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Despite its impressive fundamentals, NASDAQ:GCT remains undervalued.

By Mill Chart

Last update: Mar 20, 2024

Uncover the hidden value in GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) as our stock screening tool recommends it as an undervalued choice. NASDAQ:GCT maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Insights: NASDAQ:GCT

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:GCT scores a 8 out of 10:

  • GCT's Price/Earnings ratio is rather cheap when compared to the industry. GCT is cheaper than 83.33% of the companies in the same industry.
  • GCT is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
  • GCT's Price/Forward Earnings ratio is rather cheap when compared to the industry. GCT is cheaper than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.25, GCT is valued a bit cheaper.
  • Based on the Enterprise Value to EBITDA ratio, GCT is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
  • 66.67% of the companies in the same industry are more expensive than GCT, based on the Price/Free Cash Flow ratio.
  • GCT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • GCT has an outstanding profitability rating, which may justify a higher PE ratio.
  • GCT's earnings are expected to grow with 21.07% in the coming years. This may justify a more expensive valuation.

Profitability Insights: NASDAQ:GCT

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:GCT was assigned a score of 8 for profitability:

  • Looking at the Return On Assets, with a value of 11.20%, GCT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 32.39%, GCT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 14.04%, GCT belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • GCT had an Average Return On Invested Capital over the past 3 years of 15.64%. This is above the industry average of 11.48%.
  • Looking at the Profit Margin, with a value of 13.37%, GCT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
  • GCT's Profit Margin has improved in the last couple of years.
  • GCT has a Operating Margin of 16.11%. This is amongst the best in the industry. GCT outperforms 91.67% of its industry peers.

Evaluating Health: NASDAQ:GCT

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GCT has achieved a 7 out of 10:

  • An Altman-Z score of 3.17 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.
  • With an excellent Debt to FCF ratio value of 0.00, GCT belongs to the best of the industry, outperforming 91.67% 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.
  • The Debt to Equity ratio of GCT (0.00) is better than 83.33% of its industry peers.
  • GCT has a Quick ratio of 1.31. This is in the better half of the industry: GCT outperforms 75.00% of its industry peers.

A Closer Look at Growth for NASDAQ:GCT

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 9 for growth:

  • The Earnings Per Share has grown by an impressive 539.39% over the past year.
  • The Earnings Per Share has been growing by 92.98% 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 43.63%.
  • GCT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.70% yearly.
  • Based on estimates for the next years, GCT will show a very strong growth in Earnings Per Share. The EPS will grow by 21.07% on average per year.
  • The Revenue is expected to grow by 31.93% on average over the next years. This is a very strong growth

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of GCT contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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GIGACLOUD TECHNOLOGY INC - A

NASDAQ:GCT (5/24/2024, 7:00:00 PM)

After market: 32.4996 -0.05 (-0.15%)

32.55

+0.2 (+0.62%)

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