NasdaqGS:CREE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


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

Stable Share Price: CREE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: CREE's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

25.3%

CREE

1.9%

US Semiconductor

1.8%

US Market


1 Year Return

99.7%

CREE

46.2%

US Semiconductor

20.4%

US Market

Return vs Industry: CREE exceeded the US Semiconductor industry which returned 44.6% over the past year.

Return vs Market: CREE exceeded the US Market which returned 19% over the past year.


Shareholder returns

CREEIndustryMarket
7 Day25.3%1.9%1.8%
30 Day23.7%7.4%6.0%
90 Day43.2%12.9%6.8%
1 Year99.7%99.7%48.9%46.2%23.2%20.4%
3 Year146.0%146.0%83.6%74.0%47.4%37.6%
5 Year222.5%222.5%251.2%217.9%91.9%70.8%

Long-Term 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

Valuation

Is Cree undervalued compared to its fair value and its price relative to the market?

25.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CREE ($89.75) is trading below our estimate of fair value ($120.19)

Significantly Below Fair Value: CREE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CREE is unprofitable, so we can't compare its PE Ratio to the US Semiconductor industry average.

PE vs Market: CREE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CREE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CREE is overvalued based on its PB Ratio (5.2x) compared to the US Semiconductor industry average (3.4x).


Next Steps

Future Growth

How is Cree forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

74.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CREE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CREE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CREE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CREE's revenue (23.8% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: CREE's revenue (23.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CREE is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Cree performed over the past 5 years?

-29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CREE is currently unprofitable.

Growing Profit Margin: CREE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CREE is unprofitable, and losses have increased over the past 5 years at a rate of 29.4% per year.

Accelerating Growth: Unable to compare CREE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CREE is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (22.8%).


Return on Equity

High ROE: CREE has a negative Return on Equity (-17.59%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cree's financial position?


Financial Position Analysis

Short Term Liabilities: CREE's short term assets ($1.5B) exceed its short term liabilities ($343.4M).

Long Term Liabilities: CREE's short term assets ($1.5B) exceed its long term liabilities ($864.8M).


Debt to Equity History and Analysis

Debt Level: CREE's debt to equity ratio (41.4%) is considered high.

Reducing Debt: CREE's debt to equity ratio has increased from 8.7% to 41.4% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: CREE has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CREE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CREE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CREE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CREE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CREE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CREE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Gregg Lowe (57 yo)

3.17yrs

Tenure

US$6,778,359

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 NXP USA, Inc. since June 05, 2012 un...


CEO Compensation Analysis

Compensation vs Market: Gregg's total compensation ($USD6.78M) is below average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Gregg's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gregg Lowe
President3.17yrsUS$6.78m0.25%
$ 24.7m
Neill Reynolds
Executive VP & CFO2.25yrsUS$5.08m0.018%
$ 1.8m
John Palmour
Founder & CTO - Wolfspeedno dataUS$1.29mno data
Tyler Gronbach
Vice President of Investor Relationsno datano datano data
Greg Merritt
Vice President of Marketing & Public Affairsno datano datano data
David Elien
Senior Vice President of Lightingno datano datano data
Thomas Wessel
Senior Vice President of Global Sales and Marketing2.75yrsno datano data
Claude Demby
Senior VP & GM of LED Products1.92yrsno datano data
Rick McFarland
Senior Vice President of Global Operationsno datano datano data
Bradley Kohn
Secretaryno datano datano data
Tyrone Mitchell
Vice President of Lighting Operations6.92yrsUS$1.70mno data
Jay Cameron
VP & GM of Wolfspeed Powerno datano datano data

2.8yrs

Average Tenure

53yo

Average Age

Experienced Management: CREE's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregg Lowe
President3.17yrsUS$6.78m0.25%
$ 24.7m
Darren Jackson
Independent Chairman of the Board2.08yrsUS$265.61k0.027%
$ 2.6m
Glenda Dorchak
Independent Director0.83yrUS$224.21kno data
Clyde Hosein
Independent Director14.92yrsUS$240.61k0.054%
$ 5.3m
Thomas Werner
Independent Director14.67yrsUS$230.61k0.062%
$ 6.2m
Duy-Loan Le
Independent Director2.08yrsUS$220.61k0.0097%
$ 960.6k
John Replogle
Independent Director6.83yrsUS$230.61k0.055%
$ 5.4m
John Hodge
Independent Director2.08yrsUS$225.61k0.0056%
$ 554.6k
Anne Whitaker
Independent Director6.92yrsUS$220.61k0.0078%
$ 773.4k

3.2yrs

Average Tenure

57yo

Average Age

Experienced Board: CREE's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CREE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

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$9.903b
  • Shares outstanding: 110.34m
  • 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
CR6XTRA (XETRA Trading Platform)YesCommon StockDEEURFeb 1993
0I4QLSE (London Stock Exchange)YesCommon StockGBUSDFeb 1993
CREE *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 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 Analysis2020/11/24 23:47
End of Day Share Price2020/11/24 00:00
Earnings2020/09/27
Annual Earnings2020/06/28


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.