Cirrus Logic, Inc.
CRUS
Semiconductors & Related Devices
Mkt Cap
$4.22BPE
29.97Debt
-Cash
$277.8MEV
-FCF
$127.8MP/E Ratio
29.97Debt
-Cash
$277.8MEV
-FCF
$127.8MCirrus Logic, Inc., a fabless semiconductor company, develops low-power, high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including 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 digital signal processing; boosted amplifiers; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation. Its audio products are used in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products comprising camera controllers, haptic and sensing solutions, and battery and power ICs for use in legacy industrial and energy applications, such as digital utility meters, power supplies, energy control, energy measurement, and energy exploration. 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.
Sector
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DCF
Discounted Cash Flow Valuation of Cirrus Logic, Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $127.8M | $130.7M | $133.7M | $136.7M | $139.9M | $143.1M | $146.3M | $149.7M | $153.1M | $156.6M | $160.1M | $1.601B |
| DCF | $113.7M | $101.1M | $89.91M | $79.96M | $71.12M | $63.26M | $56.26M | $50.04M | $44.51M | $39.58M | $395.8M | |
| Value | $1.105B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 11%
Earnings Stability 32%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 03-2015 | 03-2016 | 03-2017 | 03-2018 | 03-2019 | 03-2020 | 03-2021 | 03-2022 | 03-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 6% | 11% | 17% | 11% | 7.6% | 12% | 16% | 18% | 9.3% | 8% |
| ROA | 9.5% | 15% | 23% | 19% | 7.4% | 11% | 13% | 17% | 12% | 10% |
| ROE | 7.3% | 14% | 23% | 14% | 7.9% | 13% | 16% | 20% | 11% | 8.2% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +12.35%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.84%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +13.45%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.01%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +13.58%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +0.68%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 03-2015 | 03-2016 | 03-2017 | 03-2018 | 03-2019 | 03-2020 | 03-2021 | 03-2022 | 03-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | - | - | - | - | - | - | - | - | - |
| Debt Equity | - | - | - | - | - | - | - | - | - | - |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 49% | 93% | 100% | 100% | 75% | 49% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is -.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.49.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 03-2016 | 03-2018 | 03-2020 | 03-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 7.2% | 4.4% | 14% | 6.5% | -2% |
| Net Income | 5.2% | 1.8% | 3.5% | -46% | -4.1% |
| Stockholders Equity | 9.8% | 7.4% | 10% | 3.7% | -1.5% |
| FCF | 15% | 2.9% | 2.8% | 210% | 9.3% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +4.37%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -2.01%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +1.75%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -4.07%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +7.38%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -1.51%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +2.93%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +9.28%.