Gogo Inc.
$3.93
-10%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 40.7).
Valuation inputs: P/E 40.7, earnings yield +2.5%, momentum -10.1%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +12.8%, ROIC +5.2%).
Profitability stack: net margin +1.4%, ROE +12.8%, ROIC +5.2%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +92.2%, momentum -10.1%, net margin +1.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Gogo Inc. Market vs Earnings Trajectory
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Gogo Inc. Fair Value Envelope
Gogo Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.
Gogo Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Gogo Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Gogo Inc. Street Expectations Map
Wall Street analysts project that GOGO stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 9.50, with estimates ranging from a low of 7.00 to a high of 12.00.
The consensus 1-year price target stands at 9.50, with estimates ranging from a low of 7.00 to a high of 12.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Analyst Conviction
Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
Gogo Inc. Insider Positioning
During the last 12 months, insiders have purchased $3.47M and sold $1.61M worth of GOGO shares, resulting in $1.86M of net buying activity.
3 Months
250.0K
1.14M
0
0.00
+1.1M
+$1.14M
3-6 Months
150.0K
802.50K
0
0.00
+803K
+$803K
6-9 Months
200.0K
1.41M
0
0.00
+1.4M
+$1.41M
9-12 Months
10.0K
121.10K
107.1K
1.61M
-1.5M
-$1.49M
Top Buyers
Townsend Charles C
Director
$2.54M
Thorne Oakleigh
Director, 10 Percent Owner, Officer: Executive Chair
$803K
Moore Christopher John
Director, Officer: Chief Executive Officer
$121K
Top Sellers
Begler Michael
Officer: Evp, Coo
$1.61M
Insider Activity Analysis
Net Insider Sentiment
Positive insider sentiment with $1.86M net buying. Buying activity substantially exceeds selling, indicating insider confidence.
Buy/Sell Ratio
Strong buy/sell ratio. Buying is at least double the selling activity, suggesting robust insider confidence.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
3 insider buyers vs. 1 sellers. Broad-based buying across management team suggests widespread confidence.
Insider Activity Insight
Strong confluence of bullish signals: High buy/sell ratio, multiple insiders participating, and recent buying momentum all point to significant insider confidence. This level of coordinated buying often precedes positive developments.
No Dividend Yield Data
GOGO has not reported any dividend yield values in the available annual periods.
gogo Dividend History
Learning Layer
Related Guides
Build conviction on GOGO by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.