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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on CRUS

Cirrus Logic's recent performance was driven by its impressive Q3 earnings report, which saw the company post quarterly earnings of $2.97 per share, beating estimates. The company's strong results and upbeat Q4 guidance led to a significant increase in its stock price. Additionally, Cirrus Logic's ties to Apple (AAPL) and its overseas revenue trends have been positively impacting its prospects. The company has a "Moderate Buy" rating from analysts, with four assigning a buy recommendation and one a strong buy. Its earnings surprise history also suggests potential for future growth.

1.c. Company Highlights

2. Cirrus Logic Delivers Strong Q3 FY2026 Results

Cirrus Logic reported outstanding results for the third quarter of fiscal year 2026, with revenue of $580.6 million, above the top end of their guidance range. The company delivered record GAAP and non-GAAP earnings per share in the third quarter, with actual EPS coming out at $2.97, significantly higher than estimates of $2.42. The strong revenue performance was driven by stronger demand for components shipping into smartphones and a favorable mix of end devices.

Publication Date: Feb -16

📋 Highlights
  • Q3 Revenue Surpasses Guidance:: Revenue reached $580.6 million, exceeding the top end of guidance, driven by strong smartphone component demand and favorable device mix.
  • Record Earnings Per Share:: Achieved record GAAP and non-GAAP EPS, reflecting operational efficiency and product mix optimization.
  • PC Market Growth Projection:: PC revenue expected to double in FY2026 from FY2025’s low tens of millions, with mainstream platform shipments ramping with top six PC vendors.
  • Automotive Market Opportunity:: Targeting $800+ million addressable market by 2029 with haptic and telematics solutions, signaling significant expansion plans.
  • Share Repurchase & Strong Liquidity:: $70 million spent to repurchase 591,000 shares at $118.33 average price, ending Q3 with $1.08 billion in cash and no debt.

Business Segment Performance

In the flagship smartphone audio business, there was strong demand for the latest generation custom boosted amplifier and 22-nanometer smart codec. The high-performance mixed-signal business also saw customer engagement around the camera controller roadmap remaining strong. The company continues to invest R&D dollars in IP and capabilities around advanced battery and power applications, and is making progress in PCs, where they ramped the first shipments of their latest generation amplifier and codec in mainstream PC platforms.

Growth Prospects

The company is optimistic about its growth prospects, particularly in the PC space, where it expects revenue to roughly double in fiscal 2026 from the low tens of millions in fiscal 2025. This growth is driven by the company's products shipping with the top six PC vendors and increasing penetration of mainstream platforms. In fiscal 2027, the company expects revenue from mainstream platforms to roughly double, representing a significant proportion of its overall PC revenue.

Valuation and Outlook

With a P/E Ratio of 18.28 and an EV/EBITDA of 12.93, the market is pricing in a certain level of growth for Cirrus Logic. Analysts estimate next year's revenue growth at 3.7%. The company's strong financial position, with $1.08 billion in cash and investments and no debt outstanding, provides a solid foundation for future growth. The non-GAAP effective tax rate for fiscal year 2026 is expected to range from 16% to 18%, and the company continues to return value to shareholders through share repurchases, having utilized $70 million to repurchase approximately 591,000 shares in Q3.

Future Opportunities

The company also sees a significant opportunity in the automotive space, with a projected SAM of over $800 million by 2029. It has announced a family of haptic products for automotive and is working on various solutions for timing, audio, haptics, and telematics. With its strong technology roadmap and execution capabilities, Cirrus Logic is well-positioned to drive profitable growth and deliver long-term shareholder value.

3. NewsRoom

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First Trust Advisors LP Buys 23,440 Shares of Cirrus Logic, Inc. $CRUS

Mar -13

Source: defenseworld.net

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Cirrus Logic, Inc. $CRUS Shares Acquired by DNB Asset Management AS

Feb -27

Source: defenseworld.net

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Cirrus Logic EVP Sells 3000 Shares as Company Experiences High Executive Transactional Activity

Feb -22

Source: fool.com

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Apple Stock Is Interesting, but Here's What I'd Buy Instead

Feb -16

Source: fool.com

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18,218 Shares in Cirrus Logic, Inc. $CRUS Acquired by Caprock Group LLC

Feb -14

Source: defenseworld.net

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Is Cirrus Logic (CRUS) Outperforming Other Computer and Technology Stocks This Year?

Feb -12

Source: zacks.com

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International Markets and Cirrus Logic (CRUS): A Deep Dive for Investors

Feb -06

Source: zacks.com

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Cirrus Logic's Record Earnings Hide The Real Story

Feb -05

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.42%)

6. Segments

Audio Products

Expected Growth: 10.02%

Cirrus Logic's 10.02% growth in Audio Products is driven by increasing demand for smartphones and tablets, adoption of true wireless stereo (TWS) earbuds, and rising sales of smart speakers. Additionally, the company's focus on audio codecs, amplifiers, and haptic drivers for gaming consoles and PCs contributes to its growth.

High-Performance Mixed-Signal Products

Expected Growth: 8.45%

Cirrus Logic's high-performance mixed-signal products drive growth through increasing demand for audio and voice-enabled devices, adoption of wireless audio technologies, and rising need for power management in IoT and automotive applications, coupled with the company's strong relationships with leading OEMs and its ability to innovate and expand product offerings.

7. Detailed Products

Audio Codecs

Cirrus Logic's audio codecs are high-performance, low-power audio converters that enable high-quality audio playback and recording in portable devices, home audio systems, and automotive infotainment systems.

Smart Codec

Cirrus Logic's Smart Codec is a low-power, high-performance audio codec that integrates a digital signal processor (DSP) and analog-to-digital converter (ADC) to provide advanced audio processing capabilities.

Haptic Drivers

Cirrus Logic's haptic drivers are high-performance, low-power drivers that enable advanced haptic feedback in smartphones, gaming controllers, and virtual reality (VR) devices.

Power Amplifiers

Cirrus Logic's power amplifiers are high-performance, low-power amplifiers that enable high-quality audio playback in portable devices, home audio systems, and automotive infotainment systems.

Audio DSPs

Cirrus Logic's audio DSPs are high-performance, low-power digital signal processors that enable advanced audio processing capabilities in portable devices, home audio systems, and automotive infotainment systems.

8. Cirrus Logic, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Cirrus Logic, Inc. operates in the semiconductor industry, which is characterized by rapid technological advancements. While there are substitutes available, the company's focus on audio and high-performance mixed-signal processing has helped it maintain a competitive edge.

Bargaining Power Of Customers

Cirrus Logic, Inc. has a diverse customer base, including major players in the consumer electronics industry. However, the company's products are highly customized, which reduces the bargaining power of customers.

Bargaining Power Of Suppliers

Cirrus Logic, Inc. relies on a few key suppliers for its manufacturing process. While the company has some bargaining power due to its size, the suppliers also have some leverage due to the specialized nature of their products.

Threat Of New Entrants

The semiconductor industry has high barriers to entry, including significant capital expenditures and technological expertise. This makes it difficult for new entrants to compete with established players like Cirrus Logic, Inc.

Intensity Of Rivalry

The semiconductor industry is highly competitive, with many established players competing for market share. Cirrus Logic, Inc. faces intense competition from companies like Texas Instruments, Analog Devices, and STMicroelectronics.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.87%
Debt Cost 8.88%
Equity Weight 92.13%
Equity Cost 8.88%
WACC 8.88%
Leverage 8.54%

11. Quality Control: Cirrus Logic, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Cirrus Logic

A-Score: 5.6/10

Value: 4.8

Growth: 7.1

Quality: 8.4

Yield: 0.0

Momentum: 7.0

Volatility: 6.0

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Skyworks Solutions

A-Score: 5.1/10

Value: 5.9

Growth: 3.2

Quality: 6.7

Yield: 7.0

Momentum: 2.5

Volatility: 5.0

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Universal Display

A-Score: 4.7/10

Value: 2.5

Growth: 6.4

Quality: 8.6

Yield: 3.0

Momentum: 2.5

Volatility: 5.0

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Amkor Technology

A-Score: 4.5/10

Value: 4.2

Growth: 5.4

Quality: 4.9

Yield: 2.0

Momentum: 7.5

Volatility: 3.0

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Veeco Instruments

A-Score: 4.0/10

Value: 3.0

Growth: 5.9

Quality: 5.9

Yield: 0.0

Momentum: 5.0

Volatility: 4.3

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Vishay

A-Score: 3.9/10

Value: 8.2

Growth: 1.9

Quality: 3.0

Yield: 5.0

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

136.07$

Current Price

136.07$

Potential

-0.00%

Expected Cash-Flows