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GSIT is now undervalued and could go up 355%

Aug 24, 2024, 12:00 PM
7.95%
What does GSIT do
GSI Technology, Inc., headquartered in Sunnyvale, California, specializes in designing and marketing memory products like SRAM for networking, telecommunications, and high-performance sectors including AI and HPC. The company, which went public in 2007, also develops associative processing units for applications such as visual search queries in ecommerce and cybersecurity.
Based on our analysis, GSI Technology Inc. has received an undervalued rating of 4 out of 5 stars from Cashu, largely due to its financial ratios that suggest potential for improvement and growth. The company has a Price-to-Book (PB) ratio of 2.40, significantly lower than the sector average of 3.12. This indicates that GSI Technology’s stock may be undervalued relative to its book value, suggesting that investors could be paying less for each dollar of net assets compared to its peers. Additionally, GSI Technology's net profit margin stands at -92.29, compared to the sector's -18.82. While negative margins indicate that the company is currently unprofitable, the significant disparity may suggest that GSI Technology is facing unique challenges that could be addressed, positioning them for improved profitability in the future. The Return on Equity (ROE) ratio of -55.84 is also concerning, as it is well below the sector average of -25.46. This negative figure points to inefficiencies in generating profit from shareholder equity. However, in a recovering market, operational improvements could enhance this ratio. Finally, the Return on Assets (ROA) ratio of -47.30, again weaker than the sector average of -13.45, suggests that the company is not effectively utilizing its assets to generate earnings. This presents an opportunity for potential investors to watch for improvements in asset management. In summary, these financial ratios reflect a company that, while currently facing challenges, may be undervalued relative to its potential for recovery and growth. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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