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 15 industry peers in the Distributors industry. While GCT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: GCT is growing strongly while it also seems undervalued. These ratings would make GCT suitable for value and growth investing!
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.
GCT had positive earnings in each of the past 5 years.
GCT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.15%, GCT belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
With an excellent Return On Equity value of 32.57%, GCT belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.80%, GCT is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GCT is below the industry average of 18.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.15% | ||
| ROE | 32.57% | ||
| ROIC | 13.8% |
ROA(3y)6.48%
ROA(5y)6.94%
ROE(3y)15.7%
ROE(5y)14.55%
ROIC(3y)15.64%
ROIC(5y)20.04%
1.3 Margins
Looking at the Profit Margin, with a value of 11.75%, GCT belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Profit Margin of GCT has grown nicely.
Looking at the Operating Margin, with a value of 12.93%, GCT belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Operating Margin of GCT has remained more or less at the same level.
GCT has a Gross Margin of 26.13%. This is comparable to the rest of the industry: GCT outperforms 50.00% of its industry peers.
GCT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.93% | ||
| PM (TTM) | 11.75% | ||
| GM | 26.13% |
OM growth 3Y0.12%
OM growth 5YN/A
PM growth 3Y41.51%
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5YN/A
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.
GCT has more shares outstanding than it did 1 year ago.
The debt/assets ratio for GCT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.85 indicates that GCT is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.85, GCT is in line with its industry, outperforming 50.00% 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 Debt to FCF ratio of 0.00. This is amongst the best in the industry. GCT outperforms 85.71% 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.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.13
WACC12.24%
2.3 Liquidity
A Current Ratio of 2.13 indicates that GCT has no problem at all paying its short term obligations.
GCT's Current ratio of 2.13 is in line compared to the rest of the industry. GCT outperforms 57.14% of its industry peers.
A Quick Ratio of 1.39 indicates that GCT should not have too much problems paying its short term obligations.
GCT's Quick ratio of 1.39 is fine compared to the rest of the industry. GCT outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
GCT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 106.58%, which is quite impressive.
GCT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 92.98% yearly.
Looking at the last year, GCT shows a very strong growth in Revenue. The Revenue has grown by 89.85%.
The Revenue has been growing by 36.70% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)106.58%
EPS 3Y92.98%
EPS 5YN/A
EPS Q2Q%66.1%
Revenue 1Y (TTM)89.85%
Revenue growth 3Y36.7%
Revenue growth 5YN/A
Sales Q2Q%70.24%
3.2 Future
GCT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.60% yearly.
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.
EPS Next Y51.38%
EPS Next 2Y30.29%
EPS Next 3Y32.6%
EPS Next 5YN/A
Revenue Next Year61.73%
Revenue Next 2Y38.73%
Revenue Next 3Y35.4%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.93, the valuation of GCT can be described as very cheap.
GCT's Price/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/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.31, the valuation of GCT can be described as very cheap.
Based on the Price/Forward Earnings ratio, GCT is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GCT to the average of the S&P500 Index (22.68), we can say GCT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.93 | ||
| Fwd PE | 5.31 |
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.
Based on the Price/Free Cash Flow ratio, GCT is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.23 | ||
| EV/EBITDA | 3.23 |
4.3 Compensation for Growth
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.
A more expensive valuation may be justified as GCT's earnings are expected to grow with 32.60% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y30.29%
EPS Next 3Y32.6%
5. Dividend
5.1 Amount
No dividends for GCT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.68
-0.64 (-3.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners38.53%
Inst Owner ChangeN/A
Ins Owners7.14%
Ins Owner Change4.37%
Market Cap765.32M
Analysts80
Price Target51.59 (176.18%)
Short Float %17.42%
Short Ratio4.5
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)2
Avg EPS beat(2)43.87%
Min EPS beat(2)43.63%
Max EPS beat(2)44.1%
EPS beat(4)4
Avg EPS beat(4)45.32%
Min EPS beat(4)33.07%
Max EPS beat(4)60.46%
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)9.42%
Min Revenue beat(2)7.42%
Max Revenue beat(2)11.42%
Revenue beat(4)4
Avg Revenue beat(4)7.31%
Min Revenue beat(4)2.3%
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)0%
PT rev (3m)-1.56%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-10.37%
EPS NY rev (1m)2.17%
EPS NY rev (3m)7.01%
Revenue NQ rev (1m)-3.88%
Revenue NQ rev (3m)-11.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.93 | ||
| Fwd PE | 5.31 | ||
| P/S | 0.69 | ||
| P/FCF | 6.23 | ||
| P/OCF | 5.45 | ||
| P/B | 1.91 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 3.23 |
EPS(TTM)3.79
EY20.29%
EPS(NY)3.51
Fwd EY18.82%
FCF(TTM)3
FCFY16.04%
OCF(TTM)3.43
OCFY18.34%
SpS27.09
BVpS9.77
TBVpS9.3
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.15% | ||
| ROE | 32.57% | ||
| ROCE | 17.38% | ||
| ROIC | 13.8% | ||
| ROICexc | 20.12% | ||
| ROICexgc | 20.84% | ||
| OM | 12.93% | ||
| PM (TTM) | 11.75% | ||
| GM | 26.13% | ||
| FCFM | 11.06% |
ROA(3y)6.48%
ROA(5y)6.94%
ROE(3y)15.7%
ROE(5y)14.55%
ROIC(3y)15.64%
ROIC(5y)20.04%
ROICexc(3y)27.57%
ROICexc(5y)45.19%
ROICexgc(3y)27.88%
ROICexgc(5y)45.38%
ROCE(3y)19.7%
ROCE(5y)25.25%
ROICexcg growth 3Y-45.29%
ROICexcg growth 5YN/A
ROICexc growth 3Y-46.14%
ROICexc growth 5YN/A
OM growth 3Y0.12%
OM growth 5YN/A
PM growth 3Y41.51%
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5YN/A
F-Score5
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 220.6% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.64% | ||
| Profit Quality | 94.15% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 2.85 |
F-Score5
WACC12.24%
ROIC/WACC1.13
Cap/Depr(3y)146.05%
Cap/Depr(5y)288.77%
Cap/Sales(3y)0.4%
Cap/Sales(5y)0.44%
Profit Quality(3y)181.64%
Profit Quality(5y)160.7%
High Growth Momentum
Growth
EPS 1Y (TTM)106.58%
EPS 3Y92.98%
EPS 5YN/A
EPS Q2Q%66.1%
EPS Next Y51.38%
EPS Next 2Y30.29%
EPS Next 3Y32.6%
EPS Next 5YN/A
Revenue 1Y (TTM)89.85%
Revenue growth 3Y36.7%
Revenue growth 5YN/A
Sales Q2Q%70.24%
Revenue Next Year61.73%
Revenue Next 2Y38.73%
Revenue Next 3Y35.4%
Revenue Next 5YN/A
EBIT growth 1Y63.14%
EBIT growth 3Y36.86%
EBIT growth 5YN/A
EBIT Next Year59.04%
EBIT Next 3Y35.67%
EBIT Next 5YN/A
FCF growth 1Y165.56%
FCF growth 3Y58.15%
FCF growth 5YN/A
OCF growth 1Y197.56%
OCF growth 3Y58.87%
OCF growth 5YN/A