NASDAQ:GCT appears to be flying under the radar despite its strong fundamentals.

Last update: Jul 3, 2024

GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:GCT showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

What does the Valuation looks like 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 8 out of 10:

With a Price/Earnings ratio of 11.15, the valuation of GCT can be described as very reasonable.
Based on the Price/Earnings ratio, GCT is valued a bit cheaper than 76.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.32. GCT is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.11, the valuation of GCT can be described as reasonable.
84.62% of the companies in the same industry are more expensive than GCT, based on the Price/Forward Earnings ratio.
GCT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.13.
76.92% of the companies in the same industry are more expensive than GCT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GCT is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
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.

Profitability Assessment of NASDAQ:GCT

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:GCT, the assigned 8 is noteworthy for profitability:

GCT has a better Return On Assets (10.78%) than 84.62% of its industry peers.
GCT has a Return On Equity of 33.16%. This is amongst the best in the industry. GCT outperforms 84.62% of its industry peers.
GCT has a better Return On Invested Capital (14.25%) than 84.62% of its industry peers.
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.
The Operating Margin of GCT (15.75%) is better than 84.62% of its industry peers.

What does the Health looks like for NASDAQ:GCT

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:GCT, the assigned 6 for health provides valuable insights:

An Altman-Z score of 3.01 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.
GCT has a better Debt to FCF ratio (0.00) than 84.62% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
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.

What does the Growth looks like for NASDAQ:GCT

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:

The Earnings Per Share has grown by an impressive 302.00% over the past year.
Measured over the past years, GCT shows a very strong growth in Earnings Per Share. The EPS has been growing by 92.98% on average per year.
GCT shows a strong growth in Revenue. In the last year, 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.
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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value 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.