NASDAQ:GCT, an undervalued stock with good fundamentals.

Last update: May 22, 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:

A Price/Earnings ratio of 11.15 indicates a reasonable valuation of GCT.
Based on the Price/Earnings ratio, GCT is valued a bit cheaper than 75.00% of the companies in the same industry.
GCT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.52.
The Price/Forward Earnings ratio is 8.87, which indicates a very decent valuation of GCT.
91.67% 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 20.13, GCT is valued rather cheaply.
GCT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GCT is cheaper than 75.00% 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.
GCT has an outstanding profitability rating, which 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.

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:

With an excellent Return On Assets value of 10.78%, GCT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
GCT's Return On Equity of 33.16% is amongst the best of the industry. GCT outperforms 91.67% of its industry peers.
GCT has a Return On Invested Capital of 14.25%. This is amongst the best in the industry. GCT outperforms 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GCT is above the industry average of 10.94%.
With an excellent Profit Margin value of 12.74%, GCT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
GCT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.75%, GCT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.

Health Analysis 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 7 out of 10:

GCT has an Altman-Z score of 3.00. This indicates that GCT is financially healthy and has little risk of bankruptcy at the moment.
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.
A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
GCT has a better Debt to Equity ratio (0.00) than 83.33% of its industry peers.
GCT's Quick ratio of 1.09 is fine compared to the rest of the industry. GCT outperforms 66.67% of its industry peers.

Growth Insights: NASDAQ:GCT

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 302.00% 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
The Revenue has grown by 63.65% in the past year. This is a very strong growth!
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.
The Earnings Per Share is expected to grow by 26.50% 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 33.48% on average per year.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.