Cirrus Logic, headquartered in Austin, Texas, develops mixed-signal processing solutions and employs 1,625 people. Its products include audio components and high-performance mixed-signal solutions for various applications, enhancing user experiences.
Based on our analysis, Cirrus Logic has received an undervalued rating of 4 out of 5 stars from Cashu. Several key financial ratios indicate that Cirrus Logic is positioned favorably compared to its sector peers.
The company's Price-to-Earnings (PE) ratio stands at 17.82, significantly lower than the sector average of 23.16. A lower PE ratio suggests that the stock may be undervalued relative to its earnings, making it an attractive investment opportunity.
Additionally, Cirrus Logic's Price-to-Book (PB) ratio of 2.75 also compares favorably against the sector average of 3.48. This ratio indicates that the stock is trading below its book value, which can be a sign of undervaluation.
Cirrus Logic boasts a net profit margin of 15.35, a stark contrast to the sector's negative margin of -15.27. This positive margin reflects the company's efficiency in converting revenue into actual profit, highlighting its operational strength.
The company's Return on Equity (ROE) ratio of 15.11 outpaces the sector's -23.19, showcasing effective management in generating returns for shareholders. Furthermore, a Return on Assets (ROA) ratio of 12.30, compared to the sector's -12.89, indicates that Cirrus Logic is utilizing its assets more efficiently to produce earnings.
These financial indicators collectively suggest that Cirrus Logic is undervalued relative to its industry, presenting a compelling case for investors.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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