NASDAQ:GCT is not too expensive for the growth it is showing.

Discover GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT), an undervalued growth gem identified by our stock screener. NASDAQ:GCT is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Growth Examination 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:

• The Earnings Per Share has grown by an impressive 106.58% over the past year.
• 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%.
• 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.
• Based on estimates for the next years, GCT will show a very strong growth in Earnings Per Share. The EPS will grow by 32.60% on average per year.
• GCT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 35.40% yearly.

How do we evaluate the Valuation for 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:

• The Price/Earnings ratio is 5.35, which indicates a rather cheap valuation of GCT.
• 100.00% of the companies in the same industry are more expensive than GCT, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 30.43. GCT is valued rather cheaply when compared to this.
• With a Price/Forward Earnings ratio of 5.76, the valuation of GCT can be described as very cheap.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of GCT indicates a rather cheap valuation: GCT is cheaper than 100.00% of the companies listed in the same industry.
• GCT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.78.
• 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.
• 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.
• GCT's 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.
• A more expensive valuation may be justified as GCT's earnings are expected to grow with 32.60% in the coming years.

Health Insights: NASDAQ:GCT

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:GCT, the assigned 6 reflects its health status:

• 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.
• The Debt to Equity ratio of GCT (0.00) is better than 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 Analysis for NASDAQ:GCT

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:GCT scores a 7 out of 10:

• GCT has a Return On Assets of 12.15%. This is amongst the best in the industry. GCT outperforms 85.71% of its industry peers.
• The Return On Equity of GCT (32.57%) is better than 92.86% of its industry peers.
• GCT has a better Return On Invested Capital (13.80%) 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.
• GCT's Profit Margin has improved in the last couple of years.
• 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.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.