About CIRRUS LOGIC
Cirrus Logic, Inc., a fabless semiconductor company, provides low-power, high-precision mixed-signal processing solutions in the United States and internationally. It offers portable products, including codecs-chips that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single IC; smart codecs, a codec with digital signal processer; boosted amplifiers; micro-electromechanical systems microphones; haptic drivers; digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that offer enhanced voice quality, voice capture, and audio playback features. The company's audio products are used in smartphones, tablets, wireless headsets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also offers high-performance mixed-signal products, such as haptic driver and sensing solutions, camera controllers, and power-related components used in various industrial and energy applications comprising 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.
CRUS operates in the Manufacturing | Electronic Equipment | headquartered in Austin, Texas | approximately 1,590 employees | led by CEO John Forsyth.
The $6.5B question: What happens when a company this good becomes this expensive?
In the rarefied air of Silicon Valley valuations, CIRRUS LOGIC, INC. sits at a peculiar crossroads. The company that once defined an era now finds itself redefining another — and investors are paying a premium for the privilege of coming along.
At $6.5B in market capitalization, CIRRUS LOGIC, INC. (CRUS) currently ranks #104 in our quantitative model, with a composite score of 78.1/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives CRUS the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 88/100 | 30% | Exceptional |
| Value | 78/100 | 15% | Fair |
| Momentum | 59/100 | 25% | Steady |
| Investment | 32/100 | 10% | Low |
| Stability | 66/100 | 10% | Solid |
| Short Interest | 57/100 | 10% | Normal |
The quality score of 88/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 22.1%
- Net Margin: 23.5%
- Gross Margin: 52.5%
These aren't just good numbers. They're the kind of numbers that make CRUS a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like CRUS."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. CRUS is quality defined.
- Momentum is real. With a momentum score of 59/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 17.1x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
CIRRUS LOGIC, INC. is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, CRUS is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 78.1/100 | Rank: #104 of 3,571 stocks
Sector: Technology
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.