NASDAQ:GCT stands out as a growth opportunity that won't break the bank.

Last update: Jan 3, 2024

Take a closer look at GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT), an affordable growth stock uncovered by our stock screener. NASDAQ:GCT boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Exploring NASDAQ:GCT's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:GCT boasts a 9 out of 10:

The Earnings Per Share has grown by an impressive 7560.20% over the past year.
Measured over the past years, GCT shows a very strong growth in Earnings Per Share. The EPS has been growing by 72.61% on average per year.
Looking at the last year, GCT shows a very strong growth in Revenue. The Revenue has grown by 24.77%.
The Revenue has been growing by 58.84% on average over the past years. This is a very strong growth!
The Earnings Per Share is expected to grow by 157.32% on average over the next years. This is a very strong growth
GCT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.78% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Understanding NASDAQ:GCT's Valuation Score

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:GCT was assigned a score of 8 for valuation:

Based on the Price/Earnings ratio, GCT is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
GCT is valuated rather cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.11, the valuation of GCT can be described as very reasonable.
90.91% of the companies in the same industry are more expensive than GCT, based on the Price/Forward Earnings ratio.
GCT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.90.
Based on the Enterprise Value to EBITDA ratio, GCT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
72.73% of the companies in the same industry are more expensive than GCT, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GCT may justify a higher PE ratio.
A more expensive valuation may be justified as GCT's earnings are expected to grow with 157.32% in the coming years.

Deciphering NASDAQ:GCT's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:GCT, the assigned 7 for health provides valuable insights:

An Altman-Z score of 4.27 indicates that GCT is not in any danger for bankruptcy at the moment.
GCT has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
GCT's Debt to FCF ratio of 0.00 is amongst the best of the industry. GCT outperforms 90.91% of its industry peers.
GCT has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
GCT has a better Debt to Equity ratio (0.00) than 90.91% of its industry peers.
A Current Ratio of 2.43 indicates that GCT has no problem at all paying its short term obligations.
GCT has a better Quick ratio (1.84) than 90.91% of its industry peers.

Evaluating Profitability: NASDAQ:GCT

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:GCT, the assigned 7 is a significant indicator of profitability:

With an excellent Return On Assets value of 11.82%, GCT belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
The Return On Equity of GCT (24.63%) is better than 81.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.45%, GCT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GCT is significantly above the industry average of 13.87%.
The 3 year average ROIC (23.38%) for GCT is well above the current ROIC(17.45%). The reason for the recent decline needs to be investigated.
The Profit Margin of GCT (10.71%) is better than 100.00% of its industry peers.
GCT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.05%, GCT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of GCT has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of GCT contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.