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.
Looking into the quality metrics of CIRRUS LOGIC INC
The 5-year revenue growth of CIRRUS LOGIC INC has been remarkable, with 8.58% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
With a robust ROIC excluding cash and goodwill at 23.75%, CIRRUS LOGIC INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
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.
CIRRUS LOGIC INC exhibits impressive Profit Quality (5-year) with a 133.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
CIRRUS LOGIC INC has consistently achieved strong EBIT growth over the past 5 years, with a 29.21% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
The EBIT 5-year growth of CIRRUS LOGIC INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.
Fundamental analysis of NASDAQ:CRUS
At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.
Overall CRUS gets a fundamental rating of 6 out of 10. We evaluated CRUS against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making CRUS a very profitable company, without any liquidiy or solvency issues. CRUS has a decent growth rate and is not valued too expensively.
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.