GCT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 22 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make GCT suitable for value and quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years GCT has always been profitable.
GCT had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

GCT has a better Return On Assets (11.55%) than 81.82% of its industry peers.
The Return On Equity of GCT (28.39%) is better than 90.91% of its industry peers.
GCT has a Return On Invested Capital of 13.76%. This is amongst the best in the industry. GCT outperforms 81.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GCT is in line with the industry average of 14.50%.
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

GCT has a Profit Margin of 10.62%. This is amongst the best in the industry. GCT outperforms 100.00% of its industry peers.
GCT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 10.83%, GCT belongs to the best 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.
GCT has a better Gross Margin (23.12%) than 72.73% of its industry peers.
GCT's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
The number of shares outstanding for GCT has been increased compared to 5 years ago.
The debt/assets ratio for GCT has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.69 indicates that GCT is not in any danger for bankruptcy at the moment.
GCT has a Altman-Z score (3.69) which is comparable to the rest of the industry.
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.
GCT has a Debt to FCF ratio of 0.01. This is amongst the best in the industry. GCT outperforms 90.91% 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.
Looking at the Debt to Equity ratio, with a value of 0.00, GCT is in the better half of the industry, outperforming 77.27% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0.01
Altman-Z	3.69

ROIC/WACC1.5

WACC9.2%

2.3 Liquidity

A Current Ratio of 2.08 indicates that GCT has no problem at all paying its short term obligations.
GCT's Current ratio of 2.08 is in line compared to the rest of the industry. GCT outperforms 59.09% of its industry peers.
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 has a better Quick ratio (1.49) than 72.73% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.08
Quick Ratio	1.49

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WACC

Debt/Equity

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Altman-Z score

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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.
The Revenue has grown by 10.17% in the past year. This is quite good.
The Revenue has been growing by 56.85% on average over the past years. This is a very strong growth!

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

GCT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.77% yearly.
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

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.59 indicates a correct valuation of GCT.
Based on the Price/Earnings ratio, GCT is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
GCT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
GCT is valuated reasonably with a Price/Forward Earnings ratio of 11.26.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GCT indicates a rather cheap valuation: GCT is cheaper than 95.45% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. GCT is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	12.59
Fwd PE	11.26

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GCT indicates a rather cheap valuation: GCT is cheaper than 81.82% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GCT is valued cheaper than 81.82% of the companies in the same industry.