📊 CRDO Key Takeaways
Is Credo Technology Group Holding Ltd (CRDO) a Good Investment?
Credo demonstrates exceptional fundamental strength with 205.7% revenue growth, 805% net income growth, and industry-leading margins (35.4% net, 33.3% operating). A fortress balance sheet with $1.2B cash, zero debt, and exceptional liquidity (10.15x current ratio) combined with robust free cash flow generation ($407M, 30.5% margin) provides significant financial security and strategic flexibility.
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.
Credo Technology Group Holding Ltd Key Strengths (CRDO)
- Exceptional triple-digit revenue growth (205.7% YoY) indicating strong market demand
- Industry-leading profitability margins: 68% gross, 33.3% operating, 35.4% net
- Outstanding cash generation: $407M free cash flow with 30.5% FCF margin
- Fortress balance sheet with $1.2B cash, zero debt, and zero financial risk
- Strong returns on capital: 22.9% ROE and 20.6% ROA
- Exceptional liquidity with 10.15x current ratio provides operational flexibility
- 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
- Growth rate sustainability risk: 205% YoY revenue growth is difficult to maintain and likely tied to specific market cycles
- Operating leverage vulnerability: material margin compression if revenue growth decelerates
- Semiconductor industry cyclicality and intense competitive pressure could pressure future margins
- Customer concentration risk: undisclosed but typical in semiconductor sector
- Geopolitical supply chain risks affecting semiconductor industry broadly
- Product cycle dependency and R&D execution risk for next-generation offerings
- 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 rate deceleration trajectory and sustainability
- Gross margin trend under competitive and demand pressures
- Free cash flow generation and capital allocation decisions
- Customer concentration and customer retention/churn rates
- Operating expenses as percentage of revenue (operational efficiency scaling)
- Segment-level performance breakdown and exposure to specific end markets
- 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 30.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 10.15x 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 appears fundamentally strong 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 1,154% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.18 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 Grade of A+ from Claude (A+) and ChatGPT (A+) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRDO's key strengths?
Claude: Exceptional triple-digit revenue growth (205.7% YoY) indicating strong market demand. Industry-leading profitability margins: 68% gross, 33.3% operating, 35.4% net. 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: Growth rate sustainability risk: 205% YoY revenue growth is difficult to maintain and likely tied to specific market cycles. Operating leverage vulnerability: material margin compression if revenue growth decelerates. 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 $1.3B.
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 $2.51.
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 grade reflects both perspectives for balanced insights.
What is CRDO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Credo Technology Group Holding Ltd has a A+ grade with 88% 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 22.9% (sector avg: 22%), net margin of 35.4% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
What is CRDO's AI grade for 2026?
Our dual AI analysis gives Credo Technology Group Holding Ltd a combined A+ grade 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 $464.3M, with capital expenditures of $57.3M. FCF margin is 30.5%.
How does CRDO compare to other Technology stocks?
Vs Technology sector averages: Net margin 35.4% (avg: 18%), ROE 22.9% (avg: 22%), current ratio 10.15 (avg: 2.5).