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Should you consider NASDAQ:CRUS for quality investing?

By Mill Chart

Last update: Jun 6, 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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A Deep Dive into CIRRUS LOGIC INC's Quality Metrics.

  • CIRRUS LOGIC INC has achieved substantial revenue growth over the past 5 years, with a 8.58% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • CIRRUS LOGIC INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 23.75% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • CIRRUS LOGIC INC maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • CIRRUS LOGIC INC demonstrates consistent Profit Quality over the past 5 years, with a strong 133.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • The 5-year EBIT growth of CIRRUS LOGIC INC has been remarkable, with 29.21% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • 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.

Fundamental Analysis Observations

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.

CRUS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 correct valuation and a medium growth rate.

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

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

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.

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