Cirrus Logic (CRUS) AI Stock Analysis

• Market Cap: $5.16B
• Dividend Yield: N/A
• Average Volume (3M): 607.77K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.40
• Revenue Growth: 5.99%
• EPS Growth: 23.09%
• Country: US
• Employees: 1,609
• Sector: Technology
• Sector Strength: 83
• Industry: Semiconductors
• EPS (TTM): 1.67
• Shares Outstanding: 51,560,135
• 10 Day Avg. Volume: 534,875
• 30 Day Avg. Volume: 607,773
• PEG Ratio: 1.76
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.28
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: 2.57
• 1Y Price Target: $121.00
• Price Target Upside: 20.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 80 Outperform
• Price Target: $116.00 ▲(15.94%Upside)

Cirrus Logic's strong financial performance and positive earnings call insights are the most significant contributors to the stock score. Technical analysis suggests moderate bullish momentum, while valuation indicates fair pricing. The stock repurchase plan further underscores financial confidence.

Positive Factors

Earnings Performance

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.

Geopolitical Advantage

Geopolitical dynamics favor the company as a trusted U.S.-based supplier, providing additional opportunities for growth.

Market Diversification

Opportunities to drive revenue growth through its end market diversification strategy are positively viewed, particularly in the PC and Automotive spaces.

Negative Factors

Competition

The company's design wins with the top five OEMs, representing about 80% of the unit volume, create significant growth potential.

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.

Product Dependency

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.

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 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
	EBIT
410.36M	343.47M	249.03M	366.34M	237.18M
	EBITDA
444.91M	393.72M	316.44M	423.41M	285.70M
	Net Income Common Stockholders
331.51M	274.57M	176.70M	326.36M	217.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
595.78M	526.54M	480.76M	380.42M	497.86M
	Total Assets
2.33B	2.23B	2.06B	2.12B	1.83B
	Total Debt
143.72M	155.22M	141.07M	177.84M	142.46M
	Net Debt
-395.90M	-347.55M	-304.71M	-191.97M	-299.71M
	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
0.00	384.02M	302.85M	94.74M	328.47M
	Operating Cash Flow
0.00	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: Neutral
• Last Price: 100.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRUS, the sentiment is Neutral. The current price of 100.05 is below the 20-day moving average (MA) of 102.46, above the 50-day MA of 96.21, and below the 200-day MA of 108.07, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 45.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRUS.

Cirrus Logic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMBS	83 Outperform	$6.05B	29.92	19.26%	―	30.13%	-42.27%
CRUS	80 Outperform	$5.16B	16.82	17.60%	―	5.99%	23.09%
ONTO	74 Outperform	$4.67B	21.77	11.83%	―	21.23%	56.90%
LSCC	74 Outperform	$6.40B	128.24	7.39%	―	-29.54%	-76.42%
SWKS	74 Outperform	$10.66B	27.74	6.70%	3.93%	-12.90%	-51.90%
QRVO	72 Outperform	$7.37B	132.83	1.60%	―	-1.34%	―
Sector *	62 Neutral	$11.75B	10.58	-7.10%	2.91%	7.47%	-7.95%

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.