Shares of Cirrus Logic
How it got here
The audio codec specialist is perhaps best known for its lucrative relationship with Apple
Shares saw some healthy upside on Monday, gaining 5.7%. There are a couple of possible reasons for the jump, including some reinvigorated analyst bullishness on the Mac maker, as Topeka Capital's Brian White was out touting Apple's prospects, saying the company should be measured in "trillions" instead of billions. If Apple crosses the trillion-dollar market-cap threshold, Cirrus would be a clear beneficiary as well.
The broader semiconductor market is also seeing some recovery, with the Semiconductor Industry Association, or SIA, recently saying that global semi sales in April rose 3.4% sequentially to $24.1 billion, the largest gain in the industry since May 2010 on a sequential basis. In dollar terms, the market remains lower than a year ago, but the growth figures are leading to an overall outlook of "cautious optimism," according to SIA CEO Brian Toohey.
How it stacks up
Let's see how Cirrus stacks up with some of its semiconductor peers.
We'll throw in some fundamentals metrics for comparison.
Company |
P/E (TTM) |
Sales Growth (MRQ) |
Net Margin (TTM) |
ROE (TTM) |
---|---|---|---|---|
Cirrus Logic | 23.6 | 21% | 20.6% | 19.5% |
STMicroelectronics |
7.7 | (20.4%) | 0.6% | 8% |
Texas Instruments |
18.1 | (8%) | 13.6% | 16.7% |
Cypress Semiconductor |
28.3 | (20.6%) | 9.8% | 21.2% |
Source: Reuters. TTM = trailing 12 months. MRQ = most recent quarter.
All of these companies are actually Apple suppliers in some form or fashion. STMicroelectronics has long provided the gyroscope and three-axis accelerometer in iPhones, just as TI has always provided the touchscreen controller. Cypress Semiconductor's touchscreen controllers are found in some iPods and MacBook trackpads.
Obviously, some spots are ore lucrative than others, as Cirrus has vastly outperformed the others, thanks to its dedication to Cupertino and the expansion of its relationship.
What's next?
Cirrus should continue to ride Apple's success for the foreseeable future, as iPhone and iPad sales continue to take off.
Add these companies to your Watchlist to get the latest news and analysis.
- Add Cirrus Logic to My Watchlist.
- Add Apple to My Watchlist.
- Add Texas Instruments to My Watchlist.
- Add STMicroelectronics to My Watchlist.
- Add Cypress Semiconductor to My Watchlist.