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

Our stock screener has singled out GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as an attractive growth opportunity. NASDAQ:GCT is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Evaluating Growth: NASDAQ:GCT

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:

• The Earnings Per Share has grown by an impressive 106.58% 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
• 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!
• 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.
• The Revenue is expected to grow by 33.56% on average over the next years. This is a very strong growth

A Closer Look at Valuation for NASDAQ:GCT

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:GCT has earned a 9 for valuation:

• With a Price/Earnings ratio of 5.65, the valuation of GCT can be described as very cheap.
• 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.
• The average S&P500 Price/Earnings ratio is at 27.40. GCT is valued rather cheaply when compared to this.
• With a Price/Forward Earnings ratio of 6.01, the valuation of GCT can be described as very cheap.
• 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 23.67, which is the current average of the S&P500 Index.
• 100.00% of the companies in the same industry are more expensive than GCT, based on the Enterprise Value to EBITDA ratio.
• GCT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GCT is cheaper than 71.43% 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.
• The decent 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.

A Closer Look at Health 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 7 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 85.71% of its industry peers.
• 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.
• A Current Ratio of 2.13 indicates that GCT has no problem at all paying its short term obligations.
• The Current ratio of GCT (2.13) is better than 64.29% of its industry peers.
• 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.

Profitability Assessment of NASDAQ:GCT

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:GCT was assigned a score of 7 for profitability:

• The Return On Assets of GCT (12.15%) is better than 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.
• GCT's Profit Margin of 11.75% is amongst the best of the industry. GCT outperforms 92.86% of its industry peers.
• In the last couple of years the Profit Margin of GCT has grown nicely.
• GCT has a Operating Margin of 12.93%. This is amongst the best in the industry. GCT outperforms 92.86% of its industry peers.

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

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

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.