Credo Technology Group Holding Ltd (NASDAQ: CRDO)

Sector: Technology Industry: Semiconductors CIK: 0001807794
Market Cap 25.92 Bn
P/B 20.16
P/E 122.29
P/S 32.56
ROIC (Qtr) 18.83
Div Yield % 0.00
Rev 1y % (Qtr) 272.08
Total Debt (Qtr) 12.81 Mn
Debt/Equity (Qtr) 0.01

About

Credo Technology Group Holding Ltd (CRDO) operates in the data infrastructure market, providing innovative, secure, high-speed, and power-efficient connectivity solutions. The company's offerings are specifically designed to cater to the increasing bandwidth requirements of this market, which is experiencing exponential growth due to the accelerated deployment of leading-edge Artificial Intelligence (AI) infrastructure and applications. Credo Technology Group Holding Ltd generates revenue primarily through the sale of its products, which include...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 177.87M provides robust 13.88x coverage of total debt 12.81M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 1.36B provides 106.41x coverage of total debt 12.81M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 143.61M exceeds capital expenditure of 34.26M by 4.19x, indicating strong organic growth funding capability.
  • Operating cash flow of 177.87M fully covers other non-current liabilities 10.02M by 17.76x, showing strong long-term stability.
  • Operating cash flow of 177.87M provides solid 1.27x coverage of current liabilities 140.37M, showing strong operational health.

Bear case

  • Operating cash flow of 177.87M barely covers its investment activities of (219.11M), with a coverage ratio of -0.81, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (219.11M) provide weak support for R&D spending of 194.21M, which is -1.13x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 567.58M provide limited coverage of acquisition spending of (82.56M), which is -6.87x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 177.87M shows concerning coverage of stock compensation expenses of 124.83M, with a 1.42 ratio indicating potential earnings quality issues.
  • Retained earnings of 62.87M provide limited buffer against comprehensive income items of (632000), which is -99.48x, indicating elevated exposure to market risks.

Geographical Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,516.69 Bn 45.53 24.14 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,678.13 Bn 32.54 14.09 31.18 Bn
3 AVGO Broadcom Inc. 1,624.80 Bn 70.26 25.43 65.14 Bn
4 MU Micron Technology Inc 386.61 Bn 32.46 9.14 12.43 Bn
5 AMD Advanced Micro Devices Inc 330.88 Bn 100.08 10.33 3.87 Bn
6 INTC Intel Corp 300.63 Bn 1,518.33 5.63 46.55 Bn
7 QCOM Qualcomm Inc/De 195.07 Bn 35.20 4.40 14.81 Bn
8 TXN Texas Instruments Inc 173.86 Bn 34.48 10.07 14.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 17.74 4.22
EV to Cash from Ops. EV/CFO 144.58 -369.72
EV to Debt EV to Debt 2,007.39 90.98
EV to EBIT EV/EBIT 119.01 -66.75
EV to EBITDA EV/EBITDA 114.67 23.41
EV to Free Cash Flow [EV/FCF] EV/FCF 179.08 -8.88
EV to Market Cap EV to Market Cap 0.99 0.80
EV to Revenue EV/Rev 32.30 20.68
Price to Book Value [P/B] P/B 20.16 5.21
Price to Earnings [P/E] P/E 122.29 11.55
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.39
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 8.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 9.91
Interest Coverage Interest Coverage 0.00 8.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 5.12 -155.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 137.24 45.60
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.64
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 990.16 26.23
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1,204.27 47.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 1,357.16 25.83
EBT Growth (1y) % EBT 1y % (Qtr) 1,357.16 39.93
EPS Growth (1y) % EPS 1y % (Qtr) 920.00 24.64
FCF Growth (1y) % FCF 1y % (Qtr) 579.72 244.42
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 242.22 43.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.55 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 4.04 2.23
Current Ratio Curr Ratio (Qtr) 8.86 5.43
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.34
Interest Cover Ratio Interest Cover Ratio 0.00 8.38
Times Interest Earned Times Interest Earned 0.00 8.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 30.30 -112.38
EBIT Margin % EBIT Margin % (Qtr) 27.14 -91.98
EBT Margin % EBT Margin % (Qtr) 27.14 -132.25
Gross Margin % Gross Margin % (Qtr) 66.80 47.73
Net Profit Margin % Net Margin % (Qtr) 26.60 -133.26