Exploring CIRRUS LOGIC INC (NASDAQ:CRUS)s quality characteristics.

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.
• The ROIC excluding cash and goodwill of CIRRUS LOGIC INC stands at 25.02%, 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.
• With a favorable Debt/Free Cash Flow Ratio of 0.0, CIRRUS LOGIC INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a robust Profit Quality (5-year) ratio of 133.0%, CIRRUS LOGIC INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• CIRRUS LOGIC INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 29.21%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

CRUS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. CRUS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CRUS has a decent growth rate and is not valued too expensively. These ratings would make CRUS suitable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of CRUS

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.