1.08%
4.33%
28.85%
-7.05%
-4.63%
-32.21%
60.46%
AI Spotlight on GOGO
Company Description
Gogo Inc., through its subsidiaries, provides broadband connectivity services to the aviation industry in the United States and internationally.It operates through Commercial Aviation North America (CA-NA), Commercial Aviation Rest of World (CA-ROW), and Business Aviation (BA) segments.The company design, build and operate air-to-ground networks, engineer and maintain in-flight systems of proprietary hardware and software, and deliver customizable connectivity and wireless entertainment services.
It also offers suite of integrated equipment, network, and internet connectivity products and services, as well as includes suite of smart cabin systems for integrated connectivity, in-flight entertainment, and voice solutions.In addition, the company portfolio comprises of in-flight network, in-flight systems, in-flight services, aviation partner support, and production operations functions.Further, the company offers satellite-based voice and data services.
Gogo Inc.was founded in 1991 and is headquartered in Broomfield, Colorado.
Market Data
| Last Price | 8.44 |
| Change Percentage | 1.08% |
| Open | 8.4 |
| Previous Close | 8.35 |
| Market Cap ( Millions) | 1062 |
| Volume | 1176731 |
| Year High | 11.17 |
| Year Low | 6.17 |
| M A 50 | 7.89 |
| M A 200 | 8.32 |
Financial Ratios
| FCF Yield | 8.05% |
| Dividend Yield | 0.00% |
| ROE | 108.56% |
| Debt / Equity | 1271.33% |
| Net Debt / EBIDTA | 396.48% |
| Price To Book | 20.48 |
| Price Earnings Ratio | 19.13 |
| Price To FCF | 12.43 |
| Price To sales | 2.62 |
| EV / EBITDA | 12.49 |
News
- Dec -04 - Gogo Completes Acquisition of Satcom Direct and Announces Leadership Transition
- Nov -08 - Gogo: Quite Undervalued Despite Gogo 5G Introduction
- Nov -05 - Gogo Inc. (GOGO) Q3 2024 Earnings Call Transcript
- Nov -05 - Gogo (GOGO) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
- Nov -05 - Gogo (GOGO) Q3 Earnings and Revenues Beat Estimates
- Nov -05 - Gogo Announces Third Quarter Results
- Nov -04 - Gogo Galileo HDX Antenna Passes FAA-Mandated DO-160 Qualification Testing
- Oct -22 - Wheels Up Selects Gogo Galileo HDX Fleetwide
- Oct -22 - Textron Aviation Selects Gogo Galileo HDX for Factory Installation on Cessna Citation Longitude, Latitude and Ascend
- Oct -17 - Skyservice™ Announces Development of Gogo Galileo HDX STC for Gulfstream G280
- Oct -15 - 10 small-cap stocks selected by digging deep for quality
- Oct -15 - Gogo Galileo Tour Launches Nationwide
- Oct -14 - Gogo Receiving Unprecedented Demand for Gogo Galileo HDX
- Oct -01 - Will GOGO Stock Benefit From Satcom Direct Buyout Deal?
- Sep -30 - Gogo to Acquire Satcom Direct
- Sep -26 - Gogo Secures 25 STC Contracts for Gogo Galileo HDX
- Sep -16 - Gogo Business Aviation and Airshare Announce Multi-Year Agreement to Provide Upgraded Connectivity
- Sep -11 - Gogo Galileo HDX Takes Flight; First Installation Complete on Challenger 300
- Aug -27 - Gogo to Boost 5G IFEC Service in North America: Will the Stock Benefit?
- Aug -26 - Gogo and Skyservice Business Aviation Developing Extensive 5G STC Portfolio
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Connectivity
Expected Growth : 12 %
What the company do ?
Gogo Inc. provides in-flight connectivity, enabling passengers to stay connected to the internet, check emails, and access entertainment content during flights.
Why we expect these perspectives ?
Gogo Inc.'s 12% growth is driven by increasing demand for in-flight connectivity, expansion into new markets, and partnerships with major airlines. The rise of remote work and digital entertainment also fuels growth. Additionally, Gogo's investments in 5G technology and its proprietary modem have improved network performance, attracting more customers and increasing revenue.
Segment n°2 -> Air-To-Ground
Expected Growth : 10 %
What the company do ?
Air-To-Ground (ATG) from Gogo Inc. is a wireless technology that connects aircraft to the internet via cell towers on the ground.
Why we expect these perspectives ?
Gogo's Air-To-Ground segment growth is driven by increasing demand for in-flight connectivity, expansion of 2Ku satellite technology, and growing adoption of streaming services. Additionally, partnerships with major airlines, such as Delta and American Airlines, contribute to the segment's growth. Furthermore, the increasing need for high-speed internet and rising passenger traffic also support the 10% growth rate.
Segment n°3 -> Narrowband Satellite
Expected Growth : 9 %
What the company do ?
Narrowband Satellite from Gogo Inc. is a low-bandwidth satellite connectivity solution for aircraft, providing basic internet and email access.
Why we expect these perspectives ?
Gogo's Narrowband Satellite growth is driven by increasing demand for in-flight connectivity, expansion into new markets, and partnerships with major airlines. The growth is also fueled by the rising adoption of IoT devices, increasing need for remote monitoring and management, and the requirement for low-bandwidth, low-cost satellite connectivity solutions.
Segment n°4 -> Other
Expected Growth : 8 %
What the company do ?
The Other segment from Gogo Inc. includes all non-Airborne and non-Business Aviation revenue streams, such as commercial aviation, original equipment manufacturer, and other.
Why we expect these perspectives ?
Gogo Inc.'s 'Other' segment growth is driven by increasing demand for in-flight entertainment and connectivity services, expansion into new markets, and strategic partnerships with airlines and content providers. Additionally, the company's investments in digital transformation and innovation, such as its Gogo 2Ku satellite technology, are contributing to its growth.
Segment n°5 -> Entertainment and Other
Expected Growth : 11 %
What the company do ?
Entertainment and Other from Gogo Inc. refers to revenue generated from non-airline partnerships, advertising, and other miscellaneous sources.
Why we expect these perspectives ?
Gogo Inc.'s Entertainment and Other segment growth of 11% is driven by increasing demand for in-flight entertainment, expansion of streaming services, and growing adoption of digital content. Additionally, partnerships with major airlines and content providers, as well as investments in technology and infrastructure, contribute to the segment's growth.
Gogo Inc. Products
| Product Range | What is it ? |
|---|---|
| Inflight Internet | Gogo's inflight internet provides high-speed internet access to passengers on commercial airlines, allowing them to stay connected and productive during flight. |
| Inflight Entertainment | Gogo's inflight entertainment offers a wide range of movies, TV shows, music, and games to passengers on commercial airlines, providing an immersive entertainment experience. |
| Gogo Vision | Gogo Vision is a wireless in-flight entertainment system that allows passengers to stream content to their devices, offering a personalized entertainment experience. |
| Gogo TV | Gogo TV is a live TV service that offers passengers real-time access to live TV channels, news, and sports during flight. |
| Gogo Business Aviation | Gogo's business aviation solutions provide high-speed internet and voice services to business aircraft, enabling passengers to stay connected and productive during flight. |
| Gogo 2Ku | Gogo's 2Ku is a high-speed satellite internet system that provides fast and reliable internet connectivity to commercial airlines and business aircraft. |
Gogo Inc.'s Porter Forces
Threat Of Substitutes
Gogo Inc. faces moderate threat from substitutes as there are limited alternatives to in-flight internet services, but passengers may choose to use their personal hotspots or wait until they land to access the internet.
Bargaining Power Of Customers
Gogo Inc. has a large customer base of airlines, which reduces the bargaining power of individual customers. Additionally, the company's contracts with airlines are typically long-term, reducing the risk of customers switching to competitors.
Bargaining Power Of Suppliers
Gogo Inc. relies on a limited number of suppliers for its equipment and services, which gives them some bargaining power. However, the company's large scale of operations and long-term contracts mitigate this risk.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the in-flight internet services market, including the need for significant capital investment and regulatory approvals.
Intensity Of Rivalry
The in-flight internet services market is highly competitive, with several players competing for market share. Gogo Inc. faces intense competition from companies like ViaSat and Panasonic Avionics.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 93.69% |
| Debt Cost | 3.95% |
| Equity Weight | 6.31% |
| Equity Cost | 9.16% |
| WACC | 4.27% |
| Leverage | 1485.67% |
Gogo Inc. : Quality Control
Gogo Inc. passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| GSAT | Globalstar, Inc. provides mobile satellite services worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, … |
| OOMA | Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada. The company's products and services include Ooma Office, a cloud-based multi-user communications … |
| RBBN | Ribbon Communications Inc. provides communications technology in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It operates through two segments, Cloud and Edge, and IP … |
| ATEX | Anterix Inc. operates as a wireless communications company. The company focuses on commercializing its spectrum assets to enable the targeted utility and critical infrastructure customers to deploy private broadband networks, … |
| CNSL | Consolidated Communications Holdings, Inc., together with its subsidiaries, provides broadband and business communication solutions for consumer, commercial, and carrier channels in the United States. It offers high-speed broadband Internet access … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Ooma
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Consolidated Communications Holdings
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Anterix
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4
Ribbon Communications
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5
Gogo
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1-Year Total Return ->
6
