40.73 USD
+2.48 (+6.48%)
40 USD
-0.73 (-1.79%)
GCT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 22 industry peers in the Distributors industry. GCT gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on GCT. This makes GCT very considerable 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.
- Each year in the past 5 years GCT had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of GCT (11.55%) is better than 81.82% of its industry peers.
- Looking at the Return On Equity, with a value of 28.39%, GCT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- The Return On Invested Capital of GCT (13.76%) is better than 81.82% of its industry peers.
- GCT had an Average Return On Invested Capital over the past 3 years of 12.84%. This is in line with the industry average of 14.54%.
- The 3 year average ROIC (12.84%) for GCT is below the current ROIC(13.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.55% | ||
| ROE | 28.39% | ||
| ROIC | 13.76% |
ROA(3y)8.79%
ROA(5y)8.11%
ROE(3y)23.66%
ROE(5y)18.61%
ROIC(3y)12.84%
ROIC(5y)21.37%
1.3 Margins
- With an excellent Profit Margin value of 10.62%, GCT belongs to the best of the industry, outperforming 100.00% 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 10.83%, GCT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- GCT's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 23.12%, GCT is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- In the last couple of years the Gross Margin of GCT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.83% | ||
| PM (TTM) | 10.62% | ||
| GM | 23.12% |
OM growth 3Y5.85%
OM growth 5Y23.47%
PM growth 3Y70.97%
PM growth 5Y35.92%
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.
- The number of shares outstanding for GCT has been increased compared to 5 years ago.
- Compared to 1 year ago, GCT has an improved debt to assets ratio.
2.2 Solvency
- GCT has an Altman-Z score of 3.65. This indicates that GCT is financially healthy and has little risk of bankruptcy at the moment.
- GCT's Altman-Z score of 3.65 is in line compared to the rest of the industry. GCT outperforms 50.00% of its industry peers.
- The Debt to FCF ratio of GCT is 0.01, which is an excellent value as it means it would take GCT, only 0.01 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.01, GCT belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
- The Debt to Equity ratio of GCT (0.00) is better than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 3.65 |
ROIC/WACC1.5
WACC9.17%
2.3 Liquidity
- A Current Ratio of 2.08 indicates that GCT has no problem at all paying its short term obligations.
- With a Current ratio value of 2.08, GCT perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
- GCT has a Quick Ratio of 1.49. This is a normal value and indicates that GCT is financially healthy and should not expect problems in meeting its short term obligations.
- GCT's Quick ratio of 1.49 is fine compared to the rest of the industry. GCT outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
- GCT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.87%.
- Measured over the past years, GCT shows a very strong growth in Earnings Per Share. The EPS has been growing by 112.74% on average per year.
- GCT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.17%.
- 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)-11.87%
EPS 3Y140.23%
EPS 5Y112.74%
EPS Q2Q%1.02%
Revenue 1Y (TTM)10.17%
Revenue growth 3Y41%
Revenue growth 5Y56.85%
Sales Q2Q%9.67%
3.2 Future
- The Earnings Per Share is expected to grow by 4.77% on average over the next years.
- GCT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.60% yearly.
EPS Next Y-12.43%
EPS Next 2Y1.7%
EPS Next 3Y4.77%
EPS Next 5YN/A
Revenue Next Year13.98%
Revenue Next 2Y10.47%
Revenue Next 3Y11.6%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- GCT is valuated correctly with a Price/Earnings ratio of 12.19.
- 77.27% of the companies in the same industry are more expensive than GCT, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, GCT is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.91, which indicates a very decent valuation of GCT.
- Based on the Price/Forward Earnings ratio, GCT is valued cheaper than 95.45% of the companies in the same industry.
- GCT is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.19 | ||
| Fwd PE | 10.91 |
4.2 Price Multiples
- GCT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GCT is cheaper than 81.82% of the companies in the same industry.
- GCT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GCT is cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.03 | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
- GCT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y1.7%
EPS Next 3Y4.77%
5. Dividend
5.1 Amount
- GCT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
GIGACLOUD TECHNOLOGY INC - A / GCT FAQ
What is the fundamental rating for GCT stock?
ChartMill assigns a fundamental rating of 7 / 10 to GCT.
What is the valuation status for GCT stock?
ChartMill assigns a valuation rating of 7 / 10 to GIGACLOUD TECHNOLOGY INC - A (GCT). This can be considered as Undervalued.
What is the profitability of GCT stock?
GIGACLOUD TECHNOLOGY INC - A (GCT) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for GCT stock?
The Price/Earnings (PE) ratio for GIGACLOUD TECHNOLOGY INC - A (GCT) is 12.19 and the Price/Book (PB) ratio is 3.3.
What is the financial health of GIGACLOUD TECHNOLOGY INC - A (GCT) stock?
The financial health rating of GIGACLOUD TECHNOLOGY INC - A (GCT) is 7 / 10.