GigaCloud Technology, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

GigaCloud Technology, Inc.

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Why is GigaCloud Technology, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 24.68%

Healthy long term growth as Net Sales has grown by an annual rate of 32.84% and Operating profit at 38.57%
The company is Net-Debt Free

Flat results in Mar 26

INTEREST(HY) At USD 0.19 MM has Grown at 273.08%
INTEREST COVERAGE RATIO(Q) Lowest at 37,258.33
DEBTORS TURNOVER RATIO(HY) Lowest at 18.3 times

With ROE of 28.28%, it has a very attractive valuation with a 3.17 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 139.16%, its profits have risen by 9.2% ; the PEG ratio of the company is 0.5

High Institutional Holdings at 87.43%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 6.86% over the previous quarter.

Market Beating performance in long term as well as near term

Along with generating 139.16% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GigaCloud Technology, Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is GigaCloud Technology, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

GigaCloud Technology, Inc.

139.16%

0.79

80.78%

S&P 500

21.51%

1.63

13.19%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

32.84%

EBIT Growth (5y)

38.57%

EBIT to Interest (avg)

78.45

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

2.21

Tax Ratio

10.04%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

87.43%

ROCE (avg)

54.33%

ROE (avg)

24.68%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.17

EV to EBIT

8.44

EV to EBITDA

7.98

EV to Capital Employed

7.22

EV to Sales

0.95

PEG Ratio

0.47

Dividend Yield

ROCE (Latest)

85.51%

ROE (Latest)

28.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 162.13 MM

RAW MATERIAL COST(Y)

Fallen by -1.96% (YoY

OPERATING PROFIT(Q)

Highest at USD 44.71 MM

PRE-TAX PROFIT(Q)

Highest at USD 45.92 MM

-11What is not working for the Company

INTEREST(HY)

At USD 0.19 MM has Grown at 273.08%

INTEREST COVERAGE RATIO(Q)

Lowest at 37,258.33

DEBTORS TURNOVER RATIO(HY)

Lowest at 18.3 times

Here's what is working for GigaCloud Technology, Inc.

Operating Cash Flow

Highest at USD 162.13 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit

Highest at USD 44.71 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 45.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Raw Material Cost

Fallen by -1.96% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 2.23 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for GigaCloud Technology, Inc.

Interest

At USD 0.19 MM has Grown at 273.08%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 37,258.33 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 18.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio