Cirrus Logic (CRUS) AI Stock Analysis

• Market Cap: $5.44B
• Dividend Yield: N/A
• Average Volume (3M): 518.63K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 1.39
• Revenue Growth: 5.99%
• EPS Growth: 23.09%
• Country: US
• Employees: 1,609
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): 1.67
• Shares Outstanding: 51,298,360
• 10 Day Avg. Volume: 506,380
• 30 Day Avg. Volume: 518,629
• PEG Ratio: 1.87
• Price to Book (P/B): 2.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.98
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 5.10
• Enterprise Value/Ebitda: 2.71
• 1Y Price Target: $121.00
• Price Target Upside: 14.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 79 Outperform
• Price Target: $119.00 ▲(12.29%Upside)

Cirrus Logic's strong financial performance, highlighted by robust profitability and solid cash flow generation, significantly contributes to its overall stock score. The earnings call provided positive insights, although it noted some challenges. Technical analysis indicates short-term strength, but a longer-term cautious outlook is suggested. The valuation is moderate, with no dividend yield.

Positive Factors

Earnings

CRUS delivered a solid March quarter print with strong revenue and earnings upside and surprisingly upbeat June quarter guidance driven by healthy smartphone unit volume with a richer mix of latest-generation components.

Product Innovation

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

Strategic Partnerships

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

Negative Factors

Market Competition

The company's expanding presence in the greenfield laptop market faces challenges as it competes with established players.

Supply Chain Risks

Increased geopolitical tensions could impact the company's supply chain, posing risks to its role as a trusted U.S.-based supplier.

Cirrus Logic Business Overview & Revenue Model

Company Description

Cirrus Logic, Inc. (CRUS) is a leading semiconductor supplier that specializes in providing high-precision analog and digital signal processing components. The company is renowned for its audio and voice IC (integrated circuit) products, which are used in a variety of consumer electronics such as smartphones, tablets, and audio devices. Cirrus Logic serves a diverse set of markets, including mobile communications, automotive, energy, and industrial applications, with a focus on delivering innovative solutions that enhance audio quality and user experience.

How the Company Makes Money

Cirrus Logic makes money primarily through the sale of its semiconductor products, particularly its audio and voice ICs. The company's revenue streams are largely driven by supplying these components to major consumer electronics manufacturers, including leading smartphone and tablet producers. Cirrus Logic's financial performance is significantly influenced by its partnerships with these key customers, as well as its ability to innovate and meet the evolving demands for high-quality audio solutions. In addition to its core products, Cirrus Logic may generate revenue from licensing its technology and providing engineering services, although these are not the primary sources of income.

Cirrus Logic Financial Statement Overview

Summary

Cirrus Logic demonstrates strong financial health across all verticals. The income statement reflects high profitability and growth, while the balance sheet shows low leverage and solid equity utilization. Cash flow metrics highlight excellent cash generation and conversion capabilities. The company is well-positioned for future growth with its efficient operations and prudent financial management.

Income Statement

Cirrus Logic shows strong profitability with a consistent increase in net income, demonstrated by a 20.7% net profit margin for TTM. The company has also shown a solid revenue growth rate of 6.0% from the previous year. Gross profit margin remains stable at 52.5%, indicating efficient production processes. EBIT and EBITDA margins stand at 21.6% and 24.5% respectively, highlighting operational efficiency and strong earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet is healthy, with a low debt-to-equity ratio of 0.07, showing prudent financial leverage. Return on equity is solid at 17.0% for TTM, indicating effective use of equity capital to generate profits. The equity ratio is strong at 83.8%, suggesting financial stability with a high proportion of equity financing.

Cash Flow

Cash flow generation is robust, with a notable free cash flow growth rate of 10.0% year-over-year. The operating cash flow to net income ratio is 1.34, reflecting high cash conversion efficiency. Free cash flow to net income ratio is 1.27, underscoring the company's ability to generate cash relative to its net earnings.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.90B	1.79B	1.90B	1.78B	1.37B
Gross Profit	1.00B	916.07M	956.98M	923.64M	707.30M
EBITDA	496.76M	413.14M	316.44M	428.40M	285.70M
Net Income	331.51M	274.57M	176.70M	326.36M	217.34M
Balance Sheet
Total Assets	2.33B	2.23B	2.06B	2.12B	1.83B
Cash, Cash Equivalents and Short-Term Investments	595.78M	526.54M	480.76M	380.42M	497.86M
Total Debt	143.72M	155.22M	141.07M	177.84M	142.46M
Total Liabilities	377.62M	414.56M	405.68M	523.58M	441.61M
Stockholders Equity	1.95B	1.82B	1.66B	1.60B	1.39B
Cash Flow
Free Cash Flow	415.61M	384.02M	302.85M	94.74M	330.69M
Operating Cash Flow	444.37M	421.67M	339.57M	124.75M	348.94M
Investing Cash Flow	-124.28M	-163.01M	-33.33M	-18.37M	-77.67M
Financing Cash Flow	-283.23M	-201.68M	-230.27M	-178.73M	-121.22M

Cirrus Logic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 105.98 is above the 20-day moving average (MA) of 103.10, above the 50-day MA of 100.06, and above the 200-day MA of 105.37, indicating a bullish trend. The MACD of 1.72 indicates Negative momentum. The RSI at 58.19 is Neutral, neither overbought nor oversold. The STOCH value of 80.16 is Negative, 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	82 Outperform	$6.87B	33.51	19.26%	―	30.13%	-42.27%
CRUS	79 Outperform	$5.44B	17.65	17.60%	―	5.99%	23.09%
ONTO	74 Outperform	$4.83B	22.40	11.83%	―	21.23%	56.90%
SWKS	74 Outperform	$11.23B	29.22	6.70%	3.74%	-12.90%	-51.90%
LSCC	73 Outperform	$6.90B	135.10	7.39%	―	-29.54%	-76.42%
QRVO	72 Outperform	$7.79B	142.58	1.60%	―	-1.34%	―
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.54%	-19.87%

Cirrus Logic Corporate Events

Cirrus Logic Reports Strong Q4 2025 Financial Results

On May 6, 2025, Cirrus Logic announced its financial results for the fourth quarter and full fiscal year 2025, reporting a revenue of $424.5 million for the quarter and $1.90 billion for the year. The company achieved a six percent revenue growth and record earnings per share, driven by strategic growth initiatives including the launch of new products and expansion in the laptop market. In March 2025, the Board authorized a $500 million stock repurchase plan, aiming to utilize working capital and cash flow from operations. The repurchase plan reflects Cirrus Logic’s confidence in its financial health and market position, although the company is not obligated to repurchase a specific amount of shares.