For those who appreciate growth without the sticker shock, NASDAQ:GCT is worth considering.

Last update: Jun 4, 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.

Analyzing Growth Metrics

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:GCT has earned a 9 for growth:

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 29.77% 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 31.67% on average per year.

Understanding NASDAQ:GCT's Valuation Score

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:

A Price/Earnings ratio of 11.55 indicates a reasonable valuation of GCT.
76.92% of the companies in the same industry are more expensive than GCT, based on the Price/Earnings ratio.
GCT is valuated cheaply when we compare the Price/Earnings ratio to 27.88, which is the current average of the S&P500 Index.
GCT is valuated reasonably with a Price/Forward Earnings ratio of 8.37.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GCT indicates a rather cheap valuation: GCT is cheaper than 92.31% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GCT to the average of the S&P500 Index (19.97), we can say GCT is valued rather cheaply.
76.92% of the companies in the same industry are more expensive than GCT, based on the Enterprise Value to EBITDA ratio.
69.23% 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.
The excellent profitability rating of GCT may justify a higher PE ratio.
GCT's earnings are expected to grow with 29.77% in the coming years. This may justify a more expensive valuation.

Health Analysis for NASDAQ:GCT

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:GCT scores a 6 out of 10:

An Altman-Z score of 3.05 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.
Looking at the Debt to FCF ratio, with a value of 0.00, GCT belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
The Debt to Equity ratio of GCT (0.00) is better than 76.92% of its industry peers.
GCT has a better Quick ratio (1.09) than 61.54% of its industry peers.

Profitability Examination 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:

Looking at the Return On Assets, with a value of 10.78%, GCT belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
The Return On Equity of GCT (33.16%) is better than 84.62% of its industry peers.
GCT has a better Return On Invested Capital (14.25%) than 84.62% of its industry peers.
With an excellent Profit Margin value of 12.74%, GCT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
GCT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.75%, GCT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

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.