Cirrus Logic, Inc.CRUS · Nasdaq

Results over the years

Fiscal years from SEC filings (10-K).

Why the market may be pricing it low

• The company's own strategy centers on "maintaining leadership in smartphone audio" and "increasing HPMS content in smartphones," revealing heavy dependence on the smartphone market and a concentrated customer base, which investors discount as a durability risk.

  first, maintaining our leadership position in smartphone audio; second, increasing high-performance mixed-signal ("HPMS") content in smartphonesBusiness

• The company explicitly states it pays no dividends and has no plans to, leaving accumulated cash directed only toward discretionary buybacks, which weakens the predictability of shareholder returns.

  We have not paid any dividends on our capital stock. We do not anticipate declaring or paying in the foreseeable future any dividends on our capital stock.MD&A

What could close the gap

• The company authorized a $500 million discretionary buyback program in March 2025; an acceleration of this program or a shift away from the no-dividend policy could ease distrust of capital allocation and trigger a re-rating.

  The Company currently has one active share repurchase authorization: $500 million in share repurchases authorized by the Board of Directors in March 2025.MD&A

How a buyer could still lose (value trap)

• The ~23% operating margin (operating income $472M on revenue $2,050M) rests on a business concentrated in smartphone audio/HPMS; if a key customer's design choices shift, this margin could compress sharply, making today's apparent cheapness justified by a later earnings collapse rather than a bargain.

  Based on the figures below

• With $810M in cash, zero debt, and no dividends, there is no guarantee this cash converts into shareholder value; the buyback program can be modified or suspended at the company's discretion at any time, so the cash could simply sit idle.

  Based on the figures below

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✓ROA up on last year
• ✓Cash flow exceeds net profit
• ✗Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• ✓Gross margin up on last year
• ✓Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

$2.0bn

Operating profit

$460m

Net profit

$414m

Operating cash flow

$557m

Cash

$720m

Debt

$0m

Equity

$2.2bn

Latest twelve months to 2026-09-26; F-score for the fiscal year to 2026-03-28