Cirrus Logic Inc. Stock Buy Recommendation Reiterated (CRUS)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- Cirrus Logic (Nasdaq: CRUS) has been reiterated by TheStreet Ratings as a buy with a ratings score of B- . The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

Highlights from the ratings report include:
  • CRUS's very impressive revenue growth greatly exceeded the industry average of 11.0%. Since the same quarter one year prior, revenues leaped by 153.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CRUS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, CRUS has a quick ratio of 2.48, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 296.00% and other important driving factors, this stock has surged by 26.43% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CRUS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 305.6% when compared to the same quarter one year prior, rising from $16.73 million to $67.86 million.
  • Net operating cash flow has significantly increased by 433.33% to $79.19 million when compared to the same quarter last year. In addition, CIRRUS LOGIC INC has also vastly surpassed the industry average cash flow growth rate of -93.00%.

Cirrus Logic, Inc., a fabless semiconductor company, develops signal processing integrated circuits (ICs) for audio and energy markets. Cirrus Logic has a market cap of $1.79 billion and is part of the technology sector and electronics industry. The company has a P/E ratio of 11.9, below the S&P 500 P/E ratio of 17.7. Shares are down 4.2% year to date as of the close of trading on Wednesday.

You can view the full Cirrus Logic Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE

null

More from Markets

Jim Cramer: Aramark Is a Great Company but It's Levered to Baseball

Jim Cramer: Aramark Is a Great Company but It's Levered to Baseball

Preferred Stock & Common Stock: What's the Difference?

Preferred Stock & Common Stock: What's the Difference?

It's Not Over Yet: Keep an Eye on FANG Stocks

It's Not Over Yet: Keep an Eye on FANG Stocks

5 Stocks That Are Screaming Buys Right Now

5 Stocks That Are Screaming Buys Right Now

Jim Cramer on the Markets: 2:45pm Is a Make or Break Level

Jim Cramer on the Markets: 2:45pm Is a Make or Break Level