Credo Technology Group Holding Ltd
$214.60
-6.3%Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Mexico, Mainland China, Hong Kong, and internationally. Its products include integrated circuits, active electrical cables, and SerDes chiplets that are based on its serializer/deserializer and digital signal processor technologies. The company also offers intellectual property solutions consist of SerDes IP licensing. The company was founded in 2008 and is headquartered in San Jose, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 81.0).
Valuation inputs: P/E 81.0, earnings yield +1.2%, momentum -6.3%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +22.9%, ROIC +21.1%).
Profitability stack: net margin +35.4%, ROE +22.9%, ROIC +21.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile looks controlled across current risk inputs.
Risk factors: liabilities/assets +10.1%, momentum -6.3%, net margin +35.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Credo Technology Group Holding Ltd Market vs Earnings Trajectory
Performance Analysis
EPS Growth
Strong earnings growth indicates robust business expansion and improving profitability.
Price-EPS Relationship
Stock price is moving in line with earnings growth—a healthy sign of fundamental-driven valuation.
Stock Price Change
Over the 1Y period, stock price has increased by 180.7%.
P/E Ratio (TTM)
Very high P/E suggests premium valuation or high growth expectations.
Key Insight
Strong earnings growth (+261.6%) is outpacing price appreciation (+180.7%), potentially indicating an attractive entry point as the market may not have fully recognized the improving fundamentals.
Credo Technology Group Holding Ltd Fair Value Envelope
Credo Technology Group Holding Ltd Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.
Credo Technology Group Holding Ltd Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Credo Technology Group Holding Ltd Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Credo Technology Group Holding Ltd Street Expectations Map
Wall Street analysts project that CRDO stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 253.60, with estimates ranging from a low of 200.00 to a high of 300.00.
The consensus 1-year price target stands at 253.60, with estimates ranging from a low of 200.00 to a high of 300.00.
Analyst Consensus Analysis
Upside Potential
Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Risk-Reward Profile
Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Asymmetric upside: Strong return potential with favorable risk-reward profile. The limited downside relative to upside makes this an attractive risk-adjusted opportunity for growth-oriented portfolios.
Credo Technology Group Holding Ltd Insider Positioning
During the last 12 months, insiders have sold $63.70M worth of CRDO shares, with no buying activity reported.
3 Months
0
0.00
66.8K
8.15M
-8.1M
-$8.15M
3-6 Months
0
0.00
69.8K
10.34M
-10.3M
-$10.34M
6-9 Months
0
0.00
71.5K
11.71M
-11.7M
-$11.71M
9-12 Months
0
0.00
400.7K
33.50M
-33.5M
-$33.50M
Top Buyers
No buying activity
Top Sellers
Tan Lip Bu
Director
$25.36M
Cheng Chi Fung
Director, Officer: Chief Technology Officer
$19.45M
Lam Yat Tung
Director, Officer: Chief Operating Officer
$6.08M
Laufman James
Officer: Chief Legal Officer, Secretary
$5.68M
Fleming Daniel W.
Officer: Chief Financial Officer
$3.33M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $63.70M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
CRDO has not reported any dividend yield values in the available annual periods.
crdo Dividend History
Learning Layer
Related Guides
Build conviction on CRDO by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.