Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, audio chip specialist Cirrus Logic
With that in mind, let's take a closer look at Cirrus' business and see what CAPS investors are saying about the stock right now.
Cirrus facts
| Headquarters (founded) | Austin, Texas (1984) |
| Market Cap | $988.4 million |
| Industry | Semiconductors |
| Trailing-12-Month Revenue | $369.6 million |
| Management |
CEO Dr. Jason Rhode (since 2007) CFO Thurman Case (since 2007) |
| Return on Equity (average, past 3 years) | 27.8% |
| Cash/Debt | $196.6 million / $0 |
| Competitors |
Linear Technology
STMicroelectronics
Texas Instruments |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 560 members who have rated Cirrus believe the stock will outperform the S&P 500 going forward. These bulls include troym72 and RallyCry.
A couple of months ago , troym72 tapped Cirrus as a timely bargain opportunity:
They are a solid company with good fundamentals that took a pretty big hit recently. This stock is going to outperform for at least the next year. Analyst consensus 52wk price is almost double its current price.
Over the next five years, Cirrus is even expected to grow its bottom line at a brisk rate of 20% annually. That's faster than listed competitors Linear Tech (9%), STMicro (18%), and Texas Instruments (10%).
Early last month, CAPS member RallyCry elaborated on the bull case:
Cirrus is expected to earn around $1.20 in 2012 and $1.55 in 2013. ... They got punished for missing earnings in the Mar '11 quarter. ... However, the balance sheet is very strong and my estimates are conservative enough to allow for the occasional miss. My target over the next 12-18 months applies a modest multiple of 15 x 2013 consensus earnings of $1.55 -10% or $1.39 a share = $20.85. Add in $2.73 a share in cash and we arrive at a price target of $23.58 or 31.25% above market prices of $16.21.
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