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

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.

Analyzing Valuation Metrics

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:

• A Price/Earnings ratio of 5.35 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 30.43, GCT is valued rather cheaply.
• A Price/Forward Earnings ratio of 5.76 indicates a rather cheap valuation of GCT.
• 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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
• 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.
• GCT has a very decent profitability rating, which may justify a higher PE ratio.
• GCT's earnings are expected to grow with 32.60% in the coming years. This may justify a more expensive valuation.

Profitability Analysis for NASDAQ:GCT

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:GCT has achieved a 7:

• 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.
• GCT has a Return On Equity of 32.57%. This is amongst the best in the industry. GCT outperforms 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'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.

Health Assessment of NASDAQ:GCT

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:GCT has earned 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.
• With an excellent Debt to FCF ratio value of 0.00, GCT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
• A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
• 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.
• 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.
• 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.

How We Gauge Growth for 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.
• 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 32.60% 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.

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