NASDAQ:GCT is showing good growth, while it is not too expensive.

Last update: Apr 22, 2024

Discover GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT), an undervalued growth gem identified by our stock screener. NASDAQ:GCT is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Growth Insights: NASDAQ:GCT

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 539.39% over the past year.
The Earnings Per Share has been growing by 92.98% 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 43.63%.
Measured over the past years, GCT shows a very strong growth in Revenue. The Revenue has been growing by 36.70% on average per year.
Based on estimates for the next years, GCT will show a very strong growth in Earnings Per Share. The EPS will grow by 26.50% on average per year.
GCT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 33.48% yearly.

A Closer Look at Valuation for 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:

66.67% 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 24.75. GCT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio, GCT is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.23. GCT is valued slightly cheaper when compared to this.
GCT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GCT is cheaper than 66.67% 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 excellent profitability rating of GCT may justify a higher PE ratio.
GCT's earnings are expected to grow with 26.50% in the coming years. This may justify a more expensive valuation.

Health Insights: NASDAQ:GCT

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GCT has received a 7 out of 10:

GCT has an Altman-Z score of 3.39. 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.
GCT's Debt to FCF ratio of 0.00 is amongst the best of the industry. GCT outperforms 91.67% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, GCT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
GCT has a Quick ratio of 1.31. This is in the better half of the industry: GCT outperforms 75.00% of its industry peers.

A Closer Look at 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 8 is a significant indicator of profitability:

GCT has a Return On Assets of 11.20%. This is amongst the best in the industry. GCT outperforms 91.67% of its industry peers.
With an excellent Return On Equity value of 32.39%, GCT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
GCT's Return On Invested Capital of 14.04% is amongst the best of the industry. GCT outperforms 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GCT is above the industry average of 11.08%.
The Profit Margin of GCT (13.37%) is better than 91.67% of its industry peers.
In the last couple of years the Profit Margin of GCT has grown nicely.
The Operating Margin of GCT (16.11%) is better than 91.67% of its industry peers.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.