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GIGACLOUD TECHNOLOGY INC - A (GCT) Stock Fundamental Analysis

NASDAQ:GCT - Nasdaq - KYG386441037 - Common Stock - Currency: USD

12.73  +0.68 (+5.64%)

After market: 12.74 +0.01 (+0.08%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to GCT. GCT was compared to 17 industry peers in the Distributors industry. Both the health and profitability get an excellent rating, making GCT a very profitable company, without any liquidiy or solvency issues. GCT may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, GCT could be worth investigating further for value and quality investing!.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

GCT had positive earnings in the past year.
In the past year GCT had a positive cash flow from operations.
In the past 5 years GCT has always been profitable.
GCT had a positive operating cash flow in each of the past 5 years.
GCT Yearly Net Income VS EBIT VS OCF VS FCFGCT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 50M 100M 150M

1.2 Ratios

GCT has a Return On Assets of 11.75%. This is amongst the best in the industry. GCT outperforms 82.35% of its industry peers.
With an excellent Return On Equity value of 31.05%, GCT belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
GCT has a Return On Invested Capital of 13.90%. This is in the better half of the industry: GCT outperforms 76.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GCT is significantly below the industry average of 21.63%.
The last Return On Invested Capital (13.90%) for GCT is above the 3 year average (12.84%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 11.75%
ROE 31.05%
ROIC 13.9%
ROA(3y)8.79%
ROA(5y)8.12%
ROE(3y)23.66%
ROE(5y)18.62%
ROIC(3y)12.84%
ROIC(5y)21.37%
GCT Yearly ROA, ROE, ROICGCT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

Looking at the Profit Margin, with a value of 10.84%, GCT belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
GCT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.27%, GCT belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
GCT's Operating Margin has improved in the last couple of years.
GCT's Gross Margin of 24.57% is in line compared to the rest of the industry. GCT outperforms 52.94% of its industry peers.
GCT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 11.27%
PM (TTM) 10.84%
GM 24.57%
OM growth 3Y5.81%
OM growth 5Y23.48%
PM growth 3Y70.85%
PM growth 5Y35.51%
GM growth 3Y4.33%
GM growth 5Y6.24%
GCT Yearly Profit, Operating, Gross MarginsGCT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 5 10 15 20 25

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GCT is still creating some value.
Compared to 1 year ago, GCT has less shares outstanding
GCT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GCT has an improved debt to assets ratio.
GCT Yearly Shares OutstandingGCT Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
GCT Yearly Total Debt VS Total AssetsGCT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

GCT has an Altman-Z score of 2.66. 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 2.66, GCT perfoms like the industry average, outperforming 47.06% 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 has a better Debt to FCF ratio (0.00) than 88.24% 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 has a better Debt to Equity ratio (0.00) than 82.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.66
ROIC/WACC1.25
WACC11.11%
GCT Yearly LT Debt VS Equity VS FCFGCT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.3 Liquidity

GCT has a Current Ratio of 2.07. This indicates that GCT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GCT (2.07) is better than 64.71% of its industry peers.
GCT has a Quick Ratio of 1.42. This is a normal value and indicates that GCT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.42, GCT is doing good in the industry, outperforming 70.59% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.07
Quick Ratio 1.42
GCT Yearly Current Assets VS Current LiabilitesGCT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 32.81% over the past year.
The Earnings Per Share has been growing by 112.78% on average over the past years. This is a very strong growth
GCT shows a strong growth in Revenue. In the last year, the Revenue has grown by 64.97%.
The Revenue has been growing by 56.85% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)32.81%
EPS 3Y140.32%
EPS 5Y112.78%
EPS Q2Q%-19.15%
Revenue 1Y (TTM)64.97%
Revenue growth 3Y41%
Revenue growth 5Y56.85%
Sales Q2Q%20.86%

3.2 Future

The Earnings Per Share is expected to decrease by -3.91% on average over the next years.
The Revenue is expected to grow by 6.84% on average over the next years.
EPS Next Y-22.31%
EPS Next 2Y-3.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.17%
Revenue Next 2Y6.84%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
GCT Yearly Revenue VS EstimatesGCT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
GCT Yearly EPS VS EstimatesGCT Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 1 2 3

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8

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 3.53, the valuation of GCT can be described as very cheap.
Based on the Price/Earnings ratio, GCT is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. GCT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 4.54, 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/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, GCT is valued rather cheaply.
Industry RankSector Rank
PE 3.53
Fwd PE 4.54
GCT Price Earnings VS Forward Price EarningsGCT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GCT is valued cheaper than 100.00% of the companies in the same industry.
88.24% of the companies in the same industry are more expensive than GCT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 3.58
EV/EBITDA 1.19
GCT Per share dataGCT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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 -3.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.03
EPS Next 2Y-3.91%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

GCT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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GIGACLOUD TECHNOLOGY INC - A

NASDAQ:GCT (4/17/2025, 8:24:17 PM)

After market: 12.74 +0.01 (+0.08%)

12.73

+0.68 (+5.64%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)03-03 2025-03-03/amc
Earnings (Next)05-09 2025-05-09/bmo
Inst Owners42.35%
Inst Owner ChangeN/A
Ins Owners7.24%
Ins Owner Change18.17%
Market Cap510.09M
Analysts77.14
Price Target38.12 (199.45%)
Short Float %20.36%
Short Ratio5.03
Dividend
Industry RankSector 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)18.69%
Min EPS beat(2)-6.72%
Max EPS beat(2)44.1%
EPS beat(4)3
Avg EPS beat(4)28.52%
Min EPS beat(4)-6.72%
Max EPS beat(4)44.1%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)4.49%
Min Revenue beat(2)1.57%
Max Revenue beat(2)7.42%
Revenue beat(4)4
Avg Revenue beat(4)5.68%
Min Revenue beat(4)1.57%
Max Revenue beat(4)11.42%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-26.1%
PT rev (3m)-26.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.67%
EPS NY rev (1m)-20.21%
EPS NY rev (3m)-21.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.9%
Revenue NY rev (1m)-2.76%
Revenue NY rev (3m)-9.94%
Valuation
Industry RankSector Rank
PE 3.53
Fwd PE 4.54
P/S 0.44
P/FCF 3.58
P/OCF 3.23
P/B 1.26
P/tB 1.32
EV/EBITDA 1.19
EPS(TTM)3.61
EY28.36%
EPS(NY)2.8
Fwd EY22.03%
FCF(TTM)3.56
FCFY27.94%
OCF(TTM)3.95
OCFY30.99%
SpS28.98
BVpS10.11
TBVpS9.64
PEG (NY)N/A
PEG (5Y)0.03
Profitability
Industry RankSector Rank
ROA 11.75%
ROE 31.05%
ROCE 16.23%
ROIC 13.9%
ROICexc 22.25%
ROICexgc 23.11%
OM 11.27%
PM (TTM) 10.84%
GM 24.57%
FCFM 12.28%
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-Score7
Asset Turnover1.08
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 182.26%
Cap/Sales 1.34%
Interest Coverage 250
Cash Conversion 113.45%
Profit Quality 113.3%
Current Ratio 2.07
Quick Ratio 1.42
Altman-Z 2.66
F-Score7
WACC11.11%
ROIC/WACC1.25
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)32.81%
EPS 3Y140.32%
EPS 5Y112.78%
EPS Q2Q%-19.15%
EPS Next Y-22.31%
EPS Next 2Y-3.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)64.97%
Revenue growth 3Y41%
Revenue growth 5Y56.85%
Sales Q2Q%20.86%
Revenue Next Year7.17%
Revenue Next 2Y6.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y15.4%
EBIT growth 3Y49.18%
EBIT growth 5Y93.68%
EBIT Next Year3.77%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y10.44%
FCF growth 3Y176.68%
FCF growth 5Y265.01%
OCF growth 1Y18.45%
OCF growth 3Y164.32%
OCF growth 5Y167.23%