This week the Valens Securities team highlights our most interesting equity insight from across our tools and our analysis.
Cirrus has strong management alignment, favorable fundamentals and is making smart strategic decisions, even with near-term potential headwinds, overly pessimistic market valuations signal opportunity for equity upside
At current valuations, market expectations for CRUS remain modest. CRUS successfully improved UAFRS-based ROA over the last several years, from what was below cost-of-capital levels to 22%-28% over the last four years. This was primarily due to UAFRS-based Earnings Margin expansion and steady Adjusted Asset Turns improvement.