One-glance verdict
Within fair range
$57.21 our estimate vs market $25.17
Wall Street consensus: $27.50 (-51.9% lower than our fair-value estimate)
56% below our estimate
Fundamentals snapshot
Wolfspeed, Inc.
WOLF · NYQ · Technology · Semiconductors
Current price
$25.17
52-week range
$8.05 - $80.82
Market cap
$1.31B
Balance sheet
Distressed
-1.82x Concerning
Net debt $707.60M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
0 Risks
1 rewards · 0 risks
View details ↓What this company does
Wolfspeed, Inc.
Wolfspeed makes special materials, like silicon carbide, that are used to create next-generation computer chips designed to handle a lot of electricity without wasting energy. The company is a key part of the supply chain (the network of businesses that create and distribute a product) for things like electric vehicles and AI data centers, selling its chips to the companies that build them. This matters because as the world increasingly relies on these powerful technologies, the demand for Wolfspeed's energy-saving components grows.
How the company got here
Founded in 1987 as Cree Research, the company initially focused on making silicon carbide for commercial use. A major breakthrough was creating the first blue LED, which paved the way for full-color video screens. For many years, LED lighting was its main business, while the science of growing silicon carbide crystals developed in the background. Recognizing a bigger opportunity, the company underwent a major transformation, selling its LED and lighting divisions to focus entirely on silicon carbide technology for semiconductors. In 2021, it officially changed its name from Cree, Inc. to Wolfspeed to reflect this new, focused direction as a powerhouse in advanced semiconductors.
What it actually does
Wolfspeed makes a special type of material called silicon carbide, which is used to create advanced electronic chips. Think of these chips as super-efficient electrical switches that are much better than traditional silicon chips at handling high power and temperatures. This makes them essential for products like electric vehicles (EVs), allowing them to charge faster and drive farther. You would also find their technology inside fast charging stations, 5G cellular equipment, and systems for renewable energy like solar power.
Materials
This is the foundational business for Wolfspeed, where they grow and produce high-purity silicon carbide crystals. These crystals are sliced into thin discs called wafers, which are the base material for building advanced semiconductor chips. Wolfspeed sells these wafers to other chip manufacturers and also uses them for its own products. This segment is critical because controlling the quality of the raw material gives the company a key advantage in the performance of the final chips.
Power Devices
This part of the company takes the silicon carbide wafers from the Materials segment and turns them into powerful electronic components. These components, known as MOSFETs and diodes, act like highly efficient switches or gates for controlling electricity in demanding applications. Companies making electric vehicles, industrial power supplies, and AI data centers buy these devices to make their own products more powerful and energy-efficient. This is the company's largest segment by revenue.
What management is betting on now
Wolfspeed is heavily focused on expanding its manufacturing capacity to meet the surging demand for silicon carbide, especially from the electric vehicle and artificial intelligence industries. They are investing billions in new, highly automated factories, like their Mohawk Valley facility, to produce larger and more advanced wafers, which lowers costs and increases output. The strategy is to be the world's leading supplier of this critical material, securing long-term agreements with major automakers and tech companies. Management believes that as the world shifts to more efficient, electric-powered systems, their silicon carbide technology will become the industry standard.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$-569.00M
FY2025 Q2
$-596.90M
FY2025 Q3
$-362.80M
FY2025 Q4
$-454.40M
FY2026 Q1
$-98.30M
FY2026 Q2
$-72.60M
FY2026 Q3
$-121.60M
FY2026 Q4
$-59.50M
Revenue
$299.80M
Net income
$-265.20M
Diluted EPS
-4.86
Operating cash flow
$-54.40M
Free cash flow
$-59.50M
Fetching…
Sources
Revenue
$150.20M
Net income
$-119.90M
Diluted EPS
-3.05
Operating cash flow
$-83.80M
Free cash flow
$-121.60M
Fetching…
Sources
Revenue
$168.50M
Net income
$-150.60M
Diluted EPS
-5.78
Operating cash flow
$-42.60M
Free cash flow
$-72.60M
Fetching…
Sources
Revenue
$196.80M
Net income
$-643.60M
Diluted EPS
-4.12
Operating cash flow
$5.70M
Free cash flow
$-98.30M
Fetching…
Sources
Revenue
$197.00M
Net income
$-669.30M
Diluted EPS
-4.42
Operating cash flow
$-242.50M
Free cash flow
$-454.40M
Fetching…
Sources
Revenue
$185.40M
Net income
$-285.50M
Diluted EPS
-1.86
Operating cash flow
$-142.10M
Free cash flow
$-362.80M
Fetching…
Sources
Revenue
$180.50M
Net income
$-372.20M
Diluted EPS
-2.88
Operating cash flow
$-195.10M
Free cash flow
$-596.90M
Fetching…
Sources
Revenue
$194.70M
Net income
$-282.20M
Diluted EPS
-2.23
Operating cash flow
$-132.00M
Free cash flow
$-569.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $57.21 vs current price $25.17
Wall Street consensus is the average analyst price target: $27.50 (-51.9% lower than our fair-value estimate).
Our most-likely fair value is $57.21 a share — about 127.3% away from today's price of $25.17, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $707.6M. Interest coverage -1.8x.
Net debt
$707.60M
Interest coverage
-1.82x
Wolfspeed, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
WOLF
BASELINE
Wolfspeed, Inc.
Total debt $1.80B Interest coverage -1.82x This is the baseline the peer rows are being compared against.
Total debt $4.71B Interest coverage 10.59x This peer still has a real interest-payment cushion, while WOLF does not.
Total debt $8.40B Interest coverage 8.80x This peer still has a real interest-payment cushion, while WOLF does not.
Total debt $4.23B Interest coverage 5.87x This peer still has a real interest-payment cushion, while WOLF does not.
Total debt $3.55B Interest coverage 4.74x This peer still has a real interest-payment cushion, while WOLF does not.
Total debt $2.60B Interest coverage 7.13x This peer still has a real interest-payment cushion, while WOLF does not.
What you should know
The case for and against WOLF
1 Reward
0 Risks
Rewards
-
Free cash flow was positive in 3/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-4.32x
P/B
1.19x
P/S
1.97x
EV/EBITDA
-6.31x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
-28.2%
Operating margin
-31.6%
Net margin
0.7%
ROE
1.8%
ROA
-5.8%
Health
Liquidity and balance-sheet strength
Debt / equity
1.93x
Current ratio
6.86x
Quick ratio
5.51x
Total debt
$1.80B
Total cash
$1.09B
Growth
How the business has been compounding
Revenue TTM
$815.30M
Revenue 5Y CAGR
-4.9%
EPS TTM
-11.39
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-203.20M
Free CF TTM
$-253.70M
FCF margin
-31.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—