(CRDO) Credo Technology Holding - NASDAQ
Sector: Technology | Industry: Semiconductors | Exchange: NASDAQ (USA) | Market Cap: 49.152m USD | Total Return: 190.7% in 12m
Avg Turnover: 2.25B
Qual. Beats: 7
Rev. Trend: 96.6%
Qual. Beats: 0
Warnings
P/E ratio 105.0
Beneish M-Score -0.54 > -1.5 - likely earnings manipulation
Tailwinds
Rs Leader, Confidence
Credo Technology Group Holding Ltd (CRDO) designs and provides high-speed connectivity solutions focused on optical and electrical Ethernet and PCIe applications. Its product portfolio includes active electrical cables (AEC), digital signal processors (DSP), SerDes chiplets, and integrated circuits. The company operates a diversified business model that combines hardware sales with intellectual property (IP) licensing, serving hyperscale data centers, high-performance computing (HPC) markets, and optical module manufacturers.
The company operates within the semiconductor sector, where the transition to 400G and 800G network speeds drives demand for low-power, high-bandwidth interconnects. Credos focus on SerDes technology is critical for maintaining signal integrity as data transfer rates increase across cloud infrastructure. You may find further insights into these technical market drivers by exploring the data on ValueRay.
Founded in 2008 and headquartered in the Cayman Islands, Credo maintains a global footprint with significant operations in the United States, Taiwan, and Mainland China. Its customer base includes original equipment manufacturers (OEMs) and original design manufacturers (ODMs) integral to the global enterprise networking supply chain.
- Hyperscale data center adoption of 800G AEC solutions drives revenue growth
- Expansion of SerDes IP licensing increases high-margin recurring income streams
- AI infrastructure demand accelerates deployment of high-speed optical DSP products
- Customer concentration among top-tier cloud providers creates significant revenue volatility risk
- Transition to PCIe Gen 6 and Gen 7 architectures fuels chiplet demand
| Net Income: 472.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA 14.14 > 1.0 |
| NWC/Revenue: 135.1% < 20% (prev 138.7%; Δ -3.59% < -1%) |
| CFO/TA 0.20 > 3% & CFO 464.3m > Net Income 472.3m |
| Net Debt (-1.40b) to EBITDA (510.5m): -2.74 < 3 |
| Current Ratio: 10.15 > 1.5 & < 3 |
| Outstanding Shares: last quarter (192.7m) vs 12m ago 5.80% < -2% |
| Gross Margin: 68.04% > 18% (prev 64.77%; Δ 3.26% > 0.5%) |
| Asset Turnover: 86.00% > 50% (prev 53.97%; Δ 32.03% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.79 (Total Current Assets 2.00b - Total Current Liabilities 197.1m) / Total Assets 2.30b |
| B: 0.17 (Retained Earnings 389.1m / Total Assets 2.30b) |
| C: 0.31 (EBIT TTM 475.4m / Avg Total Assets 1.55b) |
| D: 8.89 (Book Value of Equity 2.06b / Total Liabilities 232.0m) |
| Altman-Z'' = 17.11 = AAA |
| DSRI: 0.47 (Receivables 233.4m/162.1m, Revenue 1.34b/436.8m) |
| GMI: 0.95 (GM 64.77% / 68.04%) |
| AQI: 3.52 (AQ_t 0.07 / AQ_t-1 0.02) |
| SGI: 3.06 (Revenue 1.34b / 436.8m) |
| TATA: 0.00 (NI 472.3m - CFO 464.3m) / TA 2.30b) |
| Beneish M = -0.54 (Cap -4..+1) = D |
As of June 26, 2026, the stock is trading at USD 268.03 with a total of 8,143,923 shares traded. Over the past week, the price has changed by +7.50%, over one month by +20.93%, over three months by +157.94% and over the past year by +190.70%.
Current recommended Stop Loss: 233.70 (which is 12.8% or 1.3 ATR below the current price).
Credo Technology Holding has received a consensus analysts rating of 4.62. Therefore, it is recommended to buy CRDO.
- StrongBuy: 9
- Buy: 3
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 256.3 | -4.4% |
P/E Trailing = 105.012
P/E Forward = 46.0829
P/S = 37.967
P/B = 24.5639
Revenue TTM = 1.34b USD
EBIT TTM = 475.4m USD
EBITDA TTM = 510.5m USD
Long Term Debt = unknown (none)
Short Term Debt = 3.66m USD (from shortTermDebt, two quarters ago)
Debt = 46.1m USD (from shortLongTermDebtTotal, last quarter) + Leases 25.4m
Net Debt = -1.40b USD (calculated: Debt 46.1m - CCE 1.44b)
Enterprise Value = 47.8b USD (49.2b + Debt 46.1m - CCE 1.44b)
Interest Coverage Ratio = unknown (Ebit TTM 475.4m / Interest Expense TTM 0.0)
EV/FCF = 117.3x (Enterprise Value 47.8b / FCF TTM 407.0m)
FCF Yield = 0.85% (FCF TTM 407.0m / Enterprise Value 47.8b)
FCF Margin = 30.48% (FCF TTM 407.0m / Revenue TTM 1.34b)
Net Margin = 35.37% (Net Income TTM 472.3m / Revenue TTM 1.34b)
Gross Margin = 68.04% ((Revenue TTM 1.34b - Cost of Revenue TTM 426.8m) / Revenue TTM)
Gross Margin QoQ = 68.21% (prev 68.52%)
Tobins Q-Ratio = 20.80 (Enterprise Value 47.8b / Total Assets 2.30b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 46.1m)
Taxrate = 0.66% (3.16m / 475.4m)
NOPAT = 472.3m (EBIT 475.4m * (1 - 0.66%))
Current Ratio = 10.15 (Total Current Assets 2.00b / Total Current Liabilities 197.1m)
Debt / Equity = 0.02 (Debt 46.1m / totalStockholderEquity, last quarter 2.06b)
Debt / EBITDA = -2.74 (Net Debt -1.40b / EBITDA 510.5m)
Debt / FCF = -3.43 (Net Debt -1.40b / FCF TTM 407.0m)
Total Stockholder Equity = 1.49b (last 4 quarters mean from totalStockholderEquity)
RoA = 30.42% (Net Income 472.3m / Total Assets 2.30b)
RoE = 31.59% (Net Income TTM 472.3m / Total Stockholder Equity 1.49b)
RoCE = 22.66% (EBIT 475.4m / Capital Employed (Total Assets 2.30b - Current Liab 197.1m))
RoIC = 23.24% (NOPAT 472.3m / Invested Capital 2.03b)
WACC = 19.10% (E(49.2b)/V(49.2b) * Re(19.12%) + D(46.1m)/V(49.2b) * Rd(0.0%) * (1-Tc(0.01)))
Discount Rate = 19.12% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 82.22 | Cagr: 6.52%
[DCF] Terminal Value 50.65% ; FCFF base≈255.8m ; Y1≈293.2m ; Y5≈431.6m
[DCF] Fair Price = 19.26 (EV 2.19b - Net Debt -1.40b = Equity 3.59b / Shares 186.5m; r=19.10% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.96 | # QB: 7
Revenue Correlation: 96.59 | Revenue CAGR: 126.2% | SUE: 0.26 | # QB: 0
EPS current Quarter (2026-07-31): EPS=1.16 | Chg30d=+7.03% | Revisions=+45% | Analysts=15
EPS next Quarter (2026-10-31): EPS=1.23 | Chg30d=+3.91% | Revisions=+45% | Analysts=15
EPS current Year (2027-04-30): EPS=6.07 | Chg30d=+10.05% | Revisions=+57% | GrowthEPS=+75.4% | GrowthRev=+82.4%
EPS next Year (2028-04-30): EPS=8.69 | Chg30d=+14.29% | Revisions=+64% | GrowthEPS=+43.2% | GrowthRev=+46.9%
[Analyst] Revisions Ratio: +64%