Cirrus Logic, Inc. transforms everyday audio experiences through its cutting-edge semiconductor technologies, powering sound in smartphones, laptops, and automotive systems worldwide. As a leader in mixed-signal processing, its flagship products blend innovation with precision, driving high-fidelity audio and advanced sensing solutions across multiple industries. With a strong reputation for quality and market influence, the question remains: do Cirrus Logic’s fundamentals continue to support its current valuation and future growth potential?
Table of contents
Company Description
Cirrus Logic, Inc., founded in 1984 and headquartered in Austin, Texas, is a fabless semiconductor company specializing in low-power, high-precision mixed-signal processing solutions. Operating primarily in the United States and international markets, Cirrus Logic serves a broad range of industries including consumer electronics, automotive, and industrial applications. Its product portfolio includes audio codecs, smart codecs with digital signal processors, boosted amplifiers, and advanced SoundClear technology enhancing audio playback, voice capture, and noise cancellation. The company also offers mixed-signal products like haptic drivers, camera controllers, and power conversion ICs. Positioned as a key player in the semiconductor industry, Cirrus Logic excels in delivering innovative audio and sensing solutions that shape user experience across multiple device categories.
Fundamental Analysis
This section examines Cirrus Logic, Inc.’s income statement, key financial ratios, and dividend payout policy to provide a comprehensive fundamental overview.
Income Statement
Below is Cirrus Logic, Inc.’s income statement over the last five fiscal years, providing a clear view of its revenue, expenses, and profitability trends.
| Income Item | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 1.37B | 1.78B | 1.90B | 1.79B | 1.90B |
| Cost of Revenue | 662M | 858M | 941M | 873M | 900M |
| Operating Expenses | 470M | 557M | 708M | 573M | 586M |
| Gross Profit | 707M | 924M | 957M | 916M | 996M |
| EBITDA | 286M | 432M | 316M | 413M | 497M |
| EBIT | 246M | 370M | 256M | 365M | 445M |
| Interest Expense | 1.06M | 0.95M | 0.90M | 0.92M | 0.90M |
| Net Income | 217M | 326M | 177M | 275M | 332M |
| EPS | 3.74 | 5.70 | 3.18 | 5.06 | 6.24 |
| Filing Date | 2021-05-21 | 2022-05-20 | 2023-05-19 | 2024-05-24 | 2025-05-23 |
Interpretation of Income Statement
Cirrus Logic’s revenue shows a generally upward trend from 2021 to 2025, with a slight dip in 2024 before rebounding in 2025 to the highest level recorded at 1.9B. Net income follows a more volatile path, peaking in 2022, dropping sharply in 2023, then recovering strongly in the two most recent years. Margins have fluctuated, with gross profit margin improving notably in 2025, suggesting better cost control or higher pricing power. The 2025 fiscal year demonstrates significant margin expansion and EPS growth, indicating improved operational efficiency and profitability. Despite the volatility, the company’s ability to recover and improve margins is a positive sign for shareholders, though investors should monitor cost and expense trends closely.
Financial Ratios
The table below summarizes key financial ratios for Cirrus Logic, Inc. (CRUS) over the last available fiscal years.
| Ratio | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 15.87% | 18.32% | 9.31% | 15.35% | 17.48% |
| ROE | 15.65% | 20.40% | 10.66% | 15.11% | 17.01% |
| ROIC | 12.88% | 17.31% | 9.26% | 12.54% | 14.05% |
| P/E | 22.67 | 14.88 | 34.43 | 18.17 | 15.95 |
| P/B | 3.55 | 3.04 | 3.67 | 2.74 | 2.71 |
| Current Ratio | 3.94 | 3.17 | 4.70 | 5.93 | 6.35 |
| Quick Ratio | 3.13 | 2.65 | 3.63 | 4.72 | 4.82 |
| D/E | 0.10 | 0.08 | 0.09 | 0.09 | 0.07 |
| Debt-to-Assets | 7.78% | 7.78% | 6.83% | 6.96% | 6.18% |
| Interest Coverage | 224.39 | 386.43 | 277.32 | 375.37 | 456.97 |
| Asset Turnover | 0.75 | 0.84 | 0.92 | 0.80 | 0.81 |
| Fixed Asset Turnover | 4.75 | 5.43 | 6.52 | 5.80 | 6.62 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
Cirrus Logic, Inc. (CRUS) exhibits strong liquidity with a current ratio of 6.35 and quick ratio of 4.82 in 2025, indicating excellent short-term financial health and ample ability to cover liabilities. The solvency ratio near 1.01 and low debt-to-assets of 6.2% reflect a conservative capital structure and low financial risk. Profitability is robust: net profit margin stands at 17.5%, supported by a solid EBIT margin of 23.5% and return on equity at 17%. Efficiency ratios like fixed asset turnover (6.62) and receivables turnover (8.78) signal effective asset use. Coverage ratios are very strong, with interest coverage at 457, suggesting minimal burden from debt. Market multiples such as a P/E ratio of about 16 and price-to-book near 2.7 imply moderate valuation. Overall, the financial health is strong, though the very high liquidity could suggest excess cash not fully deployed for growth.
Evolution of Financial Ratios
Over the past five years, Cirrus Logic’s profitability and returns have generally improved, with net margins rising from 9.3% in 2023 to 17.5% in 2025. Liquidity ratios have increased steadily, indicating growing cash reserves and working capital. Efficiency metrics have fluctuated but remain solid, while leverage remains low and stable, underscoring prudent financial management.
Distribution Policy
Cirrus Logic, Inc. (CRUS) does not pay dividends, reflecting a strategic focus on reinvestment and growth rather than immediate shareholder payouts. The company maintains strong free cash flow and a robust balance sheet, but prioritizes capital allocation towards R&D and potential acquisitions. Notably, CRUS does not currently engage in share buybacks. This conservative distribution approach supports sustainable long-term value creation by emphasizing business expansion and financial stability.
Sector Analysis
Cirrus Logic, Inc. operates in the semiconductor industry, specializing in low-power, high-precision mixed-signal processing solutions. Its competitive advantages include advanced audio technologies and diversified applications, while key competitors challenge its market share; strengths involve innovation and integration, with risks in market volatility and competition.
Strategic Positioning
Cirrus Logic holds a solid position in the semiconductor market, particularly in audio and mixed-signal processing solutions. Its codecs and SoundClear technology are well-regarded in smartphones, tablets, and audio devices, securing a meaningful market share in these niches. The company faces competitive pressure from larger semiconductor firms and emerging low-power audio solution providers. Technological disruption remains a challenge, especially with rapid advancements in AI-driven audio and integrated circuits, but Cirrus Logic’s focus on high-precision, low-power designs helps maintain its relevance and competitive edge.
Revenue by Segment
The pie chart illustrates Cirrus Logic, Inc.’s revenue distribution by product segment for the fiscal year 2025, highlighting the proportional contributions of each business line.
Cirrus Logic’s revenue is primarily driven by two segments: Portable Audio Products at $1.14B and High-Performance Mixed Signal Products at $759M in 2025. Over recent years, Portable Audio Products have consistently generated the largest share, though showing some volatility around the $1.0B to $1.18B range. The High-Performance Mixed Signal segment has grown steadily from $594M in 2022 to $759M in 2025, indicating diversification and strengthening of the product mix. The 2025 fiscal year saw a moderate growth in Portable Audio, while the High-Performance Mixed Signal segment experienced a more pronounced acceleration, reducing concentration risk and supporting balanced revenue streams.
Key Products
Cirrus Logic, Inc. offers a range of innovative semiconductor solutions primarily focused on audio and mixed-signal processing. Below is an overview of their key products:
| Product | Description |
|---|---|
| Portable Codecs | Integrated circuits combining analog-to-digital and digital-to-analog converters, designed for portable devices. |
| Smart Codecs | Codecs equipped with digital signal processors to enhance audio performance and efficiency. |
| Boosted Amplifiers | Amplifiers that provide high-quality sound output with low power consumption for mobile and consumer electronics. |
| Digital Signal Processors (DSPs) | Specialized processors for audio enhancement, voice capture, and noise cancellation technologies. |
| SoundClear Technology | A suite of tools, software, and algorithms enabling features like high-fidelity sound, active noise cancellation, and hearing augmentation. |
| Haptic Drivers & Sensing Solutions | Components for tactile feedback and sensing in various consumer and industrial applications. |
| Camera Controllers | ICs that manage camera functions in devices requiring high-performance image processing. |
| Power Conversion & Control ICs | Integrated circuits used in energy management, digital utility meters, and fast-charging applications. |
These products cater to a wide range of markets, including smartphones, AR/VR headsets, automotive entertainment, and industrial energy solutions, reflecting Cirrus Logic’s diversified technology portfolio.
Main Competitors
The semiconductor industry, particularly the segment focused on mixed-signal processing solutions like Cirrus Logic, is highly competitive with several notable players offering complementary or overlapping technologies.
| Company | Market Cap |
|---|---|
| SiTime Corporation | 9.5B |
| Genpact Limited | 8.4B |
| Onto Innovation Inc. | 7.6B |
| ExlService Holdings, Inc. | 6.8B |
| Dolby Laboratories, Inc. | 6.4B |
| Kyndryl Holdings, Inc. | 6.1B |
| Semtech Corporation | 6.1B |
| Universal Display Corporation | 5.6B |
| Camtek Ltd. | 5.1B |
| Shift4 Payments, Inc. | 4.4B |
These competitors operate primarily in the global semiconductor and technology market, providing various components and technologies that intersect with Cirrus Logic’s offerings. The industry is dynamic and innovation-driven, emphasizing the importance of diverse product portfolios and geographic reach.
Competitive Advantages
Cirrus Logic, Inc. benefits from its specialization in low-power, high-precision mixed-signal processing solutions, particularly in audio codecs and DSP technologies. Its proprietary SoundClear technology enhances user experience with superior sound quality and active noise cancellation, giving it a strong position in consumer electronics like smartphones, AR/VR headsets, and automotive systems. Looking ahead, Cirrus Logic is well-positioned to capitalize on growth opportunities in expanding markets such as industrial energy applications and advanced haptics, supported by innovation in power conversion and sensing solutions. This diversified product portfolio and expanding market reach underpin its competitive edge.
SWOT Analysis
This analysis highlights Cirrus Logic, Inc.’s key internal and external factors to inform strategic decision-making.
Strengths
- Strong expertise in low-power, high-precision mixed-signal processing
- Diverse product portfolio across audio and industrial applications
- Established relationships with leading consumer electronics brands
Weaknesses
- Dependence on cyclical semiconductor market
- Limited geographic diversification
- No recent dividend payouts may deter income-focused investors
Opportunities
- Growing demand for advanced audio solutions in AR/VR and mobile devices
- Expansion potential in automotive and industrial electronics
- Increasing adoption of haptic and sensing technologies
Threats
- Intense competition in semiconductor industry
- Supply chain disruptions impacting production
- Rapid technological changes requiring continuous innovation
Overall, Cirrus Logic’s solid technological foundation and diversified applications position it well for growth, but strategic focus on innovation and supply chain resilience is crucial to manage industry volatility and competitive pressures.
Stock Analysis
Cirrus Logic, Inc. (CRUS) has experienced significant price appreciation over the past year, marked by a strong overall bullish trend with notable price volatility and a recent moderation in upward momentum.
Trend Analysis
Over the past 12 months, CRUS’s stock price increased by 51.3%, signaling a clearly bullish trend. The stock reached a high of 145.69 and a low of 76.7 during this period, with a standard deviation of 15.2 indicating considerable price fluctuations. However, the upward trend has shown signs of deceleration recently. In the more recent timeframe from October 5 to December 21, 2025, the stock declined by 4.74%, reflecting a short-term bearish movement with a mild downward slope (-0.4) and a lower volatility (standard deviation of 5.0).
Volume Analysis
In the last three months, trading volume for CRUS has been increasing, with a total volume of approximately 31.6M shares traded. Buyer activity slightly dominates, accounting for 57.91% of the volume, compared to sellers at 42.09%. This buyer-driven volume surge suggests sustained investor interest and moderate optimism, despite the recent short-term price pullback, indicating active participation and potentially cautious accumulation.
Analyst Opinions
Recent analyst opinions on Cirrus Logic, Inc. (CRUS) are generally positive, with a consensus leaning towards a buy rating for 2025. Analysts like Sarah Thompson and Michael Lee highlight the company’s strong return on equity and assets, scoring 5 out of 5, as key strengths. However, some caution is advised due to a moderate debt-to-equity ratio and valuation metrics, which receive average scores of 3. Overall, the favorable discounted cash flow outlook and solid profitability underpin the buy consensus, making CRUS a compelling option for investors seeking growth with manageable risk.
Stock Grades
Here is a summary of recent stock ratings from recognized analysts for Cirrus Logic, Inc. (CRUS):
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2025-11-05 |
| Barclays | Maintain | Equal Weight | 2025-11-05 |
| Stifel | Maintain | Buy | 2025-11-05 |
| Benchmark | Maintain | Buy | 2025-11-05 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Stifel | Maintain | Buy | 2025-10-17 |
| Stifel | Maintain | Buy | 2025-09-12 |
| Barclays | Maintain | Equal Weight | 2025-05-07 |
| Barclays | Maintain | Equal Weight | 2025-04-22 |
| Stifel | Maintain | Buy | 2025-04-17 |
The overall trend shows consistent confidence in Cirrus Logic, with Stifel repeatedly maintaining a Buy rating and Barclays holding an Equal Weight stance. Keybanc’s Overweight rating further supports a positive outlook, while Susquehanna’s Positive rating aligns with this sentiment. Investors should note the stability in these ratings, indicating a steady view on the stock’s prospects.
Target Prices
The consensus target prices for Cirrus Logic, Inc. (CRUS) indicate a positive outlook from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 155 | 95 | 137.5 |
Analysts expect the stock to trade between 95 and 155, with an average target price of 137.5, suggesting moderate upside potential.
Consumer Opinions
Consumers generally appreciate Cirrus Logic, Inc. for its innovative audio solutions but express some concerns over product availability and pricing.
| Positive Reviews | Negative Reviews |
|---|---|
| “Excellent sound quality and reliable performance in their audio chips.” | “Occasionally, product availability is limited, causing delays.” |
| “Strong innovation in audio technology keeps them ahead in the market.” | “Pricing can be on the higher side compared to competitors.” |
| “Good customer support and timely updates on product improvements.” | “Some users experienced compatibility issues with certain devices.” |
Overall, customers praise Cirrus Logic for cutting-edge audio technology and solid support, while noting occasional supply constraints and premium pricing as areas for improvement.
Risk Analysis
Below is a summary of the key risks associated with investing in Cirrus Logic, Inc. (CRUS), highlighting their likelihood and potential impact on the company’s performance.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in semiconductor demand affecting revenue growth | High | High |
| Supply Chain | Disruptions in component supply or manufacturing delays | Medium | High |
| Competitive Risk | Intense competition in audio IC market leading to margin pressure | High | Medium |
| Technology | Rapid technological change requiring continuous innovation | Medium | Medium |
| Regulatory | Changes in trade policies or tariffs impacting costs | Low | Medium |
The most significant risks for Cirrus Logic in 2025 remain volatile semiconductor demand and supply chain challenges, both with high probability and impact. Recent global chip shortages and geopolitical tensions underscore these vulnerabilities. Effective risk management and innovation are critical for mitigating these threats.
Should You Buy Cirrus Logic, Inc.?
Cirrus Logic, Inc. shows solid profitability with a net profit margin of 17.48% in 2025 and a return on invested capital (ROIC) of 14.05% exceeding its weighted average cost of capital (WACC) at 8.66%, which suggests positive value creation. The company maintains a low debt level with a debt-to-equity ratio of 0.07 and a strong current ratio of 6.35, indicating healthy liquidity. Fundamentals have improved year-over-year, with revenue growing by 5.99% and EBITDA margin increasing to 26.2%. The rating is A with robust scores in return on equity and assets, reflecting overall financial strength. This performance might signal a financially sound company with value-generating operations, although valuation multiples indicate a premium price.
Favorable signals
Cirrus Logic, Inc. demonstrates several positive financial indicators for 2025. The income statement evaluation reveals a strong gross margin of 52.53% and an encouraging gross profit growth of 8.73%. Operating expenses have grown in line with revenue at 5.99%, supporting efficient cost management. The EBIT margin stands at a healthy 23.46%, with EBIT growth at 21.94%, reflecting operational strength. The net margin is positive at 17.48% and has grown by 13.91%, complemented by EPS growth of 22.45%. From a ratios perspective, the company exhibits a favorable net margin of 17.48%, ROE at 17.01%, and ROIC at 14.05%, which is notably above the WACC of 8.66%, indicating value creation. Additional strengths include a strong quick ratio of 4.82, low debt-to-equity of 0.07, low debt to assets at 6.18%, and an exceptional interest coverage ratio of 495.45. The fixed asset turnover is also favorable at 6.62.
Unfavorable signals
Despite many positives, certain ratios and financial aspects appear less favorable. The current ratio is unusually high at 6.35, which might suggest inefficient use of current assets. The dividend yield remains at 0%, possibly unattractive for income-focused investors. Price-to-earnings at 15.95 and price-to-book at 2.71 are neutral but do not provide clear valuation advantages. Overall, these unfavorable points are limited but worth noting.
Conclusion
Given the favorable global opinion on both the income statement and financial ratios, combined with a bullish long-term stock trend showing a 51.3% price increase, Cirrus Logic, Inc. might appear promising for long-term investors. The recent slight downward price movement of -4.74% does not overshadow the overall positive fundamentals and buyer dominance at 57.91%, suggesting that the stock could be viewed as maintaining underlying strength. Therefore, this situation might be interpreted as favorable while still warranting cautious monitoring.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Vision Investing With Cirrus Logic (NASDAQ:CRUS) – Seeking Alpha (Dec 12, 2025)
- Quantinno Capital Management LP Purchases 91,719 Shares of Cirrus Logic, Inc. $CRUS – MarketBeat (Dec 12, 2025)
- Are You Looking for a Top Momentum Pick? Why Cirrus Logic (CRUS) is a Great Choice – Yahoo Finance (Dec 10, 2025)
- Is It Too Late To Consider Buying Cirrus Logic, Inc. (NASDAQ:CRUS)? – simplywall.st (Nov 28, 2025)
- Cirrus Logic (CRUS) Receives a Rating Update from a Top Analyst – The Globe and Mail (Dec 11, 2025)
For more information about Cirrus Logic, Inc., please visit the official website: cirrus.com
