NASDAQ:GCT is not too expensive for the growth it is showing.

Last update: May 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.

Exploring NASDAQ:GCT's Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:GCT has achieved a 9 out of 10:

The Earnings Per Share has grown by an impressive 538.54% over the past year.
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 43.63%.
Measured over the past years, GCT shows a very strong growth in Revenue. The Revenue has been growing by 36.70% on average per year.
Based on estimates for the next years, GCT will show a very strong growth in Earnings Per Share. The EPS will grow by 26.50% on average per year.
The Revenue is expected to grow by 33.48% on average over the next years. This is a very strong growth

Evaluating Valuation: NASDAQ:GCT

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:GCT has earned a 6 for valuation:

66.67% of the companies in the same industry are more expensive than GCT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GCT to the average of the S&P500 Index (28.32), we can say GCT is valued slightly cheaper.
83.33% of the companies in the same industry are more expensive than GCT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.24, GCT is valued a bit cheaper.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GCT indicates a somewhat cheap valuation: GCT is cheaper than 66.67% of the companies listed in the same industry.
The 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 26.50% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for 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:

GCT has an Altman-Z score of 3.47. This indicates that GCT is financially healthy and has little risk of bankruptcy at the moment.
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's Debt to FCF ratio of 0.01 is amongst the best of the industry. GCT outperforms 91.67% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GCT is not too dependend on debt financing.
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.
GCT's Quick ratio of 1.27 is fine compared to the rest of the industry. GCT outperforms 75.00% of its industry peers.

Assessing Profitability for NASDAQ:GCT

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:

GCT has a Return On Assets of 11.11%. This is amongst the best in the industry. GCT outperforms 91.67% of its industry peers.
GCT has a Return On Equity of 32.39%. This is amongst the best in the industry. GCT outperforms 91.67% of its industry peers.
GCT has a better Return On Invested Capital (14.04%) than 91.67% of its industry peers.
GCT had an Average Return On Invested Capital over the past 3 years of 15.64%. This is above the industry average of 10.92%.
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.
In the last couple of years the Profit Margin of GCT has grown nicely.
Looking at the Operating Margin, with a value of 16.11%, GCT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.

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.

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.