NEW YORK (TheStreet) -- Shares of Cree Inc. (CREE) are higher by 4.59% to $48.29 on Thursday after the company, which is involved in developing and manufacturing semiconductor equipment and other materials, announced its next generation XP LED.
"The XLamp XP-L Led, is the first commercially available single die LED to achieve breakthrough efficacy up to 200 lumens per watt," the company said.
Cree calls the XLamp XP-L Led "game changing" and says it enables an immediate performance increase of 50% or more as a drop-in upgrade for lighting designs based on Cree's market leading XLamp XP-G LEDs.
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"With its high optical control factor, the XP-L will enable lighting manufacturers to improve the performance of existing lighting designs in the XP footprint, reduce the size and cost of new designs and create innovative new solutions to address applications ranging from lamps to stadium lighting," Cree said.
TheStreet Ratings team rates CREE INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CREE INC (CREE) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 4.1%. Since the same quarter one year prior, revenues rose by 16.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CREE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.48, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has exceeded that of the Semiconductors & Semiconductor Equipment industry average, but is less than that of the S&P 500. The net income increased by 27.1% when compared to the same quarter one year prior, rising from $22.16 million to $28.16 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, CREE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- CREE has underperformed the S&P 500 Index, declining 23.30% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full analysis from the report here: CREE Ratings Report