Don't overlook NASDAQ:GCT—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Nov 29, 2024

Discover GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT), an undervalued stock highlighted by our stock screener. NASDAQ:GCT showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

A Closer Look at Valuation 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 8 out of 10:

The Price/Earnings ratio is 6.54, which 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 29.55.
With a Price/Forward Earnings ratio of 6.76, the valuation of GCT can be described as very cheap.
100.00% 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 24.22, GCT is valued rather cheaply.
100.00% of the companies in the same industry are more expensive than GCT, based on the Enterprise Value to EBITDA ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GCT 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.

What does the Profitability looks like for 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 7 out of 10:

GCT's Return On Assets of 12.15% is amongst the best of the industry. GCT outperforms 85.71% of its industry peers.
GCT's Return On Equity of 32.57% is amongst the best of the industry. GCT outperforms 85.71% of its industry peers.
The Return On Invested Capital of GCT (13.80%) is better than 78.57% of its industry peers.
The Profit Margin of GCT (11.75%) is better than 92.86% of its industry peers.
GCT's Profit Margin has improved in the last couple of years.
GCT has a Operating Margin of 12.93%. This is amongst the best in the industry. GCT outperforms 92.86% of its industry peers.

Understanding NASDAQ:GCT's Health Score

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 7 reflects its health status:

An Altman-Z score of 3.05 indicates that GCT is not in any danger for bankruptcy at the moment.
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 85.71% of its industry peers.
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 78.57% of its industry peers.
A Current Ratio of 2.13 indicates that GCT has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.13, GCT is doing good in the industry, outperforming 64.29% of the companies in the same industry.
GCT has a Quick ratio of 1.39. This is in the better half of the industry: GCT outperforms 64.29% of its industry peers.

A Closer Look at Growth for NASDAQ:GCT

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 106.58%, which is quite impressive.
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 89.85% in the past year. This is a very strong growth!
GCT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.70% yearly.
GCT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.77% yearly.
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.

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

For an up to date full fundamental analysis you can check the fundamental report of GCT

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.