CRDO Stock Analysis: Credo Technology Holding | NASDAQ
Semiconductors | NASDAQ, USA | Market Cap: 41.094m USD | 12M Return: 43.3% | KYG254571055 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 1.60B
Qual. Beats: -1
Rev. Trend: 98.6%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 4.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Credo Technology Group Holding Ltd (NASDAQ: CRDO) is a Cayman Islands-incorporated, large-cap semiconductor company that specializes in high-speed connectivity solutions for data-intensive applications. Founded in 2008 and headquartered in Grand Cayman, Credo reported a market capitalization of approximately $41 billion and went public on NASDAQ in January 2022. The company operates within the Information Technology sector, serving markets in the United States, Taiwan, Mainland China, Hong Kong, and other international regions.
Credos product portfolio includes ZeroFlap (ZF) active electrical cables (AECs) and ZF optical transceivers, OmniConnect memory connectivity solutions, and a suite of retimers and DSPs (digital signal processors) for optical and copper-based Ethernet and PCIe applications. Additional offerings include integrated circuits (ICs), AECs, SerDes (serializer/deserializer) chiplets, and intellectual property (IP) licensing focused on SerDes technology. The semiconductor industry context is relevant here: high-speed interconnects are critical infrastructure for AI data centers, hyperscale cloud computing, and next-generation networking, where bandwidth demands continue to scale rapidly.
Credos business model spans both product sales (hardware such as AECs, transceivers, and chips) and IP licensing, providing diversified revenue exposure across the connectivity value chain. Its focus on low-power, high-performance SerDes technology positions the company to address the growing need for reliable, high-bandwidth data transmission in modern computing and networking environments.
- AI data center buildout drives optical and AEC product revenue
- Hyperscaler customer concentration risk in Microsoft and Amazon orders
- PCIe Gen 5 retimer ramp accelerates server connectivity revenue
- Gross margin expansion as high-speed DSP mix increases
- Competition intensifies from Broadcom and Marvell in Ethernet DSP
| Net Income: 538.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 4.23 > 1.0 |
| NWC/Revenue: 79.70% < 20% (prev 115.8%; Δ -36.14% < -1%) |
| CFO/TA 0.17 > 3% & CFO 500.4m > Net Income 538.3m |
| Net Debt (-717.3m) to EBITDA (581.2m): -1.23 < 3 |
| Current Ratio: 7.40 > 1.5 & < 3 |
| Outstanding Shares: last quarter (194.4m) vs 12m ago 5.31% < -2% |
| Gross Margin: 67.07% > 18% (prev 65.98%; Δ 1.08% > 0.5%) |
| Asset Turnover: 81.22% > 50% (prev 66.30%; Δ 14.92% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.42 (Total Current Assets 1.47b - Total Current Liabilities 198.2m) / Total Assets 3.01b |
| B: 0.17 (Retained Earnings 518.5m / Total Assets 3.01b) |
| C: 0.27 (EBIT TTM 531.4m / Avg Total Assets 1.96b) |
| D: 9.60 (Book Value of Equity 2.73b / Total Liabilities 284.2m) |
| Altman-Z'' = 15.22 = AAA |
| DSRI: 0.57 (Receivables 288.8m/192.0m, Revenue 1.59b/600.1m) |
| GMI: 0.98 (GM 65.98% / 67.07%) |
| AQI: 24.43 (AQ_t 0.47 / AQ_t-1 0.02) |
| SGI: 2.65 (Revenue 1.59b / 600.1m) |
| TATA: 0.01 (NI 538.3m - CFO 500.4m) / TA 3.01b) |
| Beneish M = 11.68 (Cap -4..+1) = D |
As of October 10, 2026, the stock is trading at USD 216.55 with a total of 6,294,335 shares traded. Over the past week, the price has changed by -0.96%, over one month by +28.96%, over three months by -18.48% and over the past year by +43.27%.
Current recommended Stop Loss: 196.60 (which is 9.2% or 1.4 ATR below the current price).
Credo Technology Holding has no consensus analysts rating.
| Analysts Target Price | 281.1 | 29.8% |
P/E Trailing = 76.9859
P/E Forward = 30.8642
P/S = 25.8282
P/B = 13.3547
Revenue TTM = 1.59b USD
EBIT TTM = 531.4m USD
EBITDA TTM = 581.2m USD
Long Term Debt = unknown (none)
Short Term Debt = 4.83m USD (from shortTermDebt, last fiscal year)
Debt = 46.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 26.2m
Net Debt = -717.3m USD (calculated: Debt 46.9m - CCE 764.3m)
Enterprise Value = 40.4b USD (41.1b + Debt 46.9m - CCE 764.3m)
Interest Coverage Ratio = unknown (Ebit TTM 531.4m / Interest Expense TTM 0.0)
EV/FCF = 92.06x (Enterprise Value 40.4b / FCF TTM 438.6m)
FCF Yield = 1.09% (FCF TTM 438.6m / Enterprise Value 40.4b)
FCF Margin = 27.57% (FCF TTM 438.6m / Revenue TTM 1.59b)
Net Margin = 33.83% (Net Income TTM 538.3m / Revenue TTM 1.59b)
Gross Margin = 67.07% ((Revenue TTM 1.59b - Cost of Revenue TTM 524.0m) / Revenue TTM)
Gross Margin QoQ = 64.53% (prev 68.21%)
Tobins Q-Ratio = 13.40 (Enterprise Value 40.4b / Total Assets 3.01b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 46.9m)
Taxrate = 0.24% (1.28m / 539.6m)
NOPAT = 530.2m (EBIT 531.4m * (1 - 0.24%))
Current Ratio = 7.40 (Total Current Assets 1.47b / Total Current Liabilities 198.2m)
Debt / Equity = 0.02 (Debt 46.9m / totalStockholderEquity, last quarter 2.73b)
Debt / EBITDA = -1.23 (Net Debt -717.3m / EBITDA 581.2m)
Debt / FCF = -1.64 (Net Debt -717.3m / FCF TTM 438.6m)
Total Stockholder Equity = 1.98b (last 4 quarters mean from totalStockholderEquity)
RoA = 27.48% (Net Income 538.3m / Total Assets 3.01b)
RoE = 27.16% (Net Income TTM 538.3m / Total Stockholder Equity 1.98b)
RoCE = 18.88% (EBIT 531.4m / Capital Employed (Total Assets 3.01b - Current Liab 198.2m))
RoIC = 19.35% (NOPAT 530.2m / Invested Capital 2.74b)
WACC = 20.74% (E(41.1b)/V(41.1b) * Re(20.76%) + D(46.9m)/V(41.1b) * Rd(0.0%) * (1-Tc(0.00)))
Discount Rate = 20.76% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 95.36 | Cagr: 7.94%
[DCF] Terminal Value 47.57% ; FCFF base≈300.5m ; Y1≈344.5m ; Y5≈507.1m
[DCF] Fair Price = 16.24 (EV 2.34b - Net Debt -717.3m = Equity 3.05b / Shares 188.0m; r=20.74% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -2.38 | # QB: -1
Revenue Correlation: 98.57 | Revenue CAGR: 148.8% | SUE: 0.58 | # QB: 0
EPS current Quarter (2026-10-31): EPS=1.28 | Chg30d=+1.82% | Revisions=+50% | Analysts=18
EPS next Quarter (2027-01-31): EPS=1.60 | Chg30d=-2.45% | Revisions=+0% | Analysts=17
EPS current Year (2027-04-30): EPS=6.31 | Chg30d=+2.25% | Revisions=+57% | GrowthEPS=+82.3% | GrowthRev=+87.4%
EPS next Year (2028-04-30): EPS=9.69 | Chg30d=+6.06% | Revisions=+72% | GrowthEPS=+53.7% | GrowthRev=+54.8%
[Analyst] Revisions Ratio: +51% (up=49, down=15)