Cirrus stock1/5/2024 The company has two operational segments, Semiconductor Solutions, and Infrastructure Software. Follow him on Twitter Download the Yahoo Finance app, available for Apple and Android.AVGO designs, develops, and supplies various semiconductor devices, emphasizing complex digital and mixed-signal complementary metal oxide semiconductor-based devices and analog III-V-based products worldwide. Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Got a question for Kevin Krausert? Email and let him know what interests you in the world of clean energy and technology. He also weighs in on EV week in Canada, which has seen politicians make funding announcements for charging infrastructure from B.C. But by and large, there is a lot of confidence in the energy industry.” In this episode, Krausert discusses the risk of Canada being left behind as global oil producers strive for cleaner barrels. “There’s obviously a certain amount of caution based upon the uncertain world we live in. “This is still a very cash flow positive, strong industry,” he told Yahoo Finance Canada’s Editor’s Edition. He says the industry is “very healthy” at US$70 per barrel, after the benchmark North American price fell from US$122 in June. Kevin Krausert is CEO and co-founder of Avatar Innovations, a Calgary-based venture capital firm and startup accelerator that pairs entrepreneurs with the biggest companies in Canada’s energy patch. Recession fears are overrunning a fundamentally strong market for oil and gas, sending stocks and benchmark commodity prices lower as investors weigh the possibility of an economic downturn that saps demand for fuel. The historical ROIC vs WACC comparison of Cirrus Logic is shown below: Over the past 12 months, Cirrus Logic's ROIC was 17.81, while its WACC came in at 7.49. If the ROIC is higher than the WACC, it indicates that the company is creating value for shareholders. The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business. The 3-year average EBITDA growth rate is -10.3%, which ranks worse than 80% of the companies in Semiconductors industry.Īnother way to evaluate a company's profitability is to compare its return on invested capital (ROIC) to its weighted cost of capital (WACC). The 3-year average annual revenue growth rate of Cirrus Logic is -2.9%, which ranks worse than 66% of the companies in Semiconductors industry. The faster a company is growing, the more likely it is to be creating value for shareholders, especially if the growth is profitable. GuruFocus research has found that growth is closely correlated with the long term performance of a company's stock. Growth is probably the most important factor in the valuation of a company. This is the debt and cash of Cirrus Logic over the past years: The overall financial strength of Cirrus Logic is 8 out of 10, which indicates that the financial strength of Cirrus Logic is strong. Cirrus Logic has a cash-to-debt ratio of 2.57, which which ranks in the middle range of the companies in Semiconductors industry. Both the cash-to-debt ratio and interest coverage of a company are a great way to to understand its financial strength. To avoid permanent capital loss, an investor must do their research and review a company's financial strength before deciding to purchase shares. Link: These companies may deliever higher future returns at reduced risk.Ĭompanies with poor financial strength offer investors a high risk of permanent capital loss. Click here to check it out.Ĭirrus Logic Stock Is Estimated To Be Modestly Overvaluedīecause Cirrus Logic is relatively overvalued, the long-term return of its stock is likely to be lower than its business growth, which is estimated to grow 2.29% annually over the next three to five years. Warning! GuruFocus has detected 3 Warning Signs with CRUS. GF Value for Cirrus Logic is shown in the chart below. At its current price of $73 per share and the market cap of $4.2 billion, Cirrus Logic stock is estimated to be modestly overvalued. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. The stock of Cirrus Logic ( NAS:CRUS, 30-year Financials) appears to be modestly overvalued, according to GuruFocus Value calculation.
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