Quality Investor

Cirrus Logic, Inc.

Rank #126Capital Return

CRUS · Nasdaq · Technology

Cirrus Logic, Inc. (CRUS) — Rank #126 by gross profitability (GP/assets 0.41) · ROE 18.9% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0000772406 · all metrics point-in-time as of the filing date.

About

Cirrus Logic, Inc., a fabless semiconductor company, develops mixed-signal processing solutions and audio products in China, the United States, and internationally.

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The company offers audio products, including amplifiers; 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 integrated digital signal processing; standalone digital signal processors; and SoundClear technology for use in smartphones, PCs, tablets, AR/VR headsets, wearables, home theatre systems, automotive entertainment systems, and professional audio systems. It also provides camera controllers, haptic and sensing solutions, and battery and power ICs for smartphones, as well as products for automotive, industrial, and imaging applications. 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.

Industry
Semiconductors
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
March 27
Website
cirrus.com

Price History

CRUS+42.1% · +7.3% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$6.10B

P/E (annual)

15.5

P/S (annual)

3.1

P/B

2.8

P/OCF (annual)

9.4

Shareholder Yield

4.4%

Employees

1,651

Industry

Semiconductors

Exchange

Nasdaq

Signal Flags

2 green
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.41
Return on equity
18.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.17
Current ratio
7.58×
Net cash
$810.67M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
4.1%

Growth

2/2 pass
Revenue growth
5.3%
Piotroski F-Score
7 / 9
Share dilution
-4.4%

Terry Smith quality gate

Passes 4/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-1.7%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -4.4% — per-share value needs a total required return of -6.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 6.3%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-5.4%

r = 10% (base)

-1.7%

r = 12%

1.5%

Net debt / market cap: -12.6%

Note: current FCF margin is 1.8σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $636.6M3Y mean FCF: $480.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

21.2xFair
10.1xmed 21.0x28.1x

P / S

Price / revenue per share

4.4xExpensive
1.7xmed 2.8x4.4x

P / B

Price / book value per share

4.1xExpensive
2.1xmed 2.9x4.1x

P / GP

Price / gross profit per share

8.3xExpensive
3.4xmed 5.3x8.3x

P / FCF

Price / free cash flow per share

13.8xFair
8.0xmed 13.8x47.7x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.41

Primary signal (Novy-Marx).

3rd of 17 SIC 3674 peers

Return on equity

18.9%

Gross margin

52.8%

9th of 17 SIC 3674 peers

Revenue growth (YoY)

5.3%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

1.7%

Revenue CAGR (5Y)

7.8%

Earnings CAGR (3Y)

32.9%

FCF CAGR (3Y)

27.9%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.17

3rd of 16 SIC 3674 peers (best = lowest)

Current ratio

7.58×

2nd of 17 SIC 3674 peers

Quick ratio

5.48×

Net cash

$810.67M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$636.61M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.54

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

4.1%

Stock-based comp intensity.

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212026
Value
Hypergrowth
Capital Return