Gogo shares fell by -4.3% Friday, and are now trading at a price of $16.66. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
Gogo Inc., through its subsidiaries, provides broadband connectivity services to the aviation industry in the United States and internationally. The company belongs to the Communication Services sector, which has an average price to earnings (P/E) ratio of 18.65. In contrast, Gogo has a trailing 12 month P/E ratio of 6.9 based on its earnings per share of $2.4.
The company's finances are bleak. Gogo's revenues are shrinking, its indebted, and teetering on the edge of profitability, so conservative investors will likely overlook this stock.
2019-12-31 | 2020-12-31 | 2021-12-31 | |
---|---|---|---|
Revenue (k) | $835,726 | $269,718 | $335,716 |
Revenue Growth | n/a | -67.73% | 24.47% |
Gross Margins | 48.2% | 68.7% | 69.6% |
Gross Margins Growth | n/a | 42.53% | 1.31% |
Operating Margins | 4.4% | 28.3% | 35.9% |
Operating Margins Growth | n/a | 543.18% | 26.86% |
Earnings Per Share | -$1.81 | -$3.04 | $1.28 |
EPS Growth | n/a | -67.96% | 142.11% |
Diluted Shares (MM) | 81 | 82 | 127 |
Free Cash Flow (k) | -$51,417 | -$141,677 | $56,826 |
FCF Growth | n/a | -175.55% | 140.11% |
Capital Expenditures (k) | -$115,478 | -$8,990 | -$8,660 |
Net Debt / EBITDA | 5.97 | 8.69 | 5.06 |