GigaCloud Technology, Inc. Class A (GCT) AI Stock Analysis

• Market Cap: $614.56M
• Dividend Yield: N/A
• Average Volume (3M): 960.36K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 1.37
• Revenue Growth: 42.89%
• EPS Growth: 18.97%
• Country: US
• Employees: 1,561
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Infrastructure
• EPS (TTM): 0.68
• Shares Outstanding: 29,991,730
• 10 Day Avg. Volume: 935,815
• 30 Day Avg. Volume: 960,359
• PEG Ratio: -1.36
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.87
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 2.72
• Enterprise Value/Ebitda: 1.32
• 1Y Price Target: $29.50
• Price Target Upside: 57.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

GigaCloud Technology, Inc. maintains a strong financial performance with impressive revenue growth and effective cost management. The technical indicators suggest caution due to overbought conditions. Valuation metrics point towards potential undervaluation, making it attractive in the software infrastructure sector. Despite some domestic challenges, the company's strategic initiatives and international expansion efforts are promising. Recent corporate actions further enhance the company's potential for long-term growth.

Positive Factors

Financial Health

The company remains debt-free and is believed to be able to fund operations and growth without raising external capital.

International Business

GigaCloud's international business saw favorable momentum with GMV in Europe growing more than 80% year-over-year.

Market Position

Analyst remains bullish due to GCT's strong balance sheet and ability to take market share from its positioning as a low-cost provider.

Negative Factors

Gross Margin Pressure

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 Decline

U.S. products revenue declined 17% year-over-year due to SKU rationalization efforts and softness in certain downstream channels.

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 Business Overview & Revenue Model

Company Description

GigaCloud 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 Money

GigaCloud 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. shows impressive revenue and profit growth with a strong income statement. However, the balance sheet displays cautious debt management and room for improvement in equity ratio. Cash flow is strong, indicating efficient operations and sustainable cash generation. Overall, the financial performance is solid, but the lack of comprehensive 2024 balance sheet data is 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.

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.

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.

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
149.83M	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

• Technical Analysis Sentiment: Positive
• Last Price: 18.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCT, the sentiment is Positive. The current price of 18.75 is above the 20-day moving average (MA) of 14.15, above the 50-day MA of 14.17, and below the 200-day MA of 19.74, indicating a neutral trend. The MACD of 0.97 indicates Negative momentum. The RSI at 70.67 is Negative, neither overbought nor oversold. The STOCH value of 90.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GCT.

GigaCloud Technology, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CINT	80 Outperform	$836.38M	27.79	11.18%	―	2.07%	22.81%
GCT	73 Outperform	$614.56M	6.10	34.42%	―	42.89%	18.97%
CCSI	62 Neutral	$446.71M	5.41	-94.58%	―	-2.75%	-4.13%
RPAY	61 Neutral	$396.00M	―	-1.64%	―	2.26%	85.37%
Sector *	60 Neutral	$11.64B	10.63	-6.94%	2.93%	7.63%	-11.15%
PRTH	58 Neutral	$604.53M	―	57.39%	―	15.76%	82.78%

GigaCloud Technology, Inc. Class A Corporate Events

GigaCloud Expands Share Buyback Program by $16 Million

On May 8, 2025, GigaCloud Technology Inc’s Board of Directors approved an additional $16 million for its Class A ordinary share repurchase program, increasing the total authorization to $78 million. As of May 12, 2025, the company has repurchased approximately 3.7 million shares for $61.8 million. The company also reported financial results for the first quarter ended March 31, 2025, with total revenues of $271.9 million, an 8.3% increase year-over-year, and a gross profit of $63.7 million, a 4.2% decrease from the previous year. The GigaCloud Marketplace saw significant growth, with GMV increasing by 56.1% year-over-year, highlighting the strength of its Supplier Fulfilled Retailing model despite industry challenges.

The most recent analyst rating on (GCT) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on GigaCloud Technology, Inc. Class A stock, see the GCT Stock Forecast page.

Spark’s Take on GCT Stock

According to Spark, TipRanks’ AI Analyst, GCT is a Outperform.

GigaCloud Technology, Inc.’s stock score is supported by its strong financial performance and attractive valuation. Despite bearish technical indicators, the company’s robust revenue growth, market expansion, and strategic initiatives were positively highlighted in the earnings call. However, macroeconomic challenges and a cautious balance sheet suggest potential risks, slightly tempering the overall outlook.

To see Spark’s full report on GCT stock, click here.

GigaCloud Technology Appoints New Chief Financial Officer

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.