NASDAQ:GCT is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Jun 12, 2024

Our stock screening tool has identified GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as an undervalued gem with strong fundamentals. NASDAQ:GCT boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

What does the Valuation looks like for NASDAQ:GCT

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:GCT boasts a 8 out of 10:

With a Price/Earnings ratio of 11.67, the valuation of GCT can be described as very reasonable.
Based on the Price/Earnings ratio, GCT is valued a bit cheaper than 69.23% 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 28.24.
The Price/Forward Earnings ratio is 8.46, which indicates a very decent valuation of GCT.
Based on the Price/Forward Earnings ratio, GCT is valued cheaper than 92.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.93. GCT is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, GCT is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GCT indicates a somewhat cheap valuation: GCT is cheaper than 61.54% of the companies listed 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.
A more expensive valuation may be justified as GCT's earnings are expected to grow with 29.77% in the coming years.

Evaluating Profitability: NASDAQ:GCT

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:GCT scores a 8 out of 10:

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

Health Assessment of NASDAQ:GCT

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:GCT has earned a 6 out of 10:

An Altman-Z score of 3.06 indicates that GCT is not in any danger for 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.
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.
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 fine compared to the rest of the industry. GCT outperforms 76.92% of its industry peers.
The Quick ratio of GCT (1.09) is better than 61.54% of its industry peers.

Looking at the Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:GCT, the assigned 9 reflects its growth potential:

GCT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 302.00%, which is quite impressive.
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 63.65%.
GCT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.70% yearly.
Based on estimates for the next years, GCT will show a very strong growth in Earnings Per Share. The EPS will grow by 29.77% on average per year.
GCT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.67% yearly.

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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.