GIGACLOUD TECHNOLOGY INC - A (GCT) Stock Fundamental Analysis
NASDAQ:GCT - Nasdaq - KYG386441037 - Common Stock - Currency: USD
Taking everything into account, GCT scores 7 out of 10 in our fundamental rating. GCT was compared to 19 industry peers in the Distributors industry. GCT gets an excellent profitability rating and is at the same time showing great financial health properties. GCT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, GCT could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year GCT was profitable.
In the past year GCT had a positive cash flow from operations.
GCT had positive earnings in each of the past 5 years.
In the past 5 years GCT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.53%, GCT belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
GCT has a Return On Equity of 30.46%. This is amongst the best in the industry. GCT outperforms 84.21% of its industry peers.
With a decent Return On Invested Capital value of 13.32%, GCT is doing good in the industry, outperforming 78.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GCT is significantly below the industry average of 18.59%.
The 3 year average ROIC (12.84%) for GCT is below the current ROIC(13.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 30.46% | ||
| ROIC | 13.32% |
ROA(3y)8.79%
ROA(5y)8.12%
ROE(3y)23.66%
ROE(5y)18.62%
ROIC(3y)12.84%
ROIC(5y)21.37%
1.3 Margins
GCT's Profit Margin of 10.64% is amongst the best of the industry. GCT outperforms 94.74% of its industry peers.
In the last couple of years the Profit Margin of GCT has grown nicely.
Looking at the Operating Margin, with a value of 10.52%, GCT belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
In the last couple of years the Operating Margin of GCT has grown nicely.
GCT has a Gross Margin (23.90%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GCT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.52% | ||
| PM (TTM) | 10.64% | ||
| GM | 23.9% |
OM growth 3Y5.81%
OM growth 5Y23.48%
PM growth 3Y70.85%
PM growth 5Y35.51%
GM growth 3Y4.33%
GM growth 5Y6.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GCT is creating some value.
GCT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GCT has more shares outstanding
Compared to 1 year ago, GCT has an improved debt to assets ratio.
2.2 Solvency
GCT has an Altman-Z score of 2.91. This is not the best score and indicates that GCT is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.91, GCT perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
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's Debt to FCF ratio of 0.00 is amongst the best of the industry. GCT outperforms 89.47% 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.
GCT's Debt to Equity ratio of 0.00 is fine compared to the rest of the industry. GCT outperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.91 |
ROIC/WACC1.42
WACC9.37%
2.3 Liquidity
GCT has a Current Ratio of 1.98. This is a normal value and indicates that GCT is financially healthy and should not expect problems in meeting its short term obligations.
GCT has a Current ratio of 1.98. This is comparable to the rest of the industry: GCT outperforms 57.89% of its industry peers.
A Quick Ratio of 1.28 indicates that GCT should not have too much problems paying its short term obligations.
GCT has a Quick ratio (1.28) which is in line with its industry peers.
GCT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
GCT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.34%, which is quite impressive.
Measured over the past years, GCT shows a very strong growth in Earnings Per Share. The EPS has been growing by 112.78% on average per year.
The Revenue has grown by 42.90% 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 56.85% on average per year.
EPS 1Y (TTM)22.34%
EPS 3Y140.32%
EPS 5Y112.78%
EPS Q2Q%-19.05%
Revenue 1Y (TTM)42.9%
Revenue growth 3Y41%
Revenue growth 5Y56.85%
Sales Q2Q%8.3%
3.2 Future
The Earnings Per Share is expected to decrease by -12.21% on average over the next years. This is quite bad
The Revenue is expected to grow by 6.30% on average over the next years.
EPS Next Y-32.71%
EPS Next 2Y-12.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.09%
Revenue Next 2Y6.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.02, the valuation of GCT can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of GCT indicates a rather cheap valuation: GCT is cheaper than 94.74% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GCT to the average of the S&P500 Index (27.30), we can say GCT is valued rather cheaply.
The Price/Forward Earnings ratio is 7.46, which indicates a rather cheap valuation of GCT.
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 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.02 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
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 cheaply inside the industry as 89.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.72 | ||
| EV/EBITDA | 3.66 |
4.3 Compensation for Growth
The excellent profitability rating of GCT may justify a higher PE ratio.
GCT's earnings are expected to decrease with -12.21% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-12.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for GCT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.76
-0.47 (-2.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners43.74%
Inst Owner ChangeN/A
Ins Owners6.4%
Ins Owner Change17.99%
Market Cap790.33M
Analysts77.14
Price Target36.81 (77.31%)
Short Float %15.89%
Short Ratio5.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.38%
Min EPS beat(2)-6.72%
Max EPS beat(2)29.47%
EPS beat(4)3
Avg EPS beat(4)27.62%
Min EPS beat(4)-6.72%
Max EPS beat(4)44.1%
EPS beat(8)7
Avg EPS beat(8)34.77%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.59%
Min Revenue beat(2)1.57%
Max Revenue beat(2)3.62%
Revenue beat(4)4
Avg Revenue beat(4)6.01%
Min Revenue beat(4)1.57%
Max Revenue beat(4)11.42%
Revenue beat(8)8
Avg Revenue beat(8)6.18%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.48%
PT rev (3m)-3.43%
EPS NQ rev (1m)-25.45%
EPS NQ rev (3m)-33.06%
EPS NY rev (1m)-12.12%
EPS NY rev (3m)-13.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.02 | ||
| Fwd PE | 7.46 | ||
| P/S | 0.67 | ||
| P/FCF | 5.72 | ||
| P/OCF | 5.19 | ||
| P/B | 1.91 | ||
| P/tB | 2 | ||
| EV/EBITDA | 3.66 |
EPS(TTM)3.45
EY16.62%
EPS(NY)2.78
Fwd EY13.4%
FCF(TTM)3.63
FCFY17.49%
OCF(TTM)4
OCFY19.26%
SpS31.04
BVpS10.85
TBVpS10.36
PEG (NY)N/A
PEG (5Y)0.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 30.46% | ||
| ROCE | 15.56% | ||
| ROIC | 13.32% | ||
| ROICexc | 20.78% | ||
| ROICexgc | 21.56% | ||
| OM | 10.52% | ||
| PM (TTM) | 10.64% | ||
| GM | 23.9% | ||
| FCFM | 11.7% |
ROA(3y)8.79%
ROA(5y)8.12%
ROE(3y)23.66%
ROE(5y)18.62%
ROIC(3y)12.84%
ROIC(5y)21.37%
ROICexc(3y)20.27%
ROICexc(5y)49.44%
ROICexgc(3y)20.9%
ROICexgc(5y)49.81%
ROCE(3y)14.99%
ROCE(5y)24.95%
ROICexcg growth 3Y-23.03%
ROICexcg growth 5Y4.15%
ROICexc growth 3Y-24%
ROICexc growth 5Y3.36%
OM growth 3Y5.81%
OM growth 5Y23.48%
PM growth 3Y70.85%
PM growth 5Y35.51%
GM growth 3Y4.33%
GM growth 5Y6.24%
F-Score6
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 164.13% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.59% | ||
| Profit Quality | 109.94% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 2.91 |
F-Score6
WACC9.37%
ROIC/WACC1.42
Cap/Depr(3y)128.6%
Cap/Depr(5y)180.6%
Cap/Sales(3y)0.7%
Cap/Sales(5y)0.56%
Profit Quality(3y)194.48%
Profit Quality(5y)181.85%
High Growth Momentum
Growth
EPS 1Y (TTM)22.34%
EPS 3Y140.32%
EPS 5Y112.78%
EPS Q2Q%-19.05%
EPS Next Y-32.71%
EPS Next 2Y-12.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)42.9%
Revenue growth 3Y41%
Revenue growth 5Y56.85%
Sales Q2Q%8.3%
Revenue Next Year6.09%
Revenue Next 2Y6.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.57%
EBIT growth 3Y49.18%
EBIT growth 5Y93.68%
EBIT Next Year-4.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y65.09%
FCF growth 3Y176.68%
FCF growth 5Y265.01%
OCF growth 1Y80.08%
OCF growth 3Y164.32%
OCF growth 5Y167.23%