Fact based stock research
Wolfspeed (NasdaqGS:CREE)
US9778521024
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Wolfspeed stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 7 (worse than 93% compared with investment alternatives), Wolfspeed (Semiconductors, USA) shares have lower financial characteristics compared with similar stocks. Shares of Wolfspeed are low in value (priced high) with a consolidated Value Rank of 41 (worse than 59% of alternatives), show below-average growth (Growth Rank of 13), and are riskily financed (Safety Rank of 29), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 7, is a sell recommendation based on Wolfspeed's financial characteristics. As the company Wolfspeed's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 41), low growth (Obermatt Growth Rank of 13), and risky financing practices (Obermatt Safety Rank of 29), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Semiconductors |
| Index | Electromobility, NASDAQ, S&P MIDCAP |
| Size class | Medium |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Wolfspeed
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 2 |
|
23 |
|
19 |
|
41 |
|
| GROWTH | ||||||||
| GROWTH | 16 |
|
83 |
|
21 |
|
13 |
|
| SAFETY | ||||||||
| SAFETY | 9 |
|
29 |
|
33 |
|
29 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
12 |
|
3 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
11 |
|
4 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 7 (worse than 93% compared with investment alternatives), Wolfspeed (Semiconductors, USA) shares have lower financial characteristics compared with similar stocks. Shares of Wolfspeed are low in value (priced high) with a consolidated Value Rank of 41 (worse than 59% of alternatives), show below-average growth (Growth Rank of 13), and are riskily financed (Safety Rank of 29), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 7, is a sell recommendation based on Wolfspeed's financial characteristics. As the company Wolfspeed's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 41), low growth (Obermatt Growth Rank of 13), and risky financing practices (Obermatt Safety Rank of 29), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 2 |
|
23 |
|
19 |
|
41 |
|
| GROWTH | ||||||||
| GROWTH | 16 |
|
83 |
|
21 |
|
13 |
|
| SAFETY | ||||||||
| SAFETY | 9 |
|
29 |
|
33 |
|
29 |
|
| COMBINED | ||||||||
| COMBINED | 2 |
|
31 |
|
7 |
|
7 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 41 (worse than 59% compared with alternatives), Wolfspeed shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Wolfspeed. Price-to-Sales (P/S) is 75, which means that the stock price compared with what market professionals expect for future sales is lower than 75% of comparable companies, indicating a good value concerning to Wolfspeed's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 1, meaning that dividends are expected to be lower than for 99% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 53% of alternatives (only 47% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 70% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 41, is a hold recommendation based on Wolfspeed's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Wolfspeed could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Wolfspeed looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 9 |
|
11 |
|
31 |
|
75 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 4 |
|
1 |
|
30 |
|
30 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 37 |
|
48 |
|
29 |
|
47 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 2 |
|
23 |
|
19 |
|
41 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 13 (better than 13% compared with alternatives), Wolfspeed shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Wolfspeed. While Sales Growth ranks at 98, professionals currently expect the company to grow more than 98% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 27, which means that, currently, professionals expect the company to grow its profits less than 73% of its competitors, and Capital Growth has a low rank of 1. Historic stock returns were also below average with a current Stock Returns rank of 5 which means that the stock returns have recently been below 95% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 13, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 1 |
|
96 |
|
92 |
|
98 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 17 |
|
28 |
|
20 |
|
27 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
98 |
|
9 |
|
1 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 57 |
|
33 |
|
11 |
|
5 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 16 |
|
83 |
|
21 |
|
13 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 29 (better than 29% compared with alternatives), the company Wolfspeed has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Wolfspeed is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Wolfspeed and the other two below average. Refinancing is at 99, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 99% of its competitors. But Leverage is high with a rank of 4, meaning the company has an above-average debt-to-equity ratio. It has more debt than 96% of its competitors. Liquidity is also on the riskier side with a rank of 25, meaning the company generates less profit to service its debt than 75% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 29 (worse than 71% compared with alternatives), Wolfspeed has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Wolfspeed are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Wolfspeed and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 45 |
|
48 |
|
4 |
|
4 |
|
| REFINANCING | ||||||||
| REFINANCING | 20 |
|
33 |
|
93 |
|
99 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 1 |
|
24 |
|
25 |
|
25 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 9 |
|
29 |
|
33 |
|
29 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
1 |
|
16 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
57 |
|
46 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
68 |
|
15 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
20 |
|
18 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
12 |
|
3 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Wolfspeed from November 14, 2024.
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