NASDAQ:GCT: good value for what you're paying.

Last update: Nov 8, 2024

GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) was identified as a decent value stock by our stock screener. NASDAQ:GCT scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Analyzing Valuation Metrics

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:

A Price/Earnings ratio of 7.01 indicates a rather cheap valuation of GCT.
100.00% of the companies in the same industry are more expensive than GCT, based on the Price/Earnings ratio.
GCT is valuated cheaply when we compare the Price/Earnings ratio to 28.94, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.50, which indicates a rather cheap valuation of GCT.
Based on the Price/Forward Earnings ratio, GCT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
GCT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.03.
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.
GCT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GCT is cheaper than 69.23% of the companies in the same industry.
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.
A more expensive valuation may be justified as GCT's earnings are expected to grow with 29.77% in the coming years.

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:

GCT's Return On Assets of 10.80% is amongst the best of the industry. GCT outperforms 84.62% of its industry peers.
GCT's Return On Equity of 31.79% is amongst the best of the industry. GCT outperforms 92.31% of its industry peers.
With an excellent Return On Invested Capital value of 13.25%, GCT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
The Profit Margin of GCT (11.57%) is better than 92.31% of its industry peers.
GCT's Profit Margin has improved in the last couple of years.
GCT's Operating Margin of 13.66% is amongst the best of the industry. GCT outperforms 92.31% of its industry peers.

Health Analysis for NASDAQ:GCT

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:

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.
With an excellent Debt to FCF ratio value of 0.00, GCT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
GCT has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, GCT is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
With a decent Current ratio value of 1.98, GCT is doing good in the industry, outperforming 61.54% of the companies in the same industry.
With a decent Quick ratio value of 1.19, GCT is doing good in the industry, outperforming 61.54% of the companies in the same industry.

Growth Insights: 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:

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.
Looking at the last year, GCT shows a very strong growth in Revenue. The Revenue has grown by 84.26%.
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 34.34% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.