NASDAQ:GCT is not too expensive for the growth it is showing.

Our stock screener has singled out GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as an attractive growth opportunity. NASDAQ:GCT is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Growth Assessment of NASDAQ:GCT

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:GCT has received a 9 out of 10:

• 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.
• Based on estimates for the next years, GCT will show a very strong growth in Earnings Per Share. The EPS will grow by 38.16% on average per year.
• Based on estimates for the next years, GCT will show a very strong growth in Revenue. The Revenue will grow by 35.64% on average per year.

Valuation Analysis 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 9 out of 10:

• Based on the Price/Earnings ratio of 9.06, the valuation of GCT can be described as reasonable.
• Based on the Price/Earnings ratio, GCT is valued cheaper than 100.00% 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 28.66.
• Based on the Price/Forward Earnings ratio of 6.45, the valuation of GCT can be described as very cheap.
• Based on the Price/Forward Earnings ratio, GCT is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
• GCT is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.17, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, GCT is valued cheaper than 92.31% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, GCT is valued a bit cheaper than the industry average as 69.23% 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.
• GCT has an outstanding profitability rating, which may justify a higher PE ratio.
• GCT's earnings are expected to grow with 38.16% in the coming years. This may justify a more expensive valuation.

ChartMill's Evaluation of Health

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:

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

Understanding NASDAQ:GCT's Profitability

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:

• GCT has a better Return On Assets (10.78%) than 84.62% of its industry peers.
• GCT's Return On Equity of 33.16% is amongst the best of the industry. GCT outperforms 92.31% 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 12.90%.
• 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.
• GCT has a better Operating Margin (15.75%) than 92.31% of its industry peers.

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

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

Keep in mind

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.