NasdaqGS:CREE

Stock Analysis Report

Executive Summary

Cree, Inc. provides lighting-class light emitting diode (LED) and semiconductor products for power and radio-frequency (RF) applications in the United States, China, Europe, and internationally.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Cree's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.1%

CREE

-0.8%

US Semiconductor

-0.02%

US Market


1 Year Return

26.2%

CREE

10.2%

US Semiconductor

1.6%

US Market

CREE outperformed the Semiconductor industry which returned 10.2% over the past year.

CREE outperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

CREEIndustryMarket
7 Day-2.1%-0.8%-0.02%
30 Day3.7%5.8%2.7%
90 Day-11.0%12.0%1.4%
1 Year26.2%26.2%12.3%10.2%3.8%1.6%
3 Year103.6%103.6%82.2%71.6%45.2%35.8%
5 Year23.1%23.1%122.9%100.2%61.8%44.1%

Price Volatility Vs. Market

How volatile is Cree's share price compared to the market and industry in the last 5 years?


Simply Wall St News

2 months ago | Simply Wall St

Cree (NASDAQ:CREE) Is Using Debt In A Risky Way

Valuation

Is Cree undervalued based on future cash flows and its price relative to the stock market?

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cree's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Cree's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Cree is loss making, we can't compare its value to the US Semiconductor industry average.

Cree is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Cree, we can't assess if its growth is good value.


Price Based on Value of Assets

Cree is good value based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is Cree expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

90.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cree's revenue is expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).

Cree's earnings are expected to grow significantly at over 20% yearly.

Cree's revenue growth is expected to exceed the United States of America market average.

Cree's earnings growth is expected to exceed the United States of America market average.

Cree's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Cree is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Cree performed over the past 5 years?

-53.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cree does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Cree's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Cree's 1-year growth to the US Semiconductor industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Cree has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Cree has efficiently used its assets last year compared to the US Semiconductor industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Cree improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Cree's financial position?


Financial Position Analysis

Cree is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cree's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Cree's level of debt (23%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0% vs 23% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making Cree has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Cree has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 63% per year.


Next Steps

Dividend

What is Cree's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Cree's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Cree's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Cree has not reported any payouts.

Unable to verify if Cree's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Cree has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Cree's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Cree's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Gregg Lowe (56yo)

2yrs

Tenure

US$13,625,336

Compensation

Mr. Gregg A. Lowe has been the President and Chief Executive Officer at Cree, Inc. since September 27, 2017. Mr. Lowe served as Chief Executive Officer and President at Freescale Semiconductor, Inc. since  ...


CEO Compensation Analysis

Gregg's remuneration is higher than average for companies of similar size in United States of America.

Insufficient data for Gregg to compare compensation growth.


Management Age and Tenure

1.6yrs

Average Tenure

52yo

Average Age

The average tenure for the Cree management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

55yo

Average Age

The tenure for the Cree board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$120,14521 May 19
Duy-Loan Le
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$60.07
BuyUS$128,92016 May 19
Duy-Loan Le
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$64.46

Ownership Breakdown


Management Team

  • John Palmour (58yo)

    Founder & CTO - Wolfspeed

    • Tenure: 0yrs
    • Compensation: US$1.29m
  • Gregg Lowe (56yo)

    President

    • Tenure: 2yrs
    • Compensation: US$13.63m
  • Tyler Gronbach (50yo)

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Brad Kohn (50yo)

    Secretary

    • Tenure: 0yrs
  • Greg Merritt

    Vice President of Marketing & Public Affairs

    • Tenure: 0yrs
  • Thomas Wessel (52yo)

    Senior Vice President of Global Sales and Marketing

    • Tenure: 1.6yrs
  • Claude Demby (55yo)

    Senior VP & GM of LED Products

    • Tenure: 0.8yrs
  • Ty Mitchell (52yo)

    Vice President of Lighting Operations

    • Tenure: 5.8yrs
    • Compensation: US$1.70m
  • David Elien

    Senior Vice President of Lighting

    • Tenure: 0yrs
  • Neill Reynolds (44yo)

    Executive VP & CFO

    • Tenure: 1.1yrs

Board Members

  • Darren Jackson (54yo)

    Chairman of the Board

    • Tenure: 0.9yrs
    • Compensation: US$266.68k
  • Clyde Hosein (60yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$251.68k
  • Tom Werner (59yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$256.68k
  • Gregg Lowe (56yo)

    President

    • Tenure: 2yrs
    • Compensation: US$13.63m
  • John Hodge (50yo)

    Director

    • Tenure: 0.9yrs
  • Duy-Loan Le (56yo)

    Director

    • Tenure: 0.9yrs
  • John Replogle (53yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$251.68k
  • Anne Whitaker (52yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$246.68k

Company Information

Cree, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cree, Inc.
  • Ticker: CREE
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$5.394b
  • Shares outstanding: 106.10m
  • Website: https://www.cree.com

Number of Employees


Location

  • Cree, Inc.
  • 4600 Silicon Drive
  • Durham
  • North Carolina
  • 27703
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CREENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1993
CR6DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1993
0I4QLSE (London Stock Exchange)YesCommon StockGBUSDFeb 1993

Biography

Cree, Inc. provides lighting-class light emitting diode (LED) and semiconductor products for power and radio-frequency (RF) applications in the United States, China, Europe, and internationally. It operate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:11
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.