GIGACLOUD TECHNOLOGY INC - A (GCT) Stock Fundamental Analysis
NASDAQ:GCT - Nasdaq - KYG386441037 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to GCT. GCT was compared to 17 industry peers in the Distributors industry. GCT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GCT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make GCT suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
GCT had positive earnings in the past year.
GCT had a positive operating cash flow in the past year.
In the past 5 years GCT has always been profitable.
In the past 5 years GCT always reported a positive cash flow from operatings.
1.2 Ratios
GCT has a Return On Assets of 11.53%. This is amongst the best in the industry. GCT outperforms 88.24% of its industry peers.
GCT's Return On Equity of 30.46% is amongst the best of the industry. GCT outperforms 82.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.32%, GCT is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GCT is significantly below the industry average of 20.31%.
The last Return On Invested Capital (13.32%) for GCT is above the 3 year average (12.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 30.46% | ||
| ROIC | 13.32% |
ROA(3y)8.79%
ROA(5y)8.12%
ROE(3y)23.66%
ROE(5y)18.62%
ROIC(3y)12.84%
ROIC(5y)21.37%
1.3 Margins
The Profit Margin of GCT (10.64%) is better than 94.12% of its industry peers.
In the last couple of years the Profit Margin of GCT has grown nicely.
GCT's Operating Margin of 10.52% is amongst the best of the industry. GCT outperforms 82.35% of its industry peers.
In the last couple of years the Operating Margin of GCT has grown nicely.
GCT's Gross Margin of 23.90% is in line compared to the rest of the industry. GCT outperforms 52.94% of its industry peers.
GCT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.52% | ||
| PM (TTM) | 10.64% | ||
| GM | 23.9% |
OM growth 3Y5.81%
OM growth 5Y23.48%
PM growth 3Y70.85%
PM growth 5Y35.51%
GM growth 3Y4.33%
GM growth 5Y6.24%
2. Health
2.1 Basic Checks
GCT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for GCT has been reduced compared to 1 year ago.
Compared to 5 years ago, GCT has more shares outstanding
GCT has a better debt/assets ratio than last year.
2.2 Solvency
GCT has an Altman-Z score of 2.82. This is not the best score and indicates that GCT is in the grey zone with still only limited risk for bankruptcy at the moment.
GCT's Altman-Z score of 2.82 is in line compared to the rest of the industry. GCT outperforms 47.06% of its industry peers.
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 88.24% 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 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.43
WACC9.34%
2.3 Liquidity
GCT has a Current Ratio of 1.98. This is a normal value and indicates that GCT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GCT (1.98) is comparable to the rest of the industry.
GCT has a Quick Ratio of 1.28. This is a normal value and indicates that GCT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.28, GCT perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
The current and quick ratio evaluation for GCT is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.34% over the past year.
The Earnings Per Share has been growing by 112.78% on average over the past years. This is a very strong growth
The Revenue has grown by 42.90% in the past year. This is a very strong growth!
GCT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 56.85% yearly.
EPS 1Y (TTM)22.34%
EPS 3Y140.32%
EPS 5Y112.78%
EPS Q2Q%-19.05%
Revenue 1Y (TTM)42.9%
Revenue growth 3Y41%
Revenue growth 5Y56.85%
Sales Q2Q%8.3%
3.2 Future
Based on estimates for the next years, GCT will show a decrease in Earnings Per Share. The EPS will decrease by -6.02% on average per year.
GCT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.30% yearly.
EPS Next Y-23.43%
EPS Next 2Y-6.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.09%
Revenue Next 2Y6.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GCT is valuated cheaply with a Price/Earnings ratio of 5.43.
GCT's Price/Earnings ratio is rather cheap when compared to the industry. GCT is cheaper than 94.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of GCT to the average of the S&P500 Index (26.55), we can say GCT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.88, 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 (22.40), we can say GCT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.43 | ||
| Fwd PE | 5.88 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than GCT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GCT is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.16 | ||
| EV/EBITDA | 2.91 |
4.3 Compensation for Growth
GCT has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as GCT's earnings are expected to decrease with -6.02% in the coming years.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-6.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for GCT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.74
+0.14 (+0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners42.35%
Inst Owner ChangeN/A
Ins Owners7.24%
Ins Owner Change17.99%
Market Cap713.43M
Analysts77.14
Price Target36.81 (96.42%)
Short Float %20.82%
Short Ratio5.96
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)1
Avg EPS beat(2)11.38%
Min EPS beat(2)-6.72%
Max EPS beat(2)29.47%
EPS beat(4)3
Avg EPS beat(4)27.62%
Min EPS beat(4)-6.72%
Max EPS beat(4)44.1%
EPS beat(8)7
Avg EPS beat(8)34.77%
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)2.59%
Min Revenue beat(2)1.57%
Max Revenue beat(2)3.62%
Revenue beat(4)4
Avg Revenue beat(4)6.01%
Min Revenue beat(4)1.57%
Max Revenue beat(4)11.42%
Revenue beat(8)8
Avg Revenue beat(8)6.18%
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)2.48%
PT rev (3m)-28.63%
EPS NQ rev (1m)-10.21%
EPS NQ rev (3m)-24.43%
EPS NY rev (1m)-1.44%
EPS NY rev (3m)-21.36%
Revenue NQ rev (1m)-4.33%
Revenue NQ rev (3m)-15.81%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-3.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.43 | ||
| Fwd PE | 5.88 | ||
| P/S | 0.6 | ||
| P/FCF | 5.16 | ||
| P/OCF | 4.69 | ||
| P/B | 1.73 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 2.91 |
EPS(TTM)3.45
EY18.41%
EPS(NY)3.19
Fwd EY17.01%
FCF(TTM)3.63
FCFY19.38%
OCF(TTM)4
OCFY21.33%
SpS31.04
BVpS10.85
TBVpS10.36
PEG (NY)N/A
PEG (5Y)0.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 30.46% | ||
| ROCE | 15.56% | ||
| ROIC | 13.32% | ||
| ROICexc | 20.78% | ||
| ROICexgc | 21.56% | ||
| OM | 10.52% | ||
| PM (TTM) | 10.64% | ||
| GM | 23.9% | ||
| FCFM | 11.7% |
ROA(3y)8.79%
ROA(5y)8.12%
ROE(3y)23.66%
ROE(5y)18.62%
ROIC(3y)12.84%
ROIC(5y)21.37%
ROICexc(3y)20.27%
ROICexc(5y)49.44%
ROICexgc(3y)20.9%
ROICexgc(5y)49.81%
ROCE(3y)14.99%
ROCE(5y)24.95%
ROICexcg growth 3Y-23.03%
ROICexcg growth 5Y4.15%
ROICexc growth 3Y-24%
ROICexc growth 5Y3.36%
OM growth 3Y5.81%
OM growth 5Y23.48%
PM growth 3Y70.85%
PM growth 5Y35.51%
GM growth 3Y4.33%
GM growth 5Y6.24%
F-Score6
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 164.13% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.59% | ||
| Profit Quality | 109.94% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 2.82 |
F-Score6
WACC9.34%
ROIC/WACC1.43
Cap/Depr(3y)128.6%
Cap/Depr(5y)180.6%
Cap/Sales(3y)0.7%
Cap/Sales(5y)0.56%
Profit Quality(3y)194.48%
Profit Quality(5y)181.85%
High Growth Momentum
Growth
EPS 1Y (TTM)22.34%
EPS 3Y140.32%
EPS 5Y112.78%
EPS Q2Q%-19.05%
EPS Next Y-23.43%
EPS Next 2Y-6.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)42.9%
Revenue growth 3Y41%
Revenue growth 5Y56.85%
Sales Q2Q%8.3%
Revenue Next Year6.09%
Revenue Next 2Y6.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.57%
EBIT growth 3Y49.18%
EBIT growth 5Y93.68%
EBIT Next Year-4.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y65.09%
FCF growth 3Y176.68%
FCF growth 5Y265.01%
OCF growth 1Y80.08%
OCF growth 3Y164.32%
OCF growth 5Y167.23%