In a market where value is scarce, NASDAQ:GCT offers a refreshing opportunity with its solid fundamentals.

Last update: Feb 15, 2024

Uncover the potential of GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as our stock screener's choice for an undervalued stock. NASDAQ:GCT maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Valuation Insights: NASDAQ:GCT

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:GCT scores a 6 out of 10:

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's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.38.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GCT indicates a somewhat cheap valuation: GCT is cheaper than 72.73% of the companies listed in the same industry.
GCT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GCT is cheaper than 63.64% of the companies in the same industry.
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.
GCT's earnings are expected to grow with 179.88% in the coming years. This may justify a more expensive valuation.

Analyzing Profitability Metrics

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.
GCT's Return On Equity of 24.63% is amongst the best of the industry. GCT outperforms 81.82% of its industry peers.
The Return On Invested Capital of GCT (17.45%) is better than 90.91% of its industry peers.
GCT had an Average Return On Invested Capital over the past 3 years of 23.38%. This is significantly above the industry average of 13.78%.
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.
With an excellent Profit Margin value of 10.71%, 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 Profit Margin of GCT has grown nicely.
Looking at the Operating Margin, with a value of 15.05%, GCT belongs to the top 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.

Exploring NASDAQ:GCT's Health

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:

An Altman-Z score of 5.40 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 has a better Debt to FCF ratio (0.00) than 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's Debt to Equity ratio of 0.00 is amongst the best of the industry. GCT outperforms 81.82% of its industry peers.
A Current Ratio of 2.43 indicates that GCT has no problem at all paying its short term obligations.
GCT's Quick ratio of 1.84 is amongst the best of the industry. GCT outperforms 90.91% of its industry peers.

Understanding 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 10 out of 10:

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.
GCT shows a strong growth in Revenue. In the last year, 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 179.88% on average over the next years. This is a very strong growth
GCT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 34.82% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

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Check the latest full fundamental report of GCT for a complete fundamental analysis.

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.