Cirrus Logic, Inc. (CRUS) stock analysis

P/E below its 5-year median

Cirrus Logic's P/E of 15.4 is below its own 5-year median of 18.6.

P/E below the industry

Cirrus Logic's P/E of 15.4 is below the Electronic Components and Accessories median of 34.8.

EV/EBITDA below its 5-year median

Cirrus Logic's EV/EBITDA of 10.5 is below its 5-year median of 12.3.

P/B below the industry

Cirrus Logic's price-to-book of 2.78 is below the Electronic Components and Accessories median of 3.49.

Trading below fair value

The share price of $121.75 is below our fair value estimate of $177.46.

Margin of safety over 20%

The price is 31.4% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 1.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 36.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 9.0% over the last twelve months, against a 5-year average of 13.8% a year.

Growing slower than the industry

Revenue grew 5.1% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance issued

The latest outlook (Second Quarter FY27 Revenue, Aug 5, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 53.1% over the last twelve months, against 53.0% a year earlier.

Return on equity over 15%

Return on equity was 19.5% over the last twelve months and averaged 17.3% over five years.

Return on capital over 10%

Return on invested capital was 26.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Cirrus Logic's return on equity of 19.5% is above the Electronic Components and Accessories median of 4.8%.

Earnings grew over 5 years

Net income grew 13.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 20.2% over the last twelve months, against a 5-year average of 16.2%.

Net margin above the industry

Cirrus Logic's net margin of 20.2% is above the Electronic Components and Accessories median of 2.9%.

No debt

Cirrus Logic has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 452.3 times.

Short-term assets cover short-term debts

Current assets are 6.41 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 11.28; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Cirrus Logic has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.