GIGACLOUD TECHNOLOGY INC - A (GCT) Stock Fundamental Analysis
NASDAQ:GCT - Nasdaq - KYG386441037 - Common Stock - Currency: USD
Overall GCT gets a fundamental rating of 7 out of 10. We evaluated GCT against 20 industry peers in the Distributors industry. GCT gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on GCT. This makes GCT very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year GCT was profitable.
GCT had a positive operating cash flow in the past year.
Each year in the past 5 years GCT has been profitable.
In the past 5 years GCT always reported a positive cash flow from operatings.
1.2 Ratios
GCT's Return On Assets of 11.53% is amongst the best of the industry. GCT outperforms 90.00% of its industry peers.
The Return On Equity of GCT (30.46%) is better than 85.00% of its industry peers.
With a decent Return On Invested Capital value of 13.32%, GCT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
GCT had an Average Return On Invested Capital over the past 3 years of 12.84%. This is significantly below the industry average of 18.48%.
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
GCT has a Profit Margin of 10.64%. This is amongst the best in the industry. GCT outperforms 95.00% of its industry peers.
GCT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.52%, GCT belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
GCT's Operating Margin has improved in the last couple of years.
The Gross Margin of GCT (23.90%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GCT has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GCT is creating some value.
Compared to 1 year ago, GCT has less shares outstanding
GCT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GCT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.93 indicates that GCT is not a great score, but indicates only limited risk for bankruptcy at the moment.
GCT has a Altman-Z score of 2.93. This is comparable to the rest of the industry: GCT outperforms 55.00% of its industry peers.
GCT has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.00, GCT belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
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 in the better half of the industry: GCT outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.5
WACC8.86%
2.3 Liquidity
A Current Ratio of 1.98 indicates that GCT should not have too much problems paying its short term obligations.
The Current ratio of GCT (1.98) is better than 65.00% of its industry peers.
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.
GCT has a better Quick ratio (1.28) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
GCT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.34%, which is quite impressive.
GCT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 112.78% yearly.
GCT shows a strong growth in Revenue. In the last year, the Revenue has grown by 42.90%.
The Revenue has been growing by 56.85% on average over the past years. This is a very strong growth!
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
GCT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.21% yearly.
Based on estimates for the next years, GCT will show a small growth in Revenue. The Revenue will grow by 6.30% on average per year.
EPS Next Y-32.71%
EPS Next 2Y-12.21%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.38, which indicates a rather cheap valuation of GCT.
Based on the Price/Earnings ratio, GCT is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.24. GCT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.91 indicates a rather cheap valuation of GCT.
95.00% of the companies in the same industry are more expensive than GCT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.42. GCT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GCT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GCT is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.06 | ||
| EV/EBITDA | 3.88 |
4.3 Compensation for Growth
GCT has an outstanding profitability rating, which may justify a higher PE ratio.
GCT's earnings are expected to decrease with -12.21% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.06
EPS Next 2Y-12.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GCT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22
+1.03 (+4.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners43.74%
Inst Owner ChangeN/A
Ins Owners6.4%
Ins Owner Change17.99%
Market Cap837.54M
Analysts77.14
Price Target36.81 (67.32%)
Short Float %16.03%
Short Ratio6.55
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)0%
PT rev (3m)2.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 7.91 | ||
| P/S | 0.71 | ||
| P/FCF | 6.06 | ||
| P/OCF | 5.5 | ||
| P/B | 2.03 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 3.88 |
EPS(TTM)3.45
EY15.68%
EPS(NY)2.78
Fwd EY12.65%
FCF(TTM)3.63
FCFY16.51%
OCF(TTM)4
OCFY18.17%
SpS31.04
BVpS10.85
TBVpS10.36
PEG (NY)N/A
PEG (5Y)0.06
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 | 2.93 |
F-Score6
WACC8.86%
ROIC/WACC1.5
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-32.71%
EPS Next 2Y-12.21%
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%