Cirrus Logic (CRUS) AI Stock Analysis

• Market Cap: $6.48B
• Dividend Yield: N/A
• Average Volume (3M): 555.59K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 1.34
• Revenue Growth: 4.52%
• EPS Growth: 18.89%
• Country: US
• Employees: 1,609
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.51
• Shares Outstanding: 51,332,176
• 10 Day Avg. Volume: 662,678
• 30 Day Avg. Volume: 555,592
• PEG Ratio: 0.68
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 2.79
• P/FCF Ratio: 12.72
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 2.68
• Enterprise Value/Gross Profit: 5.07
• Enterprise Value/Ebitda: 9.93
• 1Y Price Target: $131.67
• Price Target Upside: 4.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: $135.00 ▲(7.02% Upside)

Cirrus Logic's strong financial performance and positive earnings call outlook are the main drivers of its score. The technical analysis indicates a positive trend, though caution is advised due to overbought signals. Valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Strong Cash Position

A robust cash position enhances financial flexibility, enabling strategic investments, acquisitions, or shareholder returns, supporting long-term growth.

Strategic Diversification

Diversifying into PC and automotive markets reduces reliance on smartphones, broadening revenue streams and mitigating sector-specific risks.

Strong Profitability

High profitability margins indicate efficient operations and strong market positioning, supporting sustainable earnings and competitive advantage.

Negative Factors

Slowed Revenue Growth

Slowed revenue growth suggests challenges in expanding market share, potentially impacting long-term growth prospects if not addressed.

Sequential Revenue Decline

A sequential revenue decline highlights vulnerability to fluctuations in smartphone demand, which could affect future financial stability.

Increased Operating Expenses

Rising operating expenses can pressure margins and reduce profitability if not managed, potentially impacting long-term financial health.

Cirrus Logic Business Overview & Revenue Model

Company Description

Cirrus Logic, Inc. is a leading provider of high-precision analog and mixed-signal integrated circuits for a variety of audio and voice signal processing applications. The company operates primarily in the semiconductor sector, focusing on products that enhance audio performance in consumer electronics, including smartphones, tablets, and smart home devices. Cirrus Logic's core offerings include audio converters, amplifiers, and digital signal processors that enable high-quality audio experiences for end-users.

How the Company Makes Money

Cirrus Logic generates revenue primarily through the sale of its semiconductor products, which are utilized in consumer electronics. The company's revenue model is largely based on the volume of chips sold to Original Equipment Manufacturers (OEMs) in the audio market. Key revenue streams include sales of audio codecs, amplifiers, and other related integrated circuits. Partnerships with major technology companies, such as Apple, have significantly contributed to its earnings, as a substantial portion of Cirrus Logic's revenue comes from supplying components for Apple's product lineup. Additionally, the company may benefit from licensing agreements and royalties, providing further income opportunities.

Cirrus Logic Financial Statement Overview

Summary

Cirrus Logic demonstrates strong financial health with robust profitability, a solid balance sheet, and effective cash flow management. The company maintains healthy margins and low leverage, although revenue growth has slowed, indicating potential market saturation or increased competition.

Income Statement

Cirrus Logic shows strong profitability with a consistent gross profit margin above 50% and a net profit margin around 17% in the TTM. Revenue growth is positive, albeit modest, indicating stable demand. The EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the revenue growth rate has slowed compared to previous years, which could indicate market saturation or increased competition.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of approximately 0.07, indicating conservative leverage. Return on equity is strong at around 17%, showcasing effective use of equity capital. The equity ratio is healthy, suggesting a strong asset base relative to liabilities. However, the slight increase in debt over the years warrants monitoring.

Cash Flow

Cirrus Logic demonstrates robust cash flow management with a significant free cash flow growth rate of 8.6% in the TTM. The operating cash flow to net income ratio is strong, indicating efficient cash conversion. The free cash flow to net income ratio is close to 1, reflecting good cash profitability. However, the cash flow growth has been inconsistent over the years, which could pose risks in less favorable market conditions.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.93B	1.90B	1.79B	1.90B	1.78B	1.37B
Gross Profit	1.02B	996.04M	916.07M	956.98M	923.64M	707.30M
EBITDA	521.60M	496.76M	413.14M	316.44M	431.67M	285.70M
Net Income	350.11M	331.51M	274.57M	176.70M	326.36M	217.34M
Balance Sheet
Total Assets	2.29B	2.33B	2.23B	2.06B	2.12B	1.83B
Cash, Cash Equivalents and Short-Term Investments	614.79M	595.78M	526.54M	480.76M	380.42M	497.86M
Total Debt	141.35M	143.72M	155.22M	141.07M	177.84M	142.46M
Total Liabilities	364.43M	377.62M	414.56M	405.68M	523.58M	441.61M
Stockholders Equity	1.93B	1.95B	1.82B	1.66B	1.60B	1.39B
Cash Flow
Free Cash Flow	458.07M	415.61M	384.02M	302.85M	94.74M	330.69M
Operating Cash Flow	473.34M	444.37M	421.67M	339.57M	124.75M	348.94M
Investing Cash Flow	-63.94M	-124.28M	-163.01M	-33.33M	-18.37M	-77.67M
Financing Cash Flow	-351.88M	-283.23M	-201.68M	-230.27M	-178.73M	-121.22M

Cirrus Logic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 126.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 126.14 is above the 20-day moving average (MA) of 119.01, above the 50-day MA of 112.15, and above the 200-day MA of 103.93, indicating a bullish trend. The MACD of 3.95 indicates Negative momentum. The RSI at 66.87 is Neutral, neither overbought nor oversold. The STOCH value of 76.98 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
CRUS	77 Outperform	$6.48B	19.75	18.53%	―	4.52%	18.89%
AMKR	76 Outperform	7.17B	23.79	7.24%	2.54%	-1.20%	-19.46%
SWKS	74 Outperform	11.80B	31.62	9.41%	3.53%	-8.24%	-48.31%
SMTC	65 Neutral	5.46B	266.71	4.30%	―	22.22%	―
SITM	61 Neutral	7.61B	-83.98	-13.38%	―	65.12%	15.46%
ALGM	51 Neutral	5.50B	-80.89	-7.43%	―	-18.82%	-195.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Cirrus Logic Corporate Events

Cirrus Logic Reports Strong Q1 FY2026 Financial Results

On August 5, 2025, Cirrus Logic reported strong financial results for the first quarter of fiscal year 2026, with revenue of $407.3 million, driven by demand for its custom boosted amplifier and new smart codec for smartphones. The company also made progress in diversifying its product and end-market presence, gaining traction in the laptop market and ramping up production in professional audio, automotive, industrial, and imaging sectors. Looking ahead, Cirrus Logic expects second-quarter revenue to range between $510 million and $570 million, with a gross margin forecasted between 51% and 53%.

Cirrus Logic Holds Annual Stockholders Meeting

On July 29, 2025, Cirrus Logic held its Annual Meeting of Stockholders, where key proposals were voted on. The stockholders elected directors, ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending March 28, 2026, and approved executive officer compensation. These decisions are expected to influence the company’s governance and financial oversight, impacting its strategic direction and stakeholder confidence.