For those who appreciate value investing, NASDAQ:GCT is a compelling option with its solid fundamentals.

Our stock screening tool has pinpointed GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as an undervalued stock. NASDAQ:GCT maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Deciphering NASDAQ:GCT's Valuation Rating

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:GCT has received a 9 out of 10:

• The Price/Earnings ratio is 10.21, which indicates a very decent valuation of GCT.
• Based on the Price/Earnings ratio, GCT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Earnings ratio of 28.86, GCT is valued rather cheaply.
• The Price/Forward Earnings ratio is 7.42, which indicates a rather cheap valuation of GCT.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of GCT indicates a rather cheap valuation: GCT is cheaper than 84.62% of the companies listed in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 20.69. GCT is valued rather cheaply when compared to this.
• GCT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GCT is cheaper than 84.62% of the companies in the same industry.
• 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.
• GCT has an outstanding profitability rating, which 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.

Evaluating Profitability: 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:

• 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.
• Measured over the past 3 years, the Average Return On Invested Capital for GCT is above the industry average of 13.48%.
• GCT's Profit Margin of 12.74% is amongst the best of the industry. GCT outperforms 92.31% of its industry peers.
• 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 92.31% of the companies in the same industry.

Unpacking NASDAQ:GCT's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GCT has achieved 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.
• The Debt to FCF ratio of GCT (0.00) is better 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 has a Debt to Equity ratio of 0.00. This is in the better half of the industry: GCT outperforms 76.92% of its industry peers.
• GCT's Quick ratio of 1.09 is fine compared to the rest of the industry. GCT outperforms 69.23% of its industry peers.

Evaluating Growth: 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%.
• The Revenue has been growing by 36.70% on average over the past years. This is a very strong growth!
• 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.

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Check the latest full fundamental report of GCT for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.