GCT Semiconductor Holding (GCTS) AI Stock Analysis

• Market Cap: $70.94M
• Dividend Yield: N/A
• Average Volume (3M): 215.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: 28.31%
• EPS Growth: -239.16%
• Country: US
• Employees: 121
• Sector: Financial
• Sector Strength: 77
• Industry: Semiconductors
• EPS (TTM): -0.26
• Shares Outstanding: 55,859,905
• 10 Day Avg. Volume: 213,899
• 30 Day Avg. Volume: 215,888
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 21.11
• Enterprise Value/Gross Profit: 48.04
• Enterprise Value/Ebitda: -4.71
• 1Y Price Target: $3.00
• Price Target Upside: 127.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 44 Neutral
• Price Target: $1.50 ▲(13.64% Upside)

GCT Semiconductor Holding's overall stock score is primarily impacted by its poor financial performance, with significant challenges in revenue, profitability, and liquidity. While technical analysis and valuation metrics are also weak, the company's strategic progress in 5G initiatives and partnerships provides some optimism for future growth. However, current financial instability and negative valuation metrics remain major concerns.

GCT Semiconductor Holding Business Overview & Revenue Model

Company Description

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.

How the Company Makes Money

GCT Semiconductor generates revenue through the sale of its semiconductor products, which are supplied to original equipment manufacturers (OEMs) and other technology companies. The company’s revenue model is primarily based on direct sales of its integrated circuits, often through long-term contracts with key clients in the telecommunications and automotive industries. Additionally, GCTS may engage in licensing agreements for its proprietary technologies, which provides another revenue stream. Strategic partnerships with major players in the semiconductor and electronics sectors further enhance its market reach and contribute to its earnings by facilitating access to broader distribution channels and collaborative product development initiatives.

GCT Semiconductor Holding Financial Statement Overview

Summary

GCT Semiconductor Holding is experiencing severe financial difficulties. The income statement shows declining revenues and profitability, the balance sheet reflects financial instability with negative equity, and cash flow statements indicate liquidity challenges. These issues are critical and need urgent attention to stabilize the company's financial health.

Income Statement

The income statement reveals significant challenges for GCT Semiconductor Holding. The company is experiencing declining revenues, with a negative revenue growth rate of -4.5% TTM. Profitability metrics are concerning, with negative net profit margins and EBIT margins, indicating operational inefficiencies and potential cost management issues. The gross profit margin has decreased from 55.6% in 2024 to 43.9% TTM, further highlighting profitability pressures.

Balance Sheet

The balance sheet shows a precarious financial position. The company has negative stockholders' equity, which is a significant red flag, and a negative debt-to-equity ratio, indicating financial instability. The return on equity is positive but misleading due to negative equity. The equity ratio is also negative, reflecting a high-risk financial structure.

Cash Flow

Cash flow analysis indicates severe liquidity issues. Operating cash flow and free cash flow are both negative, with a slight improvement in free cash flow to net income ratio, suggesting some efficiency in cash management. However, the negative free cash flow growth rate and operating cash flow coverage ratio highlight ongoing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.07M	9.13M	16.03M	16.67M	25.52M
Gross Profit	2.67M	5.08M	6.73M	5.05M	8.16M
EBITDA	-27.23M	-6.74M	-13.89M	-21.97M	-17.28M
Net Income	-32.60M	-12.38M	-22.47M	24.26M	9.17M
Balance Sheet
Total Assets	17.62M	19.90M	16.43M	357.04M	353.86M
Cash, Cash Equivalents and Short-Term Investments	1.27M	1.44M	258.00K	1.40M	1.25M
Total Debt	52.41M	43.45M	80.07M	70.34M	85.51M
Total Liabilities	87.59M	79.21M	131.87M	15.46M	36.53M
Stockholders Equity	-69.98M	-59.31M	-115.44M	341.58M	-106.00M
Cash Flow
Free Cash Flow	-24.10M	-31.50M	-9.16M	-2.43M	-1.49M
Operating Cash Flow	-23.48M	-30.96M	-8.83M	-1.52M	-857.60K
Investing Cash Flow	-620.00K	-542.00K	-331.00K	-903.00K	-637.00K
Financing Cash Flow	24.74M	36.47M	8.15M	19.27M	10.57M

GCT Semiconductor Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCTS, the sentiment is Positive. The current price of 1.32 is above the 20-day moving average (MA) of 1.29, below the 50-day MA of 1.38, and below the 200-day MA of 1.76, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 52.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GCTS.

GCT Semiconductor Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
INTT	68 Neutral	$88.84M	25.19	-0.82%	―	-0.81%	-117.62%
ASYS	57 Neutral	$91.75M	40.38	-47.86%	―	-20.20%	-58.57%
AXTI	55 Neutral	$136.53M	―	-12.56%	―	-2.63%	-78.66%
GSIT	51 Neutral	$85.24M	―	-36.97%	―	6.14%	1.71%
GCTS	44 Neutral	$70.94M	―	17.45%	―	28.31%	-239.16%
NA	42 Neutral	$119.04M	―	-21.44%	―	―	―

GCT Semiconductor Holding Corporate Events

GCT Semiconductor Advances 5G Initiative with Orbic Deal

GCT Semiconductor Holding, Inc. announced plans to hold its 2025 Annual Meeting of Stockholders on September 18, 2025, with a record date of July 25, 2025. Due to the absence of an annual meeting in 2024, the company provided deadlines for stockholder proposals for the 2025 meeting. Additionally, GCT reported its first quarter 2025 financial results, highlighting a significant decrease in net revenues and gross margin compared to the previous year. The company is advancing its ‘2025GCT – Year of 5G’ initiative, with 5G chipset sampling expected to begin at the end of May 2025. GCT has signed a letter of intent with Orbic North America for the development of a 5G module and plans to attend the B. Riley Securities 25th Annual Investor Conference. The company anticipates the 5G transition to positively impact revenue and gross margin in the latter half of the year.