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

Our stock screening tool has pinpointed GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as a growth stock that isn't overvalued. NASDAQ:GCT is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

How do we evaluate the Growth for 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 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.
• GCT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.77% yearly.
• The Revenue is expected to grow by 31.67% on average over the next years. This is a very strong growth

Evaluating Valuation: NASDAQ:GCT

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 9 out of 10:

• The Price/Earnings ratio is 10.85, which indicates a very decent valuation of GCT.
• Based on the Price/Earnings ratio, GCT is valued cheaper than 84.62% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 29.53, GCT is valued rather cheaply.
• A Price/Forward Earnings ratio of 7.89 indicates a rather cheap valuation of GCT.
• 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 20.94.
• GCT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GCT is cheaper than 76.92% of the companies in the same industry.
• 61.54% of the companies in the same industry are more expensive than GCT, based on the Price/Free Cash Flow ratio.
• GCT's 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.

Unpacking NASDAQ:GCT's Health Rating

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:

• 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 84.62% of its industry peers.
• 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.
• GCT has a better Quick ratio (1.09) than 61.54% of its industry peers.

Profitability Analysis for 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.
• With an excellent Return On Equity value of 33.16%, GCT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 14.25%, GCT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
• GCT's Profit Margin of 12.74% is amongst the best of the industry. GCT outperforms 84.62% of its industry peers.
• 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.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

This article should in no way be interpreted as advice. 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.