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GigaCloud Technology, Inc. Class A (GCT)
NASDAQ:GCT
RESEARCH TOOLSreports
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GigaCloud Technology, Inc. Class A
(NASDAQ:GCT)
73Outperform
Positive Factors
Financial Health
At 1Q24 end, GCT held $196.2M of cash or 13.4% of its share price and no debt, indicating that operations and growth can be funded without the need to raise capital.
Market Share
The company continues to gain market share in the Home category that was negatively impacted by high interest rates, inflationary pressure, and shifting consumer spending patterns.
Network Effect
GCT benefits from a network effect with 1,111 active sellers, up 36.3% y/y, and 9,306 active buyers, up 85.7%, on its platform.
Negative Factors
Gross Margin
Gross margin pressure weighed on adjusted EBITDA due to an increase in fulfillment costs, elevated procurement expenses, and inventory procured at peak ocean freight rates.
Revenue Guidance
First quarter revenue was guided to $250M-$265M, which was below the $281.4M consensus estimate.
Sales Guidance
Management guided to weaker 1Q25 sales due to challenging market conditions and indicated 2Q25 sales would be lower as a result of planned SKU rationalization efforts.
GigaCloud Technology, Inc. Class A (GCT) vs. S&P 500 (SPY)
Market Cap
$603.40M
Dividend YieldN/A
Average Volume (3M)1.15M
Price to Earnings (P/E)4.9
Beta (1Y)2.04
Revenue Growth64.96%
EPS Growth32.66%
CountryUS
Employees1,362
SectorTechnology
Sector Strength51
IndustrySoftware
Share Statistics
EPS (TTM)3.05
Shares Outstanding31,989,632
10 Day Avg. Volume1,050,260
30 Day Avg. Volume1,153,905
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)N/A
Price to Sales (P/S)0.52
Price to Cash Flow (P/CF)2.20
P/FCF Ratio2.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.50Price Target Upside36.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
GigaCloud Technology, Inc. Class A Business Overview & Revenue Model
Company DescriptionGigaCloud Technology, Inc. is a cutting-edge company operating within the technology sector, specializing in providing innovative cloud computing solutions. The company focuses on developing and delivering scalable, secure, and efficient cloud-based services that cater to a wide range of industries. With a commitment to driving digital transformation, GigaCloud Technology offers an array of products and services, including cloud infrastructure, storage solutions, and integrated software applications designed to enhance operational efficiency and business agility for its clients.
How the Company Makes MoneyGigaCloud Technology, Inc. generates revenue primarily through the sale of its cloud computing services and solutions. The company's key revenue streams include subscription fees for its cloud infrastructure services, which provide businesses with on-demand access to computing resources and storage. Additionally, GigaCloud earns income from licensing its software applications and offering enterprise-level support and consulting services. Partnerships with other tech firms and strategic alliances further bolster its offerings, enabling the company to expand its market reach and enhance its service portfolio. These partnerships often involve co-developing solutions or integrating GigaCloud's technologies with third-party platforms, thus driving mutual growth and innovation.
GigaCloud Technology, Inc. Class A Financial Statement Overview
Summary
GigaCloud Technology, Inc. has shown impressive revenue growth with a significant increase in Total Revenue and strong margins. However, the balance sheet indicates a cautious approach to debt with room for improvement, and the lack of comprehensive 2024 balance sheet data poses a minor limitation.Income Statement
GigaCloud Technology, Inc. has shown impressive revenue growth with Total Revenue increasing significantly over the years, particularly a 65% growth from 2023 to 2024. The Gross Profit Margin in 2024 was approximately 24.6%, demonstrating effective cost management. The Net Profit Margin improved to around 10.8%, indicating strong bottom-line performance. EBIT and EBITDA margins were robust at about 11.2%, reflecting efficient operations.85
Very Positive
Balance Sheet
The balance sheet analysis reveals a cautious approach to debt, with a Debt-to-Equity Ratio of 1.39 in 2023. The company's Return on Equity for 2023 was around 32.4%, showcasing effective use of equity to generate profits. However, the absence of data for 2024 limits further analysis. GCT's Equity Ratio stood at about 34.3% in 2023, indicating a solid capital structure but with room for improvement.60
Neutral
Cash Flow
The cash flow statement highlights strong Free Cash Flow growth, with Free Cash Flow increasing by 10.4% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio was favorable, showing efficient cash generation relative to reported profits. Free Cash Flow to Net Income Ratio was also strong, suggesting sustainable cash flow generation.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.16B | 703.83M | 490.07M | 414.20M | 275.48M | Gross Profit |
| 285.24M | 188.63M | 83.11M | 89.60M | 75.12M | EBIT |
| 130.62M | 113.31M | 35.02M | 39.35M | 44.18M | EBITDA |
| 149.39M | 119.79M | 33.77M | 38.81M | 45.55M | Net Income Common Stockholders |
| 125.81M | 94.11M | 23.97M | 29.26M | 37.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 302.43M | 183.28M | 143.53M | 63.20M | 61.54M | Total Assets |
| 1.07B | 846.91M | 418.60M | 186.78M | 138.34M | Total Debt |
| 484.28M | 403.24M | 145.29M | 5.27M | 4.03M | Net Debt |
| 224.52M | 219.95M | 1.76M | -57.93M | -57.51M | Total Liabilities |
| 665.26M | 556.49M | 223.44M | 60.95M | 51.57M | Stockholders Equity |
| 405.22M | 290.42M | 195.16M | 125.83M | 86.77M |
| Cash Flow | Free Cash Flow | |||
| 142.54M | 129.07M | 48.95M | 6.73M | 32.63M | Operating Cash Flow |
| 158.08M | 133.45M | 49.66M | 8.56M | 33.28M | Investing Cash Flow |
| -55.42M | -90.55M | -709.00K | -1.82M | -647.00K | Financing Cash Flow |
| -24.97M | -4.00M | 31.89M | -2.96M | 23.27M |
GigaCloud Technology, Inc. Class A Technical Analysis
Negative
15.06
Price Trends
18.43
Negative
20.25
Negative
22.85
Negative
Market Momentum
-1.16
Negative
38.00
Neutral
43.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCT, the sentiment is Negative. The current price of 15.06 is below the 20-day moving average (MA) of 15.83, below the 50-day MA of 18.43, and below the 200-day MA of 22.85, indicating a bearish trend. The MACD of -1.16 indicates Negative momentum. The RSI at 38.00 is Neutral, neither overbought nor oversold. The STOCH value of 43.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GCT.
GigaCloud Technology, Inc. Class A Risk Analysis
GigaCloud Technology, Inc. Class A disclosed 84 risk factors in its most recent earnings report. GigaCloud Technology, Inc. Class A reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GigaCloud Technology, Inc. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $319.50B | 19.00 | 11.97% | 0.72% | 4.28% | 28.42% | |
78 Outperform | $66.64B | 11.30 | 17.55% | 1.75% | 5.20% | 77.60% | |
73 Outperform | $603.40M | 4.93 | 36.17% | ― | 64.96% | 32.66% | |
73 Outperform | $30.65B | 16.69 | 34.29% | 1.64% | 2.79% | -23.30% | |
72 Outperform | C$193.64B | 69.29 | 19.58% | ― | 27.85% | 1400.97% | |
58 Neutral | $21.97B | 10.49 | -18.75% | 2.40% | 4.80% | -25.17% | |
54 Neutral | $187.36M | ― | -4.63% | ― | 4.96% | 55.95% |
* Technology Sector Average
Performance Comparison
GCT
GigaCloud Technology, Inc. Class A
15.06
-12.65
-45.65%
EBAY
eBay
65.78
15.49
30.80%
JD
JD
42.24
16.17
62.03%
BABA
Alibaba
135.14
65.18
93.17%
BZUN
Baozun
3.00
0.71
31.00%
TSE:SHOP
Shopify
149.55
43.07
40.45%
GigaCloud Technology, Inc. Class A Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -5.93% | Next Earnings Date: May 21, 2025
Earnings Call Sentiment Neutral
The earnings call highlights significant achievements in revenue growth, market expansion, and successful integration of acquisitions, emphasizing strong financial health and strategic positioning. However, these positives are tempered by macroeconomic challenges affecting the industry, declining product margins, and expected temporary revenue softening due to strategic SKU retirement.Highlights
Record Revenue and Market Growth
GigaCloud surpassed $1 billion in total revenue for 2024, marking a 65% increase from 2023 levels. Marketplace GMV grew almost 70% to $1.3 billion.
Significant Expansion in Europe
GMV from Europe grew over 150% organically year-over-year, with a new fulfillment center opened in Germany to support this growth.
Successful Noble House Integration
Noble House was successfully integrated, reaching breakeven by the end of 2024, reversing its previous $35 million annual net losses.
Leadership Recognition and Industry Accolades
GigaCloud secured the number one spot on Forbes America's Most Successful Small Cap Company's 2025 list and was added to the Russell 2000 Index.
Strong Financial Position
The company has zero debt and strong cash flow generation, with liquidity of approximately $303 million, up 65% from 2023.
Lowlights
Macroeconomic and Industry Challenges
The furniture industry faced softening demand due to high interest rates and persistent inflation, with new orders declining 9% year-over-year as of November.
Decline in Product Margins
Product margins declined due to elevated ground delivery fees, increased procurement costs, and channel-specific softness from major e-commerce partners.
Temporary Revenue Softening Expected
A contraction in revenue is expected in Q2 2025 due to the planned retirement of less profitable SKUs from Noble House.
Average Buyer Spend Decline
Average buyer spend declined slightly compared to last year, attributed to onboarding a large number of buyers with lower trading volumes.
Company Guidance
In the GigaCloud Technologies earnings call for the fourth quarter and full year 2024, the company provided several key metrics that demonstrate its growth and strategic direction. GigaCloud surpassed $1 billion in total revenue for the year, with a marketplace GMV increase of nearly 70%, reaching $1.3 billion. The number of active 3P sellers grew to over 1,100, and active buyers increased to more than 9,300. The company also highlighted a 21% year-over-year growth in fourth-quarter revenue, totaling $296 million, and full-year revenues of $1.1 billion, up 65% from 2023. Service revenues for the fourth quarter increased 40% year-over-year to $97 million, while full-year service revenues rose 76% to $350 million. GigaCloud’s product revenue for the year increased by 61% to $811 million, despite challenges such as high interest rates and softening consumer demand. Their balance sheet remains robust, with zero debt and liquidity of approximately $303 million, up 65% from the previous year. The company also announced a $46 million share repurchase program, with $29 million already executed. Additionally, GigaCloud was recognized as the number one spot on Forbes America’s Most Successful Small Cap Company’s 2025 list and was added to the Russell 2000 Index.GigaCloud Technology, Inc. Class A Corporate Events
Executive/Board ChangesStock BuybackBusiness Operations and StrategyFinancial Disclosures
GigaCloud Technology Appoints New Chief Financial Officer
Positive
Mar 3, 2025
On February 26, 2025, GigaCloud Technology Inc appointed Ms. Xiaoyang Wei as Chief Financial Officer, following her interim role since August 2024. The company reported record revenues surpassing $1 billion in 2024, with significant growth in its GigaCloud Marketplace GMV. Despite a challenging macroeconomic environment, GigaCloud achieved a 65% increase in total revenues year-over-year, driven by its Supplier Fulfilled Retail model and global expansion, particularly in Europe. The company also executed a share repurchase program, enhancing shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.