For those who appreciate value investing, NASDAQ:GCT is a compelling option with its solid fundamentals.

Last update: Jan 24, 2024

Our stock screener has spotted GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as an undervalued stock with solid fundamentals. NASDAQ:GCT shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Evaluating Valuation: NASDAQ:GCT

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:GCT has achieved a 8 out of 10:

63.64% of the companies in the same industry are more expensive than GCT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.98. GCT is valued slightly cheaper when compared to this.
GCT is valuated reasonably with a Price/Forward Earnings ratio of 11.10.
Based on the Price/Forward Earnings ratio, GCT is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
GCT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.90, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, GCT is valued 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.
GCT has a very decent profitability rating, which may justify a higher PE ratio.
GCT's earnings are expected to grow with 157.32% in the coming years. This may justify a more expensive valuation.

Profitability Assessment of NASDAQ:GCT

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:GCT has achieved a 7:

GCT has a Return On Assets of 11.82%. This is amongst the best in the industry. GCT outperforms 90.91% of its industry peers.
GCT's Return On Equity of 24.63% is amongst the best of the industry. GCT outperforms 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.
Measured over the past 3 years, the Average Return On Invested Capital for GCT is significantly above the industry average of 13.78%.
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.
GCT has a better Profit Margin (10.71%) than 100.00% of its industry peers.
GCT's Profit Margin has improved in the last couple of years.
GCT has a Operating Margin of 15.05%. This is amongst the best in the industry. GCT outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of GCT has grown nicely.

Health Assessment of NASDAQ:GCT

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GCT has achieved a 7 out of 10:

GCT has an Altman-Z score of 4.45. This indicates that GCT is financially healthy and has little risk of 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.
With an excellent Debt to FCF ratio value of 0.00, GCT belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
GCT has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.00, GCT belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
GCT has a Current Ratio of 2.43. This indicates that GCT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 1.84, GCT belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.

Unpacking NASDAQ:GCT's Growth Rating

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:GCT scores a 9 out of 10:

The Earnings Per Share has grown by an impressive 7560.20% over the past year.
The Earnings Per Share has been growing by 72.61% on average over the past years. This is a very strong growth
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.
The Earnings Per Share is expected to grow by 157.32% on average over the next years. This is a very strong growth
Based on estimates for the next years, GCT will show a quite strong growth in Revenue. The Revenue will grow by 16.78% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of GCT

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.