Investors seeking growth at a reasonable cost should explore NASDAQ:GCT.

Last update: Mar 8, 2024

Here's GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) for you, a growth stock our stock screener believes is undervalued. NASDAQ:GCT is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Understanding NASDAQ:GCT's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:GCT has received a 10 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%.
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
Based on estimates for the next years, GCT will show a very strong growth in Revenue. The Revenue will grow by 34.57% on average per year.
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.

What does the Valuation looks like for NASDAQ:GCT

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:GCT, the assigned 6 reflects its valuation:

83.33% of the companies in the same industry are more expensive than GCT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.06, GCT is valued a bit cheaper.
Based on the Price/Free Cash Flow ratio, GCT is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
GCT's 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 179.88% in the coming years.

A Closer Look at Health for NASDAQ:GCT

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:GCT has earned a 8 out of 10:

GCT has an Altman-Z score of 5.51. This indicates that GCT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.51, GCT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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 has a better Debt to FCF ratio (0.00) than 91.67% 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 83.33% of its industry peers.
A Current Ratio of 2.43 indicates that GCT has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 1.84, GCT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.

Evaluating Profitability: NASDAQ:GCT

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:GCT was assigned a score of 7 for profitability:

Looking at the Return On Assets, with a value of 11.82%, GCT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
GCT's Return On Equity of 24.63% is amongst the best of the industry. GCT outperforms 83.33% of its industry peers.
GCT has a better Return On Invested Capital (17.45%) than 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GCT is significantly above the industry average of 12.03%.
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 91.67% 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 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of GCT has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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.