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 19 industry peers in the Distributors industry. Both the health and profitability get an excellent rating, making GCT a very profitable company, without any liquidiy or solvency issues. GCT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, GCT could be worth investigating further 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.
Each year in the past 5 years GCT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.53%, GCT belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
GCT's Return On Equity of 30.46% is amongst the best of the industry. GCT outperforms 84.21% of its industry peers.
The Return On Invested Capital of GCT (13.32%) is better than 78.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GCT is significantly below the industry average of 18.59%.
The 3 year average ROIC (12.84%) for GCT is below the current ROIC(13.32%), indicating increased profibility in the last year.
| 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 94.74% of its industry peers.
In the last couple of years the Profit Margin of GCT has grown nicely.
Looking at the Operating Margin, with a value of 10.52%, GCT belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
In the last couple of years the Operating Margin of GCT has grown nicely.
GCT has a Gross Margin (23.90%) which is in line with 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GCT is still creating some value.
GCT has less shares outstanding than it did 1 year ago.
GCT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GCT has an improved debt to assets ratio.
2.2 Solvency
GCT has an Altman-Z score of 2.91. 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 has a Altman-Z score (2.91) which is in line with 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.
GCT has a better Debt to FCF ratio (0.00) than 89.47% 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 better Debt to Equity ratio (0.00) than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.91 |
ROIC/WACC1.41
WACC9.45%
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.
GCT has a Current ratio (1.98) which is in line with its industry peers.
A Quick Ratio of 1.28 indicates that GCT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.28, GCT perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
GCT does not score too well on the current and quick ratio evaluation. However, as it has 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.
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%.
Measured over the past years, GCT shows a very strong growth in Revenue. The Revenue has been growing by 56.85% on average per year.
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.
The Revenue is expected to grow by 6.30% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 6.02, the valuation of GCT can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of GCT indicates a rather cheap valuation: GCT is cheaper than 94.74% of the companies listed in the same industry.
GCT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 7.46, 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 (21.76), we can say GCT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.02 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GCT indicates a rather cheap valuation: GCT is cheaper than 100.00% of the companies listed in the same industry.
89.47% of the companies in the same industry are more expensive than GCT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.72 | ||
| EV/EBITDA | 3.66 |
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)0.05
EPS Next 2Y-12.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for GCT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.76
-0.47 (-2.21%)
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 Cap790.33M
Analysts77.14
Price Target36.81 (77.31%)
Short Float %15.89%
Short Ratio5.56
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)-3.43%
EPS NQ rev (1m)-25.45%
EPS NQ rev (3m)-33.06%
EPS NY rev (1m)-12.12%
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 | 6.02 | ||
| Fwd PE | 7.46 | ||
| P/S | 0.67 | ||
| P/FCF | 5.72 | ||
| P/OCF | 5.19 | ||
| P/B | 1.91 | ||
| P/tB | 2 | ||
| EV/EBITDA | 3.66 |
EPS(TTM)3.45
EY16.62%
EPS(NY)2.78
Fwd EY13.4%
FCF(TTM)3.63
FCFY17.49%
OCF(TTM)4
OCFY19.26%
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 | 2.91 |
F-Score6
WACC9.45%
ROIC/WACC1.41
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%