NASDAQ:GCT stands out as a growth opportunity that won't break the bank.

Last update: Nov 11, 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.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:GCT scores a 9 out of 10:

The Earnings Per Share has grown by an impressive 192.01% 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 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.
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.

Valuation Examination for NASDAQ:GCT

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:GCT scores a 9 out of 10:

GCT is valuated reasonably with a Price/Earnings ratio of 8.21.
100.00% of the companies in the same industry are more expensive than GCT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GCT to the average of the S&P500 Index (29.30), we can say GCT is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.62, the valuation of GCT can be described as very cheap.
92.31% of the companies in the same industry are more expensive than GCT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.90, GCT is valued rather cheaply.
GCT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GCT is 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 61.54% 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.
GCT's earnings are expected to grow with 29.77% in the coming years. This may justify a more expensive valuation.

Health Assessment of 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:

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.
GCT has a better Debt to FCF ratio (0.00) than 84.62% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.00, GCT is doing good in 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.
GCT has a Quick ratio of 1.19. This is in the better half of the industry: GCT outperforms 61.54% of its industry peers.

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 has a better Return On Equity (31.79%) than 92.31% of its industry peers.
GCT has a better Return On Invested Capital (13.25%) than 84.62% of its industry peers.
GCT had an Average Return On Invested Capital over the past 3 years of 15.64%. This is above the industry average of 13.63%.
With an excellent Profit Margin value of 11.57%, GCT belongs to the best 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's Operating Margin of 13.66% is amongst the best of the industry. GCT outperforms 92.31% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

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.