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Is NASDAQ:CRUS a Suitable Choice for Quality Investing?

By Mill Chart

Last update: Sep 10, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CIRRUS LOGIC INC (NASDAQ:CRUS) is suited for quality investing. Investors should of course do their own research, but we spotted CIRRUS LOGIC INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.


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What matters for quality investors.

  • CIRRUS LOGIC INC has demonstrated significant revenue growth over the past 5 years, with a 8.58% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • 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 favorable Profit Quality (5-year) ratio of 133.0%, CIRRUS LOGIC INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • 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.
  • 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.

A complete fundamental analysis of NASDAQ:CRUS

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Taking everything into account, CRUS scores 7 out of 10 in our fundamental rating. CRUS was compared to 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 is not valued too expensively and it also shows a decent growth rate. 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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice. 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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