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

Last update: Jan 29, 2025

Our stock screening tool has pinpointed GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as an undervalued stock option. NASDAQ:GCT retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

How do we evaluate the Valuation for NASDAQ:GCT?

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:GCT scores a 9 out of 10:

GCT is valuated cheaply with a Price/Earnings ratio of 5.47.
Based on the Price/Earnings ratio, GCT is valued cheaper than 100.00% of the companies in the same industry.
GCT is valuated cheaply when we compare the Price/Earnings ratio to 28.42, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.82, 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 24.39, GCT is valued rather cheaply.
GCT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GCT is cheaper than 100.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GCT indicates a somewhat cheap valuation: GCT is cheaper than 71.43% 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.
GCT has a very decent profitability rating, which 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.

Profitability Analysis for NASDAQ:GCT

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:GCT, the assigned 7 is a significant indicator of profitability:

GCT has a better Return On Assets (12.15%) than 85.71% of its industry peers.
The Return On Equity of GCT (32.57%) is better than 92.86% of its industry peers.
With a decent Return On Invested Capital value of 13.80%, GCT is doing good in the industry, outperforming 78.57% of the companies in the same industry.
GCT has a better Profit Margin (11.75%) than 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.

Analyzing Health Metrics

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 6 out of 10:

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 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.
GCT has a better Debt to Equity ratio (0.00) 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's Quick ratio of 1.39 is fine compared to the rest of the industry. GCT outperforms 64.29% of its industry peers.

Evaluating Growth: NASDAQ:GCT

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:GCT has achieved a 9 out of 10:

The Earnings Per Share has grown by an impressive 106.58% over the past year.
Measured over the past years, GCT shows a very strong growth in Earnings Per Share. The EPS has been growing by 92.98% on average per year.
Looking at the last year, GCT shows a very strong growth in Revenue. The Revenue has grown by 89.85%.
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
The Revenue is expected to grow by 35.40% on average over the next years. This is a very strong growth

Every day, new Decent Value stocks can be found on ChartMill 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 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.