Investors seeking growth at a reasonable cost should explore NASDAQ:GCT.

Last update: Jan 29, 2025

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.

Deciphering NASDAQ:GCT's Growth Rating

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.
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!
Measured over the past years, GCT shows a very strong growth in Revenue. The Revenue has been growing by 36.70% on average per year.
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 35.40% on average per year.

Evaluating Valuation: 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 9 out of 10:

A Price/Earnings ratio of 5.47 indicates a rather cheap valuation of GCT.
Based on the Price/Earnings ratio, GCT is valued 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 28.42.
GCT is valuated cheaply with a Price/Forward Earnings ratio of 5.82.
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 24.39, 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.
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.
A more expensive valuation may be justified as GCT's earnings are expected to grow with 29.77% in the coming years.

Understanding NASDAQ:GCT's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:GCT, the assigned 6 for health provides valuable insights:

The Debt to FCF ratio of GCT is 0.00, which is an excellent value as it means it would take GCT, only 0.00 years of fcf income to pay off all of its debts.
GCT has a Debt to FCF ratio of 0.00. This is amongst the best in the industry. GCT outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
GCT has a Debt to Equity ratio of 0.00. This is in the better half of the industry: GCT outperforms 78.57% of its industry peers.
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.
With a decent Quick ratio value of 1.39, GCT is doing good in the industry, outperforming 64.29% of the companies in the same industry.

Profitability Insights: 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 has a better Return On Equity (32.57%) than 92.86% of its industry peers.
GCT's Return On Invested Capital of 13.80% is fine compared to the rest of the industry. GCT outperforms 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.

Every day, new Affordable Growth stocks can be found on ChartMill 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.