GigaCloud Technology Inc.
GigaCloud Technology Inc. Fundamental Analysis
GigaCloud Technology Inc. (GCT) shows strong financial fundamentals with a PE ratio of 8.94, profit margin of 10.77%, and ROE of 31.48%. The company generates $1.4B in annual revenue with strong year-over-year growth of 11.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GCT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGCT demonstrates superior asset utilization.
Valuation Score
ExcellentGCT trades at attractive valuation levels.
Growth Score
ExcellentGCT delivers strong and consistent growth momentum.
Financial Health Score
ExcellentGCT maintains a strong and stable balance sheet.
Profitability Score
ModerateGCT maintains healthy but balanced margins.
Key Financial Metrics
Is GCT Expensive or Cheap?
P/E Ratio
GCT trades at 8.94 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GCT's PEG of 0.31 indicates potential undervaluation.
Price to Book
The market values GigaCloud Technology Inc. at 2.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.56 times EBITDA. This is generally considered low.
How Well Does GCT Make Money?
Net Profit Margin
For every $100 in sales, GigaCloud Technology Inc. keeps $10.77 as profit after all expenses.
Operating Margin
Core operations generate 11.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.48 in profit for every $100 of shareholder equity.
ROA
GigaCloud Technology Inc. generates $12.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GigaCloud Technology Inc. produces operating cash flow of $162.28M, showing steady but balanced cash generation.
Free Cash Flow
GigaCloud Technology Inc. generates strong free cash flow of $152.16M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.08 in free cash annually.
FCF Yield
GCT converts 11.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How GCT Stacks Against Its Sector Peers
| Metric | GCT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.94 | 36.81 | Better (Cheaper) |
| ROE | 31.48% | 974.00% | Weak |
| Net Margin | 10.77% | 5914823191.00% | Weak |
| Debt/Equity | 0.93 | 0.34 | Weak (High Leverage) |
| Current Ratio | 2.07 | 4.93 | Strong Liquidity |
| ROA | 12.06% | -294975.00% (disorted) | Strong |
GCT outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GigaCloud Technology Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
16.52%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-8.73%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
42.55%
Industry Style: Growth, Innovation, High Beta
High Growth