Should Quality Investors Include CIRRUS LOGIC INC (NASDAQ:CRUS) in Their Portfolio?

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.

Looking into the quality metrics of CIRRUS LOGIC INC

• CIRRUS LOGIC INC has shown strong performance in revenue growth over the past 5 years, with a 8.58% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a notable ROIC excluding cash and goodwill at 24.18%, CIRRUS LOGIC INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a Debt/Free Cash Flow Ratio of 0.0, CIRRUS LOGIC INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• 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 experienced impressive EBIT growth over the past 5 years, with 29.21% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• CIRRUS LOGIC INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

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

We assign a fundamental rating of 7 out of 10 to CRUS. CRUS was compared to 107 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. 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 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.