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

Last update: Aug 15, 2024

Our stock screening tool has pinpointed GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as an undervalued stock option. NASDAQ:GCT retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Valuation Examination for NASDAQ:GCT

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:GCT was assigned a score of 9 for valuation:

A Price/Earnings ratio of 7.41 indicates a rather cheap valuation of GCT.
GCT's Price/Earnings ratio is rather cheap when compared to the industry. GCT is 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 29.02.
GCT is valuated cheaply with a Price/Forward Earnings ratio of 5.65.
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 20.56.
Based on the Enterprise Value to EBITDA ratio, GCT is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GCT is valued a bit cheaper than 69.23% of the companies in the same industry.
GCT's 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 38.16% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Profitability 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:

GCT's Return On Assets of 10.80% is amongst the best of the industry. GCT outperforms 84.62% of its industry peers.
With an excellent Return On Equity value of 31.79%, GCT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
GCT has a Return On Invested Capital of 13.25%. This is amongst the best in the industry. GCT outperforms 84.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GCT is above the industry average of 12.79%.
Looking at the Profit Margin, with a value of 11.57%, GCT belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Profit Margin of GCT has grown nicely.
The Operating Margin of GCT (13.66%) is better than 92.31% of its industry peers.

Assessing Health for NASDAQ:GCT

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:GCT, the assigned 6 reflects its health status:

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.
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 1.19 is fine compared to the rest of the industry. GCT outperforms 69.23% of its industry peers.

Evaluating Growth: 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:

GCT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 192.01%, which is quite impressive.
GCT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 92.98% yearly.
The Revenue has grown by 84.26% 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.
The Earnings Per Share is expected to grow by 38.16% 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 35.64% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of GCT contains the most current fundamental analsysis.

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.