Cirrus Logic Inc (CRUS, Financial), a prominent player in the semiconductor industry, has recently witnessed a significant uptick in its stock performance. With a market capitalization of $4.85 billion, the company's stock price has soared to $89.86. Over the past week, investors have seen a robust 16.40% gain, while the last three months have been even more impressive, with a 23.83% increase. This growth trajectory suggests a strong market confidence in Cirrus Logic's prospects. According to the GF Value, the stock is currently Fairly Valued at $88.44, aligning closely with its current price. This is a shift from three months ago when the stock was considered Modestly Undervalued with a GF Value of $95.18.
Introduction to Cirrus Logic Inc
Cirrus Logic Inc specializes in providing integrated circuits for audio and voice signal processing applications. The company's product portfolio is divided into two main categories: portable audio products and non-portable audio and other products. These offerings cater to a diverse range of markets, including mobile devices, smart homes, automotive, energy, and industrial sectors. Cirrus Logic has a global footprint, with nearly half of its revenue generated in China, complemented by significant contributions from the United States, Europe, South Korea, and other regions worldwide. 
Assessing Cirrus Logic's Profitability
Cirrus Logic's financial health is robust, as evidenced by its high Profitability Rank of 9/10. The company's operating margin stands at an impressive 18.25%, outperforming 81.12% of its industry peers. Its return on equity (ROE) is 10.31%, surpassing 67.81% of competitors, while the return on assets (ROA) at 8.30% is higher than 78.51% of the industry. Furthermore, Cirrus Logic's return on invested capital (ROIC) is a commendable 15.23%, which is better than 80.35% of similar companies. This consistent profitability over the past decade underscores the company's financial stability and efficiency. 
Growth Prospects of Cirrus Logic
Cirrus Logic's growth narrative is equally compelling, with a Growth Rank of 9/10. The company has achieved a 16.10% 3-Year Revenue Growth Rate per Share, outpacing 60.21% of its industry counterparts. Over a 5-year period, the revenue growth rate per share stands at 9.60%, which is better than 58.24% of the industry. Despite a projected slight decline in total revenue growth rate over the next 3 to 5 years at -1.20%, Cirrus Logic's 3-Year EPS without NRI Growth Rate is a healthy 12.90%, and its 5-Year EPS without NRI Growth Rate is an impressive 21.00%. The company's estimated EPS Growth Rate for the next 3 to 5 years is 2.00%, indicating a cautious but positive outlook. 
Key Shareholders in Cirrus Logic
Cirrus Logic's shareholder base includes notable investors such as Chuck Royce (Trades, Portfolio), who holds 613,986 shares, representing a 1.14% share percentage. Jim Simons (Trades, Portfolio) follows with 213,320 shares, accounting for 0.4% of the shares, while Jeremy Grantham (Trades, Portfolio) holds 181,640 shares, or 0.34%. These significant holdings by respected investors reflect confidence in the company's long-term value proposition.
Competitive Landscape
When compared to its closest competitors, Cirrus Logic maintains a competitive edge. Synaptics Inc (SYNA, Financial) has a market cap of $4.24 billion, Wolfspeed Inc (WOLF, Financial) is valued at $3.34 billion, and Power Integrations Inc (POWI, Financial) stands at $4.27 billion. Cirrus Logic's market cap of $4.85 billion positions it as a leader within this peer group, suggesting a strong market presence and investor trust.
Conclusion
In summary, Cirrus Logic Inc's recent stock performance and fair valuation reflect a company that is well-positioned within the semiconductor industry. Its impressive profitability metrics and growth potential, combined with the backing of significant shareholders, paint a picture of a company with solid fundamentals and promising prospects. As investors continue to monitor its trajectory, Cirrus Logic's strategic positioning and financial health will be key factors in sustaining its market performance against its competitors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
