,94027 Aug 19
Hugh Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceUS$3.98
BuyUS$258,47923 Aug 19
Charles Townsend
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares65,651
Max PriceUS$4.00
BuyUS$20,00021 Aug 19
Robert Mundheim
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$4.00
BuyUS$21,00019 Aug 19
Robert Mundheim
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$4.20
BuyUS$442,85016 Aug 19
Charles Townsend
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceUS$4.46
BuyUS$554,84915 May 19
Charles Townsend
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceUS$5.66
BuyUS$560,39401 Mar 19
Charles Townsend
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares122,595
Max PriceUS$4.57
BuyUS$1,208,82428 Feb 19
Charles Townsend
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares277,405
Max PriceUS$4.46

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Oakleigh Thorne (61yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$5.19m
  • Barry Rowan (62yo)

    CFO & Executive VP

    • Tenure: 2.7yrs
    • Compensation: US$1.15m
  • Margee Elias (65yo)

    Executive VP

    • Compensation: US$932.22k
  • John Wade (56yo)

    President of Commercial Aviation Division

    • Compensation: US$1.12m
  • Andy Geist

    Senior Vice President of Business Aviation Solutions

    • Jon Cobin (46yo)

      Chief Strategy Officer & Executive VP of Corporate Development

      • Tenure: 1.7yrs
      • Compensation: US$1.01m
    • Will Davis (46yo)

      Vice President of Investor Relations

      • Tenure: 1.7yrs
    • Karen Jackson (49yo)

      Senior Vice President of Human Resources

      • Tenure: 5yrs
    • Michael Bayer (50yo)

      Chief Accounting Officer

      • Tenure: 4.6yrs
    • Sergio Aguirre (55yo)

      President of Business Aviation Division

      • Tenure: 1.7yrs

    Board Members

    • Ron LeMay (73yo)

      Chairman of the Board

      • Tenure: 13.5yrs
      • Compensation: US$264.95k
    • Hugh Jones (55yo)

      Independent Director

      • Tenure: 3.4yrs
      • Compensation: US$189.95k
    • Oakleigh Thorne (61yo)

      President

      • Tenure: 1.8yrs
      • Compensation: US$5.19m
    • Robert Crandall (84yo)

      Independent Director

      • Tenure: 13.6yrs
      • Compensation: US$189.95k
    • Robert Mundheim (86yo)

      Independent Director

      • Tenure: 7.8yrs
      • Compensation: US$204.95k
    • Michele Mayes (69yo)

      Independent Director

      • Tenure: 3.4yrs
      • Compensation: US$198.23k
    • Charlie Townsend (70yo)

      Independent Director

      • Tenure: 10yrs
      • Compensation: US$189.95k
    • Harris Williams (49yo)

      Independent Director

      • Tenure: 9.8yrs
      • Compensation: US$209.95k
    • Christopher Payne (50yo)

      Independent Director

      • Tenure: 5.6yrs
      • Compensation: US$189.95k

    Company Information

    Gogo Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Gogo Inc.
    • Ticker: GOGO
    • Exchange: NasdaqGS
    • Founded: 1991
    • Industry: Wireless Telecommunication Services
    • Sector: Telecom
    • Market Cap: US$493.684m
    • Shares outstanding: 88.16m
    • Website: https://www.gogoair.com

    Number of Employees


    Location

    • Gogo Inc.
    • 111 North Canal Street
    • Suite 1500
    • Chicago
    • Illinois
    • 60606
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    GOGONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2013
    G0GDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2013
    0IYQLSE (London Stock Exchange)YesCommon StockGBUSDJun 2013

    Biography

    Gogo Inc., through its subsidiaries, provides inflight broadband connectivity and wireless entertainment services to the aviation industry in the United States and internationally. It operates through three segments: Commercial Aviation North America (CA-NA), Commercial Aviation Rest of World (CA-ROW), and Business Aviation (BA). The CA-NA segment offers inflight connectivity and wireless digital entertainment solutions to commercial airline passengers flying routes that generally begin and end within North America. The CA-ROW segment provides inflight connectivity and wireless digital entertainment solutions to passengers flying on foreign-based commercial airlines and flights outside of North America for North American based commercial airlines. The BA segment offers equipment for inflight connectivity, including voice and data services to the business aviation market. Its services include AVANCE, an inflight broadband service that utilizes air-to-ground (ATG) network and ATG spectrum; Passenger Entertainment, an inflight entertainment service; and satellite-based voice and data services through strategic alliances with satellite companies. This segment serves aircraft manufacturers, owners, and operators, as well as government and military entities. The company was founded in 1991 and is headquartered in Chicago, Illinois. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/17 02:18
    End of Day Share Price2020/01/16 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.