Cirrus Logic (CRUS) AI Stock Analysis

• Market Cap: $5.25B
• Dividend Yield: N/A
• Average Volume (3M): 642.35K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.43
• Revenue Growth: 2.99%
• EPS Growth: 75.39%
• Country: US
• Employees: 1,609
• Sector: Technology
• Sector Strength: 65
• Industry: Semiconductors
• EPS (TTM): 1.67
• Shares Outstanding: 53,144,928
• 10 Day Avg. Volume: 521,748
• 30 Day Avg. Volume: 642,352
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.67
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $121.00
• Price Target Upside: 20.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Cirrus Logic exhibits strong financial health with excellent cash flow and a robust balance sheet, driving a solid financial performance score. However, technical indicators are currently unfavorable, indicating potential short-term challenges. The valuation is fair, though not compellingly low. The latest earnings call presents mixed results with some positive highlights, but a cautious outlook tempers enthusiasm. The appointment of a new CFO is a positive corporate development, suggesting strategic improvements ahead. Overall, while the company is fundamentally strong, the stock faces near-term technical and valuation challenges.

Positive Factors

Earnings

Cirrus Logic reported better results and guidance driven by better smartphone volumes.

Market Expansion

Securing design wins with the top five OEMs like Dell, Lenovo, HP, Asus, and Acer has created additional opportunities for the company as a trusted U.S.-based supplier.

Product Development

New timing products are gaining solid traction for Automotive and Professional Audio applications, which could become a meaningful revenue contributor over time.

Negative Factors

Competition

Revenue growth from the next generation iPhone will be driven by the waterfall effect as the Pro and Pro Max iPhone 16 proliferate across the remainder of the product family.

Market Volatility

The improving end market mix is expected to help smooth seasonal/customer volatility and drive sustainable, long-term revenue growth and earnings leverage.

Cirrus Logic Business Overview & Revenue Model

Company Description

Cirrus Logic, Inc., a fabless semiconductor company, provides low-power and high-precision mixed-signal processing solutions in the United States and internationally. It offers portable products, including codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with digital signal processer; boosted amplifiers; digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, hearing augmentation, and active noise cancellation. The company's audio products are used in smartphones, tablets, wireless headsets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products, such as haptic driver and sensing solutions, camera controllers, power conversion, and control ICs and fast-charging ICs used in various industrial and energy applications comprising digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.

How the Company Makes Money

Cirrus Logic makes money by designing and selling semiconductor products, primarily focusing on audio and voice signal processing solutions. The company's revenue model is largely based on the sale of these integrated circuits to major original equipment manufacturers (OEMs) in the consumer electronics industry. Key revenue streams include the sale of audio codecs, amplifiers, and other audio processing components that are integrated into smartphones, tablets, laptops, and automotive audio systems. Cirrus Logic has significant partnerships with leading technology companies, which contribute to its earnings by securing large-volume orders and long-term supply agreements. The company's ability to innovate and deliver high-quality audio solutions helps maintain its competitive edge and sustain its revenue growth.

Cirrus Logic Financial Statement Overview

Summary

Cirrus Logic is demonstrating strong financial performance across all verticals. The income statement highlights consistent profitability with room to enhance EBIT margins. The balance sheet reflects a solid capital structure with low leverage and high equity, promoting stability. Cash flow analysis reveals excellent cash generation and conversion, underscoring liquidity strength. Overall, the company is in a strong financial position with potential for continued growth and operational efficiency improvements.

Income Statement

The TTM (Trailing-Twelve-Months) data shows a solid gross profit margin of 52.3% and a net profit margin of 16.5%, indicating strong profitability. The revenue growth from the previous annual period is modest at 3%, reflecting a steady upward trajectory. The EBIT and EBITDA margins of 20.4% and 24% respectively suggest efficient operations, although there is room for improvement in EBIT margin compared to historical data.

Balance Sheet

Cirrus Logic maintains a low debt-to-equity ratio of 0.07, highlighting prudent financial leverage. The return on equity (ROE) is 15.5%, demonstrating effective use of equity to generate profits. The equity ratio stands at 83%, indicating a strong capital structure with substantial equity backing its assets, which contributes to financial stability.

Cash Flow

The company's free cash flow growth rate is impressive at 19.3%, showcasing strong cash generation capabilities. The operating cash flow to net income ratio of 1.59 reflects robust cash flow relative to earnings. Additionally, the free cash flow to net income ratio of 1.5 suggests effective conversion of earnings to cash, enhancing liquidity.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.79B	1.90B	1.78B	1.37B	1.28B
	Gross Profit
916.07M	956.98M	923.64M	707.30M	674.17M
	EBIT
343.47M	249.03M	366.34M	237.18M	173.48M
	EBITDA
401.95M	316.44M	423.41M	285.70M	242.52M
	Net Income Common Stockholders
274.57M	176.70M	326.36M	217.34M	159.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
526.54M	480.76M	380.42M	497.86M	314.13M
	Total Assets
2.23B	2.06B	2.12B	1.83B	1.59B
	Total Debt
155.22M	141.07M	177.84M	142.46M	142.89M
	Net Debt
-347.55M	-304.71M	-191.97M	-299.71M	-149.23M
	Total Liabilities
414.56M	405.68M	523.58M	441.61M	362.90M
	Stockholders Equity
1.82B	1.66B	1.60B	1.39B	1.23B
Cash Flow		Free Cash Flow
383.33M	302.85M	94.74M	328.47M	274.24M
	Operating Cash Flow
421.67M	339.57M	124.75M	348.94M	295.81M
	Investing Cash Flow
-163.01M	-33.33M	-18.37M	-77.67M	-100.22M
	Financing Cash Flow
-201.68M	-230.27M	-178.73M	-121.22M	-119.65M

Cirrus Logic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRUS, the sentiment is Positive. The current price of 100.53 is above the 20-day moving average (MA) of 92.39, above the 50-day MA of 95.91, and below the 200-day MA of 110.41, indicating a neutral trend. The MACD of 1.43 indicates Negative momentum. The RSI at 62.63 is Neutral, neither overbought nor oversold. The STOCH value of 77.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRUS.

Cirrus Logic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMBS	78 Outperform	$5.39B	26.27	19.26%	―	30.13%	-42.27%
CRUS	73 Outperform	$5.25B	17.95	17.60%	―	2.99%	75.39%
ONTO	72 Outperform	$5.98B	30.15	11.83%	―	21.23%	56.90%
SWKS	72 Outperform	$10.14B	20.26	6.70%	4.08%	-12.90%	-51.90%
LSCC	71 Outperform	$7.14B	118.74	7.39%	―	-29.54%	-76.42%
Sector *	60 Neutral	$10.96B	10.28	-6.73%	2.97%	7.74%	-12.45%
QRVO	57 Neutral	$6.57B	120.23	1.60%	―	-1.34%	―

Cirrus Logic Corporate Events

Cirrus Logic Appoints New CFO Amid Strong Revenue

Cirrus Logic has appointed Jeff Woolard as the new Chief Financial Officer, effective February 24, 2025. Woolard brings extensive experience from his previous roles at Velocity Global, Solidigm, and Intel Corporation. In conjunction with this appointment, Ulf Habermann will step down as interim CFO but will continue to serve as Principal Accounting Officer. Additionally, Cirrus Logic reported third-quarter fiscal year 2025 revenue of $555.7 million, exceeding guidance due to strong demand for smartphone audio components and expansion in the laptop market. The company anticipates revenue between $350 million and $410 million for the fourth quarter, with a gross margin forecasted between 51% and 53%.