NASDAQ:GCT, a growth stock which is not overvalued.

Last update: Aug 30, 2024

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.

Understanding NASDAQ:GCT's Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:GCT has earned a 9 for growth:

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.
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.
The Revenue has grown by 84.26% in the past year. This is a very strong growth!
The Revenue has been growing by 36.70% on average over the past years. This is a very strong growth!
Based on estimates for the next years, GCT will show a very strong growth in Earnings Per Share. The EPS will grow by 29.77% on average per year.
GCT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 34.34% yearly.

Valuation Assessment of 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:

With a Price/Earnings ratio of 5.91, the valuation of GCT can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of GCT indicates a rather cheap valuation: GCT is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 30.07. GCT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 5.46 indicates a rather cheap valuation of GCT.
Based on the Price/Forward Earnings ratio, GCT is valued cheaper than 84.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.69. GCT is valued rather cheaply when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GCT indicates a rather cheap valuation: GCT is cheaper than 100.00% of the companies listed 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.
A more expensive valuation may be justified as GCT's earnings are expected to grow with 29.77% in the coming years.

Evaluating Health: NASDAQ:GCT

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:GCT was assigned a score of 6 for health:

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.
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.
The Debt to Equity ratio of GCT (0.00) is better than 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.

Profitability Insights: NASDAQ:GCT

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:GCT has earned a 8 out of 10:

GCT has a Return On Assets of 10.80%. This is amongst the best in the industry. GCT outperforms 84.62% of its industry peers.
Looking at the Return On Equity, with a value of 31.79%, GCT belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.25%, GCT belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
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.
GCT has a Operating Margin of 13.66%. This is amongst the best in the industry. GCT outperforms 92.31% of its industry peers.

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

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

Keep in mind

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.