📊 CRDO Key Takeaways
Is Credo Technology Group Holding Ltd (CRDO) a Good Investment?
Credo Technology demonstrates exceptional fundamental strength with 126% YoY revenue growth and 284% YoY net income growth, indicating significant operating leverage and market traction. The company maintains fortress-like financial health with industry-leading liquidity (10.82x current ratio), zero debt, and $1.2B cash position while generating substantial free cash flow ($229.5M, 25.6% margin). Profitability metrics are outstanding with 68% gross margins, 32.2% operating margins, and 33.8% net margins, suggesting strong competitive positioning in high-value semiconductor markets.
Credo Technology shows exceptional fundamental momentum, with revenue up 126.3% YoY and net income up 283.9% YoY while maintaining very high gross, operating, and net margins. The balance sheet is extremely strong with $1.22B in cash, no meaningful long-term debt, and ample liquidity, while free cash flow generation indicates that growth is translating into real cash earnings.
Why Buy Credo Technology Group Holding Ltd Stock? CRDO Key Strengths
- Exceptional revenue growth of 126% YoY with corresponding 284% net income growth demonstrating strong operating leverage
- Industry-leading profitability with 68% gross margin and 33.8% net margin indicating premium product positioning
- Fortress balance sheet with $1.2B cash, zero long-term debt, and 10.82x current ratio providing strategic flexibility
- Strong free cash flow generation of $229.5M (25.6% FCF margin) supporting reinvestment and shareholder returns
- Healthy ROE of 16.4% and ROA of 14.9% showing efficient capital deployment
- Significant insider trading activity (22 Form 4 filings in 90 days) potentially indicating management confidence
- Exceptional growth quality, with triple-digit revenue growth supported by strong expansion in net income and EPS
- High profitability profile, including 68.0% gross margin, 32.2% operating margin, and 33.8% net margin
- Outstanding financial health, with a large net cash position, no leverage, and very strong current and quick ratios
CRDO Stock Risks: Credo Technology Group Holding Ltd Investment Risks
- Extreme revenue growth rate (126% YoY) may be unsustainable and creates elevated expectations for future periods
- High dependency on semiconductor market cycles and customer concentration in cyclical industries
- Rapid growth trajectory requires continued R&D investment and operational scaling to maintain competitive advantage
- Recent IPO/early public company stage with limited operating history at current scale
- Concentration risk if serving limited customer base or specific product segments within semiconductor market
- Current growth rates may be difficult to sustain given the cyclical and competitive nature of semiconductors
- Very high profitability could face pressure if product mix shifts or pricing power weakens
- Returns on capital are strong but not yet extraordinary relative to the company’s very large cash-heavy balance sheet
Key Metrics to Watch
- Revenue growth trajectory and sustainability - monitor if growth decelerates below 50% YoY
- Operating margin stability - ensure profitability doesn't compress as company scales
- Free cash flow consistency - track if FCF margin remains above 20%
- Customer concentration and product diversification - assess revenue reliance on top customers
- Capital expenditure trends - monitor if CapEx increases materially relative to revenue growth
- Gross margin maintenance - watch for compression from competitive pressures or product mix shifts
- Revenue growth and gross margin sustainability
- Free cash flow conversion relative to net income
Credo Technology Group Holding Ltd (CRDO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 25.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 10.82x current ratio provides a solid financial cushion.
CRDO Profit Margin, ROE & Profitability Analysis
CRDO vs Technology Sector: How Credo Technology Group Holding Ltd Compares
How Credo Technology Group Holding Ltd compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Credo Technology Group Holding Ltd Stock Overvalued? CRDO Valuation Analysis 2026
Based on fundamental analysis, Credo Technology Group Holding Ltd has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Credo Technology Group Holding Ltd Balance Sheet: CRDO Debt, Cash & Liquidity
CRDO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Credo Technology Group Holding Ltd's revenue has grown significantly by 310% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.11 indicates the company is currently unprofitable.
CRDO Revenue Growth, EPS Growth & YoY Performance
CRDO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $135.0M | $15.6M | $0.09 |
| Q2 2026 | $72.0M | -$4.2M | $-0.03 |
| Q1 2026 | $59.7M | -$9.5M | $-0.06 |
| Q3 2025 | $53.1M | $428.0K | $0.00 |
| Q2 2025 | $44.0M | -$4.2M | $-0.03 |
| Q1 2025 | $35.1M | -$9.5M | $-0.06 |
| Q3 2024 | $53.1M | $428.0K | $0.00 |
| Q2 2024 | $44.0M | -$3.4M | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Credo Technology Group Holding Ltd Dividends, Buybacks & Capital Allocation
CRDO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Credo Technology Group Holding Ltd (CIK: 0001807794)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CRDO
What is the AI rating for CRDO?
Credo Technology Group Holding Ltd (CRDO) has a Combined AI Rating of STRONG BUY from Claude (STRONG BUY) and ChatGPT (STRONG BUY) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRDO's key strengths?
Claude: Exceptional revenue growth of 126% YoY with corresponding 284% net income growth demonstrating strong operating leverage. Industry-leading profitability with 68% gross margin and 33.8% net margin indicating premium product positioning. ChatGPT: Exceptional growth quality, with triple-digit revenue growth supported by strong expansion in net income and EPS. High profitability profile, including 68.0% gross margin, 32.2% operating margin, and 33.8% net margin.
What are the risks of investing in CRDO?
Claude: Extreme revenue growth rate (126% YoY) may be unsustainable and creates elevated expectations for future periods. High dependency on semiconductor market cycles and customer concentration in cyclical industries. ChatGPT: Current growth rates may be difficult to sustain given the cyclical and competitive nature of semiconductors. Very high profitability could face pressure if product mix shifts or pricing power weakens.
What is CRDO's revenue and growth?
Credo Technology Group Holding Ltd reported revenue of $898.1M.
Does CRDO pay dividends?
Credo Technology Group Holding Ltd does not currently pay dividends.
Where can I find CRDO SEC filings?
Official SEC filings for Credo Technology Group Holding Ltd (CIK: 0001807794) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CRDO's EPS?
Credo Technology Group Holding Ltd has a diluted EPS of $1.62.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CRDO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Credo Technology Group Holding Ltd has a STRONG BUY rating with 90% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CRDO stock overvalued or undervalued?
Valuation metrics for CRDO: ROE of 16.4% (sector avg: 22%), net margin of 33.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy CRDO stock in 2026?
Our dual AI analysis gives Credo Technology Group Holding Ltd a combined STRONG BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CRDO's free cash flow?
Credo Technology Group Holding Ltd's operating cash flow is $282.1M, with capital expenditures of $52.5M. FCF margin is 25.6%.
How does CRDO compare to other Technology stocks?
Vs Technology sector averages: Net margin 33.8% (avg: 18%), ROE 16.4% (avg: 22%), current ratio 10.82 (avg: 2.5).