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In the world of growth stocks, NASDAQ:GCT shines as a value proposition.

By Mill Chart

Last update: Apr 1, 2024

GIGACLOUD TECHNOLOGY INC - A (NASDAQ:GCT) was identified as an affordable growth stock by our stock screener. NASDAQ:GCT is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

What does the Growth looks like for NASDAQ:GCT

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:GCT, the assigned 9 reflects its growth potential:

  • GCT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 539.39%, which is quite impressive.
  • Measured over the past years, GCT shows a very strong growth in Earnings Per Share. The EPS has been growing by 92.98% on average per year.
  • 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.
  • GCT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.93% yearly.

Unpacking NASDAQ:GCT's Valuation Rating

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 8 out of 10:

  • GCT is valuated reasonably with a Price/Earnings ratio of 11.62.
  • Based on the Price/Earnings ratio, GCT is valued a bit cheaper than 75.00% of the companies in the same industry.
  • GCT is valuated cheaply when we compare the Price/Earnings ratio to 26.50, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 10.95, which indicates a very decent valuation of GCT.
  • Based on the Price/Forward Earnings ratio, GCT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of GCT to the average of the S&P500 Index (22.80), we can say GCT is valued rather cheaply.
  • 83.33% of the companies in the same industry are more expensive than GCT, based on the Enterprise Value to EBITDA 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.

What does the Health looks like for NASDAQ:GCT

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:GCT has earned a 7 out of 10:

  • An Altman-Z score of 3.03 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.
  • GCT's Debt to FCF ratio of 0.00 is amongst the best of the industry. GCT outperforms 91.67% 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.
  • GCT has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. GCT outperforms 83.33% of its industry peers.
  • With a decent Quick ratio value of 1.31, GCT is doing good in the industry, outperforming 75.00% of the companies in the same industry.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:GCT has achieved a 8:

  • The Return On Assets of GCT (11.20%) is better than 91.67% of its industry peers.
  • The Return On Equity of GCT (32.39%) is better than 91.67% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 14.04%, GCT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for GCT is above the industry average of 10.99%.
  • GCT has a Profit Margin of 13.37%. This is amongst the best in the industry. GCT outperforms 91.67% of its industry peers.
  • GCT's Profit Margin has improved in the last couple of years.
  • GCT has a better Operating Margin (16.11%) than 91.67% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

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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