Cirrus Logic, Inc. Fundamental Analysis
Cirrus Logic, Inc. (CRUS) shows moderate financial fundamentals with a PE ratio of 19.36, profit margin of 20.75%, and ROE of 20.21%. The company generates $2.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 99.2/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze CRUS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCRUS demonstrates superior asset utilization.
Valuation Score
ExcellentCRUS trades at attractive valuation levels.
Growth Score
ModerateCRUS shows steady but slowing expansion.
Financial Health Score
ExcellentCRUS maintains a strong and stable balance sheet.
Profitability Score
ExcellentCRUS achieves industry-leading margins.
Key Financial Metrics
Is CRUS Expensive or Cheap?
P/E Ratio
CRUS trades at 19.36 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CRUS's PEG of 0.65 indicates potential undervaluation.
Price to Book
The market values Cirrus Logic, Inc. at 3.77 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.14 times EBITDA. This signals the market has high growth expectations.
How Well Does CRUS Make Money?
Net Profit Margin
For every $100 in sales, Cirrus Logic, Inc. keeps $20.75 as profit after all expenses.
Operating Margin
Core operations generate 23.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.21 in profit for every $100 of shareholder equity.
ROA
Cirrus Logic, Inc. generates $16.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cirrus Logic, Inc. generates strong operating cash flow of $645.87M, reflecting robust business health.
Free Cash Flow
Cirrus Logic, Inc. generates strong free cash flow of $631.99M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.53 in free cash annually.
FCF Yield
CRUS converts 7.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How CRUS Stacks Against Its Sector Peers
| Metric | CRUS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.36 | 42.32 | Better (Cheaper) |
| ROE | 20.21% | 764.00% | Weak |
| Net Margin | 20.75% | 10929058400.00% | Weak |
| Debt/Equity | 0.06 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 7.37 | 5.24 | Strong Liquidity |
| ROA | 16.65% | 103.00% | Weak |
CRUS outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cirrus Logic, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta