NASDAQ:GCT stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Jan 3, 2024

Discover GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT)—an undervalued stock our stock screener has picked out. NASDAQ:GCT demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Assessing Valuation Metrics for NASDAQ:GCT

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:

63.64% of the companies in the same industry are more expensive than GCT, based on the Price/Earnings ratio.
GCT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
The Price/Forward Earnings ratio is 10.11, which indicates a very decent valuation of GCT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GCT indicates a rather cheap valuation: GCT is cheaper than 90.91% of the companies listed in the same industry.
GCT is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.90, which is the current average of the S&P500 Index.
GCT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GCT is cheaper than 100.00% of the companies in the same industry.
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.

How do we evaluate the Profitability for 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:

Looking at the Return On Assets, with a value of 11.82%, GCT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
GCT's Return On Equity of 24.63% is amongst the best of the industry. GCT outperforms 81.82% of its industry peers.
GCT has a better Return On Invested Capital (17.45%) than 90.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GCT is significantly above the industry average of 13.87%.
The last Return On Invested Capital (17.45%) for GCT is well below the 3 year average (23.38%), which needs to be investigated, but indicates that GCT had better years and this may not be a problem.
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.
The Operating Margin of GCT (15.05%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of GCT has grown nicely.

Evaluating Health: NASDAQ:GCT

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:GCT, the assigned 7 reflects its health status:

An Altman-Z score of 4.27 indicates that GCT is not in any danger for bankruptcy at the moment.
The Debt to FCF ratio of GCT is 0.00, which is an excellent value as it means it would take GCT, only 0.00 years of fcf income to pay off 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.
A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, GCT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
A Current Ratio of 2.43 indicates that GCT has no problem at all paying its short term obligations.
GCT has a Quick ratio of 1.84. This is amongst the best in the industry. GCT outperforms 90.91% of its industry peers.

Understanding NASDAQ:GCT's Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:GCT was assigned a score of 9 for growth:

GCT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 7560.20%, which is quite impressive.
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%.
GCT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 58.84% yearly.
Based on estimates for the next years, GCT will show a very strong growth in Earnings Per Share. The EPS will grow by 157.32% on average per year.
The Revenue is expected to grow by 16.78% on average over the next years. This is quite good.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value 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.