WOLFWOLF
US • —
$48.25
P/E
2.05
PEG
—
FCF Yield
—
Rev Growth YoY
-6.4% YoY
Gross Margin
-16.2%
Health Score
1/10
D/E Ratio
7.00
Confidence
LOW
Business Snapshot
Wolfspeed operates as a semiconductor company focused on silicon carbide (SiC) materials and power devices for applications in electric vehicles, industrial power supplies, and renewable energy. The company competes in the rapidly growing wide-bandgap semiconductor market, positioning itself as a leading supplier of SiC wafers and chips against larger players like Infineon and STMicroelectronics. With a market capitalisation that is not specified in the data and a TTM net income figure that is unavailable, the company's financial scale is difficult to assess from the provided information. A defining characteristic of Wolfspeed is its high net margin of -72.9%, indicating the company is currently incurring significant losses relative to its revenue base.
Financial Health
The company's net margin of -72.9% signals severe unprofitability, with the gross margin flagged by a data quality warning, noting a figure of -16.2% may be distorted or reflect a data error. The balance sheet is deeply distressed, with a debt/equity ratio of 7.0x, indicating very high leverage, and a current ratio of 0.36x, which points to acute short-term liquidity risk as current assets cover less than half of current liabilities...
Risk Assessment
- EARNINGS QUALITY — The company beat earnings estimates in only 2 of the last 4 quarters, reflecting mixed guidance credibility.
- REVENUE DECELERATION — Revenue growth of -6.4% YoY confirms the top line is contracting, not growing.
- DEBT / LIQUIDITY — Debt/equity of 7.0x indicates very high leverage, while a current ratio of 0.36x highlights severe short-term liquidity risk.
- FCF / CASH BURN — Free cash flow is unavailable in the data, but the net margin of -72.9% suggests significant cash consumption relative to operations.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — No DCF estimates are available, meaning no intrinsic value benchmark exists to assess over- or undervaluation....
The company's net margin of -72.9% signals severe unprofitability, with the gross margin flagged by a data quality warning, noting a figure of -16.2% may be distorted or reflect a data error. The balance sheet is deeply distressed, with a debt/equity ratio of 7.0x, indicating very high leverage, and a current ratio of 0.36x, which points to acute short-term liquidity risk as current assets cover less than half of current liabilities. Return on equity stands at an extraordinary 96.2%, but this figure is heavily distorted by negative shareholder equity rather than operational excellence. Free cash flow figures are not provided, preventing any assessment of the company's ability to self-fund operations. Overall, the financial health is precarious, with elevated leverage and poor liquidity posing substantial risks for equity holders.
- EARNINGS QUALITY — The company beat earnings estimates in only 2 of the last 4 quarters, reflecting mixed guidance credibility. - REVENUE DECELERATION — Revenue growth of -6.4% YoY confirms the top line is contracting, not growing. - DEBT / LIQUIDITY — Debt/equity of 7.0x indicates very high leverage, while a current ratio of 0.36x highlights severe short-term liquidity risk. - FCF / CASH BURN — Free cash flow is unavailable in the data, but the net margin of -72.9% suggests significant cash consumption relative to operations. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - VALUATION DIVERGENCE — No DCF estimates are available, meaning no intrinsic value benchmark exists to assess over- or undervaluation.
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