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NASDAQ:GCT, a growth stock which is not overvalued.

By Mill Chart

Last update: Feb 14, 2024

Consider GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as an affordable growth stock, identified by our stock screening tool. NASDAQ:GCT is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Unpacking NASDAQ:GCT's Growth Rating

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:GCT was assigned a score of 10 for growth:

  • GCT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 7560.20%, which is quite impressive.
  • The Earnings Per Share has been growing by 72.61% on average over the past years. This is a very strong growth
  • Looking at the last year, GCT shows a very strong growth in Revenue. The Revenue has grown by 24.77%.
  • GCT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 58.84% yearly.
  • The Earnings Per Share is expected to grow by 179.88% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, GCT will show a very strong growth in Revenue. The Revenue will grow by 34.82% on average per year.
  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Exploring NASDAQ:GCT's Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:GCT has achieved a 7 out of 10:

  • Compared to an average S&P500 Price/Earnings ratio of 26.01, GCT is valued a bit cheaper.
  • GCT's Price/Forward Earnings ratio is rather cheap when compared to the industry. GCT is cheaper than 90.91% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.13, GCT is valued a bit cheaper.
  • Based on the Enterprise Value to EBITDA ratio, GCT is valued cheaper than 81.82% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of GCT indicates a rather cheap valuation: GCT is cheaper than 81.82% of the companies listed in the same industry.
  • GCT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of GCT may justify a higher PE ratio.
  • GCT's earnings are expected to grow with 179.88% in the coming years. This may justify a more expensive valuation.

Exploring NASDAQ:GCT's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:GCT, the assigned 7 reflects its health status:

  • An Altman-Z score of 5.30 indicates that GCT is not in any danger for bankruptcy at the moment.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 0.00, GCT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
  • GCT has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
  • With an excellent Debt to Equity ratio value of 0.00, GCT belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
  • GCT has a Current Ratio of 2.43. This indicates that GCT is financially healthy and has no problem in meeting its short term obligations.
  • GCT has a Quick ratio of 1.84. This is amongst the best in the industry. GCT outperforms 90.91% of its industry peers.

What does the Profitability looks like for NASDAQ:GCT

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:GCT scores a 7 out of 10:

  • Looking at the Return On Assets, with a value of 11.82%, GCT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
  • The Return On Equity of GCT (24.63%) is better than 81.82% of its industry peers.
  • GCT has a better Return On Invested Capital (17.45%) than 90.91% of its industry peers.
  • GCT had an Average Return On Invested Capital over the past 3 years of 23.38%. This is significantly above the industry average of 13.78%.
  • The last Return On Invested Capital (17.45%) for GCT is well below the 3 year average (23.38%), which needs to be investigated, but indicates that GCT had better years and this may not be a problem.
  • The Profit Margin of GCT (10.71%) is better than 100.00% of its industry peers.
  • GCT's Profit Margin has improved in the last couple of years.
  • GCT's Operating Margin of 15.05% is amongst the best of the industry. GCT outperforms 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of GCT has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of GCT for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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GIGACLOUD TECHNOLOGY INC - A

NASDAQ:GCT (4/22/2024, 6:05:11 PM)

After market: 36.62 -0.47 (-1.27%)

37.09

+2.4 (+6.92%)

GCT News

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