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Cirrus Logic powers the soundscape of modern life, embedding its precision audio chips in millions of devices worldwide. Its cutting-edge mixed-signal processing solutions define audio quality in smartphones, AR/VR headsets, and automotive systems. Renowned for innovation and integration, Cirrus Logic shapes user experiences with advanced noise cancellation and high-fidelity sound. As the semiconductor landscape evolves, I question whether Cirrus Logic’s fundamentals continue to support its premium valuation and growth trajectory.
Table of contents
Business Model & Company Overview
Cirrus Logic, Inc. is a fabless semiconductor leader founded in 1984 and headquartered in Austin, Texas. It commands a dominant position in mixed-signal processing solutions, integrating ADCs, DACs, and digital signal processors into a cohesive audio ecosystem. Its products power smartphones, tablets, AR/VR devices, and automotive systems, shaping the sound experience across diverse consumer and industrial markets.
The company’s revenue engine balances hardware ICs with software-driven enhancements like its SoundClear technology. Cirrus Logic drives growth through global reach in the Americas, Europe, and Asia, leveraging direct and distributor sales channels. Its competitive advantage lies in high-precision, low-power innovation that fortifies its economic moat and influences the future of audio semiconductor design.
Financial Performance & Fundamental Metrics
I analyze Cirrus Logic, Inc.’s income statement, key financial ratios, and dividend payout policy to reveal its core strengths and risks in 2026.
Income Statement
The table below summarizes Cirrus Logic, Inc.’s key income statement figures for fiscal years 2021 through 2025 in USD.
| 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 | 948K | 898K | 915K | 898K |
| 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 |
Income Statement Evolution
From 2021 to 2025, Cirrus Logic’s revenue rose 38%, showing consistent growth. Net income expanded 53%, outpacing revenue with improved margins. Gross margin stabilized around 52.5%, while EBIT margin climbed to 23.5%, signaling efficiency gains. Operating expenses grew proportionally with revenue, supporting margin expansion and profitability across the period.
Is the Income Statement Favorable?
The 2025 income statement reveals solid fundamentals. Revenue increased 6% year-over-year, with gross profit growing nearly 9%. EBIT surged 22%, and net margin improved nearly 14%, reflecting operational leverage. Interest expense remains negligible at 0.05% of revenue. Overall, 93% of income metrics score favorable, indicating strong profitability and cost control in the latest fiscal year.
Financial Ratios
Presented below are key financial ratios for Cirrus Logic, Inc. from 2021 to 2025, providing insight into profitability, leverage, liquidity, and valuation trends:
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 16% | 18% | 9% | 15% | 17% |
| ROE | 16% | 20% | 11% | 15% | 17% |
| ROIC | 13% | 17% | 9% | 13% | 14% |
| P/E | 23 | 15 | 34 | 18 | 16 |
| 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 | 0.11 | 0.09 | 0.09 | 0.07 |
| Debt-to-Assets | 7.8% | 8.4% | 6.8% | 7.0% | 6.2% |
| Interest Coverage | 224 | 386 | 277 | 375 | 457 |
| 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% |
Evolution of Financial Ratios
Return on Equity (ROE) has steadily improved from 10.66% in 2023 to 17.01% in 2025, signaling enhanced profitability. The Current Ratio increased significantly, reaching 6.35 in 2025, indicating growing liquidity but potentially excessive short-term assets. Debt-to-Equity Ratio declined slightly to 0.07, reflecting stable and conservative leverage.
Are the Financial Ratios Favorable?
Profitability metrics such as net margin (17.48%) and ROE (17.01%) are favorable, outperforming typical sector averages. Liquidity shows mixed signals: the quick ratio is strong at 4.82, but the high current ratio at 6.35 raises concerns about asset efficiency. Leverage remains low and favorable, with a debt-to-equity ratio of 0.07. Market valuation ratios like P/E (15.95) and P/B (2.71) are neutral, while the zero dividend yield is unfavorable. Overall, the financial ratios present a generally favorable profile.
Shareholder Return Policy
Cirrus Logic, Inc. does not pay dividends, reflecting its focus on reinvesting earnings to support growth and innovation. The company maintains strong free cash flow and robust liquidity, enabling potential share buybacks, although no formal programs are reported.
This approach aligns with a long-term value creation strategy, prioritizing operational strength and capital allocation over immediate shareholder payouts. However, the absence of dividends requires investors to trust management’s reinvestment decisions to sustain growth and shareholder returns.
Score analysis
The following radar chart presents Cirrus Logic, Inc.’s key financial scores for a comprehensive performance overview:
Cirrus Logic scores favorably across most metrics. The discounted cash flow and return on equity each score 4, signaling solid value and profitability. Return on assets is very favorable at 5. Debt-to-equity, price-to-earnings, and price-to-book scores are moderate at 3, indicating balanced leverage and valuation metrics.
Analysis of the company’s bankruptcy risk
Cirrus Logic’s Altman Z-Score firmly places it in the safe zone, indicating a very low bankruptcy risk:
Is the company in good financial health?
The Piotroski Score diagram illustrates Cirrus Logic’s financial strength and operational efficiency:
With a Piotroski Score of 7, Cirrus Logic demonstrates strong financial health. This score reflects robust profitability, solid leverage management, and efficient asset use, signaling a company well-positioned for stability.
Competitive Landscape & Sector Positioning
This section analyzes Cirrus Logic’s strategic positioning, revenue segments, key products, competitors, and competitive advantages. I will evaluate whether Cirrus Logic holds a distinct competitive advantage within the semiconductor industry.
Strategic Positioning
Cirrus Logic concentrates on portable audio and high-performance mixed-signal products, generating over $1.9B in 2025 revenue. Its geographic exposure heavily favors China, with $1.13B sales, while the U.S. remains a minor contributor at $16M.
Revenue by Segment
This pie chart illustrates Cirrus Logic, Inc.’s revenue distribution by product segment for the fiscal year 2025, highlighting the company’s core business drivers.
In 2025, Portable Audio Products lead with $1.14B, showing steady growth over recent years. High-Performance Mixed Signal Products contribute $759M, reflecting a solid secondary pillar. The shift from Non-Portable Audio to High-Performance Mixed Signal marks strategic focus. The Portable segment’s resilience underscores Cirrus Logic’s strength in consumer audio markets, though reliance on two segments suggests moderate concentration risk.
Key Products & Brands
The following table outlines Cirrus Logic’s main product lines and their descriptions:
| Product | Description |
|---|---|
| Portable Audio Products | Codecs integrating ADCs and DACs, smart codecs with DSP, boosted amplifiers, and SoundClear tech. Used in smartphones, tablets, laptops, AR/VR, headsets, and automotive systems. |
| High-Performance Mixed Signal Products | Includes haptic drivers, camera controllers, power conversion ICs, fast-charging ICs for industrial and energy applications like digital meters and power supplies. |
Cirrus Logic’s portfolio focuses on advanced audio and mixed-signal semiconductor solutions. Portable audio products dominate revenue, reflecting strong demand in consumer electronics. High-performance mixed-signal products support industrial and energy sectors, diversifying its market exposure.
Main Competitors
There are 38 competitors in the sector; the table below lists the top 10 leaders by market capitalization:
| Competitor | Market Cap. |
|---|---|
| NVIDIA Corporation | 4.6T |
| Broadcom Inc. | 1.6T |
| Taiwan Semiconductor Manufacturing Company Limited | 1.6T |
| ASML Holding N.V. | 415B |
| Advanced Micro Devices, Inc. | 363B |
| Micron Technology, Inc. | 353B |
| Lam Research Corporation | 232B |
| Applied Materials, Inc. | 214B |
| QUALCOMM Incorporated | 185B |
| Intel Corporation | 173B |
Cirrus Logic, Inc. ranks 30th among 38 competitors with a market cap just 0.15% of NVIDIA’s, the sector leader. It sits below both the average market cap of the top 10 (975B) and the sector median (31B). The company maintains an 8.73% market cap gap to its nearest competitor above, highlighting a moderate distance within its competitive set.
Comparisons with competitors
Check out how we compare the company to its competitors:
Does CRUS have a competitive advantage?
Cirrus Logic demonstrates a clear competitive advantage, evidenced by a very favorable moat and a ROIC 5.1% above WACC. Its growing ROIC trend confirms efficient capital use and sustained value creation.
Looking ahead, Cirrus Logic’s expanding product portfolio in audio and mixed-signal processing, alongside penetration in diverse markets like smartphones, AR/VR, and automotive systems, supports continued growth opportunities.
SWOT Analysis
This SWOT analysis highlights Cirrus Logic’s core strategic factors shaping its competitive stance and growth potential.
Strengths
- strong gross margin at 52.5%
- growing ROIC well above WACC
- diversified product portfolio addressing multiple markets
Weaknesses
- zero dividend yield limits income appeal
- high current ratio signals potential capital inefficiency
- moderate valuation multiples (PE 16, PB 2.7)
Opportunities
- expanding demand in AR/VR and automotive audio sectors
- growing geographic exposure in Asia
- leveraging SoundClear technology for differentiation
Threats
- intense semiconductor industry competition
- geopolitical risks in China and Asia markets
- supply chain disruptions impacting production
Cirrus Logic demonstrates a robust financial base and sustainable competitive advantages. Strategic focus should target operational efficiency and risk mitigation to capitalize on emerging market opportunities.
Stock Price Action Analysis
The weekly stock chart of Cirrus Logic, Inc. (CRUS) displays recent price movements and volatility patterns over the last 100 weeks:
Trend Analysis
Over the past 100 weeks, CRUS stock price rose 56.96%, indicating a strong bullish trend with accelerating momentum. The price moved from a low of 82.02 to a high of 145.69, reflecting significant upside potential amid moderate volatility (std dev 14.56). Recent 11-week gains of 17.82% confirm continued upward slope.
Volume Analysis
Trading volume over the last three months shows increasing activity, with buyer-driven dominance at 65.53%. Buyers outpaced sellers by a wide margin (19.2M vs. 10.1M shares), signaling robust investor interest and positive market participation in this period.
Target Prices
Analysts set a confident target consensus for Cirrus Logic, Inc., reflecting positive growth expectations.
| Target Low | Target High | Consensus |
|---|---|---|
| 110 | 163 | 144.5 |
The target range from 110 to 163 shows a strong upside potential. The consensus at 144.5 indicates broad analyst optimism.
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Analyst & Consumer Opinions
This section examines the latest analyst ratings and consumer feedback regarding Cirrus Logic, Inc. (CRUS).
Stock Grades
The following table presents the latest verified analyst grades for Cirrus Logic, Inc., showing consistent sentiment across firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Stifel | Maintain | Buy | 2026-02-04 |
| Benchmark | Maintain | Buy | 2026-02-04 |
| Barclays | Maintain | Equal Weight | 2026-02-04 |
| Benchmark | Maintain | Buy | 2025-11-05 |
| Barclays | Maintain | Equal Weight | 2025-11-05 |
| Keybanc | Maintain | Overweight | 2025-11-05 |
| Stifel | Maintain | Buy | 2025-11-05 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Stifel | Maintain | Buy | 2025-10-17 |
| Stifel | Maintain | Buy | 2025-09-12 |
Analyst consensus remains predominantly positive, with multiple “Buy” ratings and no recent downgrades. The presence of “Equal Weight” and “Overweight” grades reflects a cautious but generally favorable outlook.
Consumer Opinions
Cirrus Logic, Inc. commands mixed reactions from its user base, reflecting both strong product appeal and areas needing improvement.
| Positive Reviews | Negative Reviews |
|---|---|
| High-quality audio chips deliver clear, rich sound. | Occasional delays in product availability frustrate buyers. |
| Consistent performance in noise-cancellation technology. | Customer service response times can be slow during peak periods. |
| Strong integration with leading smartphone brands. | Pricing on some components feels premium compared to competitors. |
Overall, consumers praise Cirrus Logic’s superior audio technology and brand partnerships. However, supply chain issues and customer support responsiveness remain notable challenges.
Risk Analysis
Below is a summary of key risks facing Cirrus Logic, Inc. and their assessed probability and impact:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Semiconductor sector beta of 1.14 indicates sensitivity to tech market swings | Medium | Medium |
| Liquidity Risk | Exceptionally high current ratio (6.35) suggests inefficient asset use, potential cash drag | Low | Low |
| Dividend Policy | Absence of dividend yield may deter income-focused investors | Medium | Low |
| Financial Leverage | Very low debt-to-equity (0.07) mitigates solvency risks but limits tax shield benefits | Low | Low |
| Valuation Risk | Neutral P/E multiple (15.95) and P/B (2.71) may cap upside in a market re-rating | Medium | Medium |
| Competitive Tech | Rapid innovation in semiconductors demands continuous R&D investment to maintain moat | High | High |
| Supply Chain | Global semiconductor supply disruptions can impact production and delivery | Medium | High |
The most significant risks are the intense competition requiring ongoing innovation and supply chain instability, both common in semiconductors. Cirrus Logic’s safe Altman Z-score and strong Piotroski score confirm financial resilience despite market cyclicality. However, high liquidity ratios warn of capital inefficiency, a red flag to monitor.
Should You Buy Cirrus Logic, Inc.?
Cirrus Logic appears to be a robust value creator with a very favorable moat, indicated by growing ROIC surpassing WACC. While leverage metrics suggest moderate risk, the company’s strong profitability and an overall A rating suggest a solid financial profile worth analytical consideration.
Strength & Efficiency Pillars
Cirrus Logic, Inc. demonstrates robust profitability with a net margin of 17.48% and a return on equity of 17.01%. Its return on invested capital (ROIC) stands at 14.2%, comfortably above the weighted average cost of capital (WACC) at 9.08%, confirming the company as a clear value creator. Financial health is solid, evidenced by a strong Altman Z-score of 15.74—well within the safe zone—and a Piotroski score of 7, signaling strong fundamentals. This mix underscores Cirrus Logic’s sustainable competitive advantage and growing profitability.
Weaknesses and Drawbacks
Despite strengths, some metrics raise caution. The current ratio is an unusually high 6.35, flagged as unfavorable, which may suggest inefficient capital deployment or excess liquidity. Valuation metrics are moderate but not compelling, with a P/E of 15.95 and P/B of 2.71, indicating neither a deep value nor a growth premium. The absence of dividends (0% yield) could deter income-focused investors. Overall, leverage is low (debt-to-equity 0.07), but the elevated current ratio remains a red flag for operational efficiency.
Our Verdict about Cirrus Logic, Inc.
The long-term fundamental profile of Cirrus Logic is favorable, supported by strong profitability and financial health. Both its overall and recent price trends are bullish, with buyer dominance at 65.53% in the latest period, suggesting sustained market confidence. The profile may appear attractive for long-term exposure, especially given its value creation and accelerating growth. However, the unusual liquidity ratio and moderate valuation advise prudent monitoring for operational efficiency improvements.
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or other professional advice. Investing in financial markets involves a significant risk of loss, and past performance is not indicative of future results.
Additional Resources
- Cirrus Logic’s Record Earnings Hide The Real Story (NASDAQ:CRUS) – Seeking Alpha (Feb 05, 2026)
- Cirrus Logic, Inc. $CRUS Stake Trimmed by Mirae Asset Global Investments Co. Ltd. – MarketBeat (Feb 05, 2026)
- Cirrus Logic’s Q3 Earnings Loom: Is a Beat in the Offing for CRUS? – Yahoo Finance (Feb 02, 2026)
- Analysts Have Conflicting Sentiments on These Technology Companies: Cirrus Logic (CRUS), Advanced Micro Devices (AMD) and Teradyne (TER) – The Globe and Mail (Feb 05, 2026)
- Cirrus Logic: Fiscal Q3 Earnings Snapshot – KTEN (Feb 03, 2026)
For more information about Cirrus Logic, Inc., please visit the official website: cirrus.com
