Wolfspeed (WOLF) AI Stock Analysis

• Market Cap: $384.26M
• Dividend Yield: N/A
• Average Volume (3M): 26.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.13
• Revenue Growth: -10.77%
• EPS Growth: -27.51%
• Country: US
• Employees: 5,013
• Sector: Technology
• Sector Strength: 44
• Industry: Semiconductors
• EPS (TTM): -7.68
• Shares Outstanding: 155,571,120
• 10 Day Avg. Volume: 18,899,824
• 30 Day Avg. Volume: 26,211,247
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.26
• Price to Cash Flow (P/CF): -1.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.46
• Price Target Upside: 157.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

Wolfspeed's overall stock score reflects significant financial and operational challenges, including high leverage, negative cash flow, and bearish technical indicators. While the earnings call and recent CEO appointment suggest some positive strategic shifts, the company must overcome substantial obstacles to improve its financial health and market performance. The stock remains a high-risk investment until tangible improvements in profitability and cash flow are realized.

Positive Factors

EV Revenue Growth

Revenue from EVs grew 92% YoY, with revenue now split 70/30 between automotive and Industrial & Energy, driven by $1.4bn in design ins and $800m in design wins.

Restructuring and Funding

WOLF has access to $2.5bn in funding to support their ongoing restructure, alleviating liquidity concerns.

Negative Factors

Device Market Competition

WOLF continues to face stiff competition in the device market from dominant incumbents ON, STM, and IFX.

Guidance and Revenue Challenges

The company again missed revenue targets for Mohawk Valley, with December revenues of $52 million versus guidance of $60 million.

SiC Market Challenges

There is an oversupply of SiC with increasing competition from China, which presents a key headwind for Wolfspeed.

Wolfspeed Business Overview & Revenue Model

Company Description

Wolfspeed, Inc. provides silicon carbide and gallium nitride (GaN) materials, power devices, and radio frequency (RF) devices based on wide bandgap semiconductor materials and silicon. The company's silicon carbide and GaN materials comprise silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers. It offers silicon carbide materials for customers to manufacture products for RF, power, and other applications. The company's power devices include silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), power modules, and gate driver boards for customers and distributors to use in applications, such as electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. Its RF devices comprise GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company's products are also used in transportation, fast charging, wireless systems, 5G, motor drives, renewable energy and storage, and aerospace and defense applications; and materials products and RF devices are used in military communications, radar, satellite, and telecommunication applications. It serves customers in North America, Asia, and Europe. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was founded in 1987 and is headquartered in Durham, North Carolina.

How the Company Makes Money

Wolfspeed generates revenue primarily through the sale of its semiconductor products, which include silicon carbide (SiC) and gallium nitride (GaN) materials, power devices, and RF devices. These products are sold to a diverse range of industries, including automotive manufacturers for electric vehicles, telecommunications companies for 5G infrastructure, and industrial clients for high-efficiency power management solutions. The company capitalizes on the growing demand for energy-efficient and high-performance semiconductor materials, driven by trends such as electrification, renewable energy adoption, and the expansion of wireless communication networks. Strategic partnerships and long-term supply agreements with key players in these sectors also contribute significantly to Wolfspeed's revenue streams, ensuring a stable and growing customer base.

Wolfspeed Financial Statement Overview

Summary

Wolfspeed is navigating a tough financial landscape characterized by high leverage, significant losses, and cash flow constraints. While gross profits indicate some operational effectiveness, the company faces challenges in achieving profitability and managing its debt levels. Sustained investment and strategic adjustments will be crucial for future financial stability and growth.

Income Statement

Wolfspeed's TTM data shows a challenging financial position with negative net income and EBIT, reflecting ongoing profitability issues. The gross profit margin stands at 12.22%, indicating some level of product profitability, but the net profit margin is deeply negative at -146.13%, highlighting significant losses. Revenue growth is subdued, with a marginal increase from the previous year, suggesting limited top-line expansion.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 17.26, indicating significant leverage and potential financial risk. Return on Equity is negative at -319.47%, due to large losses and low equity. The equity ratio is 4.81%, reflecting a capital structure heavily reliant on debt, which could pose risks in volatile market conditions.

Cash Flow

Wolfspeed shows negative free cash flow, with a deteriorating free cash flow growth rate, driven by substantial capital expenditures. The operating cash flow to net income ratio suggests that cash flow challenges are in line with the company's earnings difficulties. The financials indicate cash flow constraints amid high investment levels.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
776.60M	807.20M	921.90M	746.20M	525.60M	470.70M
	Gross Profit
-49.00M	77.40M	279.50M	249.30M	164.60M	158.50M
	EBIT
-758.60M	-372.00M	-380.60M	-248.10M	-238.40M	-222.60M
	EBITDA
-481.90M	-145.20M	-71.60M	-131.20M	-173.90M	-73.60M
	Net Income Common Stockholders
-978.20M	-864.20M	-329.90M	-295.10M	-341.30M	-197.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
987.86M	2.17B	2.95B	1.20B	1.15B	1.24B
	Total Assets
2.09B	7.98B	6.62B	3.92B	3.45B	3.23B
	Total Debt
0.00	6.29B	4.18B	1.03B	839.10M	798.80M
	Net Debt
-987.86M	5.25B	4.19B	582.20M	460.10M	350.00M
	Total Liabilities
166.12M	7.10B	5.00B	1.48B	1.33B	1.14B
	Stockholders Equity
1.93B	882.10M	1.62B	2.44B	2.12B	2.08B
Cash Flow		Free Cash Flow
-2.77B	-3.01B	-1.10B	-804.80M	-701.90M	-263.30M
	Operating Cash Flow
-702.80M	-725.60M	-142.60M	-154.20M	-125.50M	-29.00M
	Investing Cash Flow
-916.70M	-1.94B	-1.15B	-391.00M	-448.60M	-486.90M
	Financing Cash Flow
1.33B	1.96B	2.60B	615.90M	504.10M	464.30M

Wolfspeed Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WOLF, the sentiment is Negative. The current price of 2.51 is below the 20-day moving average (MA) of 2.98, below the 50-day MA of 4.69, and below the 200-day MA of 9.56, indicating a bearish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 36.91 is Neutral, neither overbought nor oversold. The STOCH value of 62.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WOLF.

Wolfspeed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$9.82B	10.00	-6.63%	3.09%	7.49%	-11.58%
CEVA	58 Neutral	$542.29M	―	-3.31%	―	3.68%	26.36%
SKYT	58 Neutral	$316.55M	―	-12.20%	―	19.39%	78.56%
NVTS	45 Neutral	$346.76M	―	-23.22%	―	4.84%	48.52%
WOLF	44 Neutral	$384.26M	―	-128.47%	―	-10.77%	-27.51%
LASR	44 Neutral	$346.65M	―	-25.82%	―	-5.42%	-40.48%
INDI	42 Neutral	$391.36M	―	-30.69%	―	-2.91%	11.28%

Wolfspeed Corporate Events

Wolfspeed Appoints Robert Feurle as New CEO

On March 27, 2025, Wolfspeed, Inc. announced the appointment of Robert Feurle as the new Chief Executive Officer, effective May 1, 2025. Feurle, a veteran in the semiconductor industry, is expected to drive operational excellence and enhance profitability at Wolfspeed. His extensive experience in managing large business units and strategic initiatives in the semiconductor sector aligns with Wolfspeed’s strategic vision for long-term value creation. This leadership change is anticipated to bolster Wolfspeed’s market position and financial performance, as the company aims to accelerate its path to positive free cash flow and strengthen its balance sheet.