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Reasonable Growth, Debt Levels, and a High ROIC Make CIRRUS LOGIC INC (NASDAQ:CRUS) Appealing to Quality Investors.

By Mill Chart

Last update: May 15, 2024

In this article we will dive into CIRRUS LOGIC INC (NASDAQ:CRUS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed CIRRUS LOGIC INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into CIRRUS LOGIC INC's Quality Metrics.

  • Over the past 5 years, CIRRUS LOGIC INC has experienced impressive revenue growth, with 8.58% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • The ROIC excluding cash and goodwill of CIRRUS LOGIC INC stands at 23.75%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • CIRRUS LOGIC INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.0, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • The Profit Quality (5-year) of CIRRUS LOGIC INC stands at 133.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • With a robust 5-year EBIT growth of 29.21%, CIRRUS LOGIC INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, CIRRUS LOGIC INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What is the full fundamental picture of NASDAQ:CRUS telling us.

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

Overall CRUS gets a fundamental rating of 7 out of 10. We evaluated CRUS against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. CRUS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CRUS has a decent growth rate and is not valued too expensively.

Check the latest full fundamental report of CRUS for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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