GCT Semiconductor Holding, Inc. (NYSE: GCTS)

Sector: Technology Industry: Semiconductors CIK: 0001851961
Market Cap 60.27 Mn
P/B -0.75
P/E -1.53
P/S 15.48
ROIC (Qtr) 198.72
Div Yield % 0.00
Rev 1y % (Qtr) -83.52
Total Debt (Qtr) 65.14 Mn
Debt/Equity (Qtr) -0.81

About

GCT Semiconductor Holding, Inc., also known as GCTS, is a technology company that operates in the semiconductor industry. The company generates revenue through the development and sale of semiconductor products and services. Its primary products include semiconductors, which are used in a variety of applications such as consumer electronics, automotive, and industrial control systems. GCTS has a diverse customer base, including technology companies, automotive manufacturers, and industrial equipment manufacturers. The company's semiconductor business...

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Price action

Investment thesis

Bull case

  • Tangible assets of 24.27M provide exceptional 2205.91x coverage of deferred revenue 11000, showing strong service capability backing.
  • R&D investment of 14.30M represents healthy 1300.18x of deferred revenue 11000, indicating strong future innovation pipeline.
  • Retained earnings of (596.39M) represent substantial 7.44x of equity (80.15M), indicating strong internal capital generation.
  • Cash position of 8.34M provides strong 758.45x coverage of deferred revenue 11000, ensuring service delivery capability.
  • Robust R&D investment of 14.30M at 0.85x of SG&A 16.86M demonstrates strong commitment to innovation and future growth.

Bear case

  • Investment activities of (1.50M) provide weak support for R&D spending of 14.30M, which is -0.10x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (25.72M) provides insufficient coverage of deferred revenue obligations of 11000, which is -2338.18x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (25.72M) shows concerning coverage of stock compensation expenses of 3.48M, with a -7.40 ratio indicating potential earnings quality issues.
  • Free cash flow of (27.22M) provides weak coverage of capital expenditures of 1.50M, with a -18.15 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (25.72M) provides minimal -44.34x coverage of tax expenses of 580000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,516.69 Bn 45.53 24.14 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,678.13 Bn 32.54 14.09 31.18 Bn
3 AVGO Broadcom Inc. 1,624.80 Bn 70.26 25.43 65.14 Bn
4 MU Micron Technology Inc 386.61 Bn 32.46 9.14 12.43 Bn
5 AMD Advanced Micro Devices Inc 330.88 Bn 100.08 10.33 3.87 Bn
6 INTC Intel Corp 300.63 Bn 1,518.33 5.63 46.55 Bn
7 QCOM Qualcomm Inc/De 195.07 Bn 35.20 4.40 14.81 Bn
8 TXN Texas Instruments Inc 173.86 Bn 34.48 10.07 14.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.59 4.22
EV to Cash from Ops. EV/CFO -4.33 -369.72
EV to Debt EV to Debt 1.71 90.98
EV to EBIT EV/EBIT -3.28 -66.75
EV to EBITDA EV/EBITDA -3.64 23.41
EV to Free Cash Flow [EV/FCF] EV/FCF -4.09 -8.88
EV to Market Cap EV to Market Cap 1.85 0.80
EV to Revenue EV/Rev 28.62 20.68
Price to Book Value [P/B] P/B -0.75 5.21
Price to Earnings [P/E] P/E -1.53 11.55
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 2.39
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 8.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 9.91
Interest Coverage Int. cover (Qtr) -7.17 8.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -546.55 -155.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 360.43 45.60
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.64
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -175.67 26.23
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -32.13 47.12
EBIT Growth (1y) % EBIT 1y % (Qtr) -181.26 25.83
EBT Growth (1y) % EBT 1y % (Qtr) -128.37 39.93
EPS Growth (1y) % EPS 1y % (Qtr) -32.76 24.64
FCF Growth (1y) % FCF 1y % (Qtr) 8.74 244.42
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -100.13 43.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.16 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 0.10 2.23
Current Ratio Curr Ratio (Qtr) 0.25 5.43
Debt to Equity Ratio Debt/Equity (Qtr) -0.81 0.34
Interest Cover Ratio Int Coverage (Qtr) -7.17 8.38
Times Interest Earned Times Interest Earned (Qtr) -7.17 8.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -838.50 -112.38
EBIT Margin % EBIT Margin % (Qtr) -873.47 -91.98
EBT Margin % EBT Margin % (Qtr) -995.30 -132.25
Gross Margin % Gross Margin % (Qtr) -0.20 47.73
Net Profit Margin % Net Margin % (Qtr) -1,010.20 -133.26