Valens Research Weekly Equity Idea Highlight for September 5, 2018 – Cirrus Logic, Inc.

This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.

Cirrus’ strong management alignment, favorable fundamentals, smart strategic decisions, and growing management optimism are inconsistent with pessimistic market valuations, pointing to equity upside

CRUS has done an excellent job maintaining and improving their business over the past eight years as they have grown in both the Apple and Android ecosystem, using their premium offerings to maintain strong profitability. However, the market is expecting both their ability to drive growth in market share, and profitability sustainability, to severely erode going forward, with UAFRS-based (Uniform) ROA falling by half and growth slowing too.