NASDAQ:GCT stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Jan 7, 2025

Our stock screening tool has pinpointed GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as an undervalued stock. NASDAQ:GCT maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Assessment of 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:

A Price/Earnings ratio of 5.65 indicates a rather cheap valuation of GCT.
Compared to the rest of the industry, the Price/Earnings ratio of GCT indicates a rather cheap valuation: GCT is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, GCT is valued rather cheaply.
GCT is valuated cheaply with a Price/Forward Earnings ratio of 6.01.
Based on the Price/Forward Earnings ratio, GCT is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.67. GCT is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, GCT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GCT is valued a bit cheaper than 71.43% of the companies in the same industry.
GCT's 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.

Assessing Profitability for 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.
Looking at the Return On Equity, with a value of 32.57%, GCT belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Invested Capital of GCT (13.80%) is better 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.
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.

Analyzing Health Metrics

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.
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.
GCT has a better Current ratio (2.13) than 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.

A Closer Look at Growth for NASDAQ:GCT

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:GCT was assigned a score of 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.
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 89.85%.
GCT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.70% yearly.
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 33.56% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Disclaimer

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.