In the world of growth stocks, NASDAQ:GCT shines as a value proposition.

Last update: Dec 2, 2024

GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:GCT is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Exploring NASDAQ:GCT's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:GCT boasts a 9 out of 10:

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.
GCT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 92.98% yearly.
GCT shows a strong growth in Revenue. In the last year, the Revenue has grown by 89.85%.
The Revenue has been growing by 36.70% on average over the past years. This is a very strong growth!
GCT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.77% yearly.
The Revenue is expected to grow by 34.34% on average over the next years. This is a very strong growth

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 8 out of 10:

A Price/Earnings ratio of 6.52 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.
When comparing the Price/Earnings ratio of GCT to the average of the S&P500 Index (29.78), we can say GCT is valued rather cheaply.
The Price/Forward Earnings ratio is 6.96, which indicates a rather cheap valuation of GCT.
GCT's Price/Forward Earnings ratio is rather cheap when compared to the industry. GCT is cheaper than 100.00% of the companies in the same industry.
GCT is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.23, which is the current average of the S&P500 Index.
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.
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.

Health Examination for NASDAQ:GCT

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GCT has received a 7 out of 10:

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.
Looking at the Debt to FCF ratio, with a value of 0.00, GCT belongs to the top of the industry, outperforming 85.71% 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.
With a decent Debt to Equity ratio value of 0.00, GCT is doing good in the industry, outperforming 78.57% of the companies in the same industry.
GCT has a Current Ratio of 2.13. This indicates that GCT is financially healthy and has no problem in meeting its short term obligations.
GCT has a Current ratio of 2.13. This is in the better half of the industry: GCT outperforms 64.29% of its industry peers.
Looking at the Quick ratio, with a value of 1.39, GCT is in the better half of the industry, outperforming 64.29% of the companies in the same industry.

Profitability Assessment of 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 7 is noteworthy for profitability:

With an excellent Return On Assets value of 12.15%, GCT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
GCT's Return On Equity of 32.57% is amongst the best of the industry. GCT outperforms 85.71% of its industry peers.
GCT has a better Return On Invested Capital (13.80%) than 78.57% of its industry peers.
Looking at the Profit Margin, with a value of 11.75%, GCT belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Profit Margin of GCT has grown nicely.
With an excellent Operating Margin value of 12.93%, GCT belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.

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

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.