CREDO TECHNOLOGY GROUP HOLDI (CRDO) Stock Fundamental Analysis
NASDAQ:CRDO - Nasdaq - KYG254571055 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CRDO. CRDO was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. CRDO has an excellent financial health rating, but there are some minor concerns on its profitability. CRDO shows excellent growth, but is valued quite expensive already. This makes CRDO very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year CRDO was profitable.
CRDO had a positive operating cash flow in the past year.
In the past 5 years CRDO reported 4 times negative net income.
In multiple years CRDO reported negative operating cash flow during the last 5 years.
1.2 Ratios
CRDO has a Return On Assets of 6.45%. This is in the better half of the industry: CRDO outperforms 71.82% of its industry peers.
Looking at the Return On Equity, with a value of 7.66%, CRDO is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
CRDO has a Return On Invested Capital of 4.28%. This is in the better half of the industry: CRDO outperforms 60.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.45% | ||
| ROE | 7.66% | ||
| ROIC | 4.28% |
ROA(3y)-0.81%
ROA(5y)-5.2%
ROE(3y)-0.78%
ROE(5y)-5.66%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 11.95%, CRDO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
Looking at the Operating Margin, with a value of 8.70%, CRDO is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
In the last couple of years the Operating Margin of CRDO has grown nicely.
CRDO's Gross Margin of 64.77% is amongst the best of the industry. CRDO outperforms 88.18% of its industry peers.
In the last couple of years the Gross Margin of CRDO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.7% | ||
| PM (TTM) | 11.95% | ||
| GM | 64.77% |
OM growth 3YN/A
OM growth 5Y17.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.53%
GM growth 5Y-5.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CRDO is destroying value.
CRDO has more shares outstanding than it did 1 year ago.
CRDO has more shares outstanding than it did 5 years ago.
CRDO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
CRDO has an Altman-Z score of 97.23. This indicates that CRDO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CRDO (97.23) is better than 99.09% of its industry peers.
CRDO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 97.23 |
ROIC/WACC0.37
WACC11.53%
2.3 Liquidity
CRDO has a Current Ratio of 6.62. This indicates that CRDO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 6.62, CRDO belongs to the top of the industry, outperforming 88.18% of the companies in the same industry.
A Quick Ratio of 5.79 indicates that CRDO has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.79, CRDO belongs to the best of the industry, outperforming 88.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.62 | ||
| Quick Ratio | 5.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 688.89% over the past year.
Looking at the last year, CRDO shows a very strong growth in Revenue. The Revenue has grown by 126.34%.
The Revenue has been growing by 52.02% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)688.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%400%
Revenue 1Y (TTM)126.34%
Revenue growth 3Y60.07%
Revenue growth 5Y52.02%
Sales Q2Q%179.73%
3.2 Future
CRDO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.66% yearly.
CRDO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.62% yearly.
EPS Next Y123.55%
EPS Next 2Y68.59%
EPS Next 3Y45.41%
EPS Next 5Y37.66%
Revenue Next Year91.03%
Revenue Next 2Y53.77%
Revenue Next 3Y34.8%
Revenue Next 5Y28.62%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 149.72 indicates a quite expensive valuation of CRDO.
Compared to the rest of the industry, the Price/Earnings ratio of CRDO indicates a slightly more expensive valuation: CRDO is more expensive than 60.91% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.85. CRDO is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 66.97 indicates a quite expensive valuation of CRDO.
Based on the Price/Forward Earnings ratio, CRDO is valued a bit more expensive than the industry average as 61.82% of the companies are valued more cheaply.
CRDO is valuated expensively when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 149.72 | ||
| Fwd PE | 66.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRDO is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as CRDO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 628.67 | ||
| EV/EBITDA | 329.59 |
4.3 Compensation for Growth
CRDO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CRDO's earnings are expected to grow with 45.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y68.59%
EPS Next 3Y45.41%
5. Dividend
5.1 Amount
CRDO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
106.3
-12.44 (-10.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners76.6%
Inst Owner ChangeN/A
Ins Owners14.44%
Ins Owner Change-3.88%
Market Cap18.25B
Analysts83.16
Price Target99.29 (-6.59%)
Short Float %5.22%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29%
Min EPS beat(2)24.38%
Max EPS beat(2)33.61%
EPS beat(4)3
Avg EPS beat(4)20.84%
Min EPS beat(4)-4.12%
Max EPS beat(4)33.61%
EPS beat(8)7
Avg EPS beat(8)81.24%
EPS beat(12)9
Avg EPS beat(12)53.22%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)7.16%
Min Revenue beat(2)4.08%
Max Revenue beat(2)10.24%
Revenue beat(4)3
Avg Revenue beat(4)4.6%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)10.24%
Revenue beat(8)5
Avg Revenue beat(8)2.35%
Revenue beat(12)6
Avg Revenue beat(12)1.39%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)15.3%
PT rev (3m)47.28%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)31.48%
EPS NY rev (1m)0%
EPS NY rev (3m)36.26%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)17.62%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)20.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 149.72 | ||
| Fwd PE | 66.97 | ||
| P/S | 41.77 | ||
| P/FCF | 628.67 | ||
| P/OCF | 280.34 | ||
| P/B | 26.77 | ||
| P/tB | 26.77 | ||
| EV/EBITDA | 329.59 |
EPS(TTM)0.71
EY0.67%
EPS(NY)1.59
Fwd EY1.49%
FCF(TTM)0.17
FCFY0.16%
OCF(TTM)0.38
OCFY0.36%
SpS2.54
BVpS3.97
TBVpS3.97
PEG (NY)1.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.45% | ||
| ROE | 7.66% | ||
| ROCE | 5.42% | ||
| ROIC | 4.28% | ||
| ROICexc | 11.11% | ||
| ROICexgc | 11.11% | ||
| OM | 8.7% | ||
| PM (TTM) | 11.95% | ||
| GM | 64.77% | ||
| FCFM | 6.64% |
ROA(3y)-0.81%
ROA(5y)-5.2%
ROE(3y)-0.78%
ROE(5y)-5.66%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y0.75%
ROICexc growth 3YN/A
ROICexc growth 5Y0.75%
OM growth 3YN/A
OM growth 5Y17.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.53%
GM growth 5Y-5.44%
F-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 164.38% | ||
| Cap/Sales | 8.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.59% | ||
| Profit Quality | 55.62% | ||
| Current Ratio | 6.62 | ||
| Quick Ratio | 5.79 | ||
| Altman-Z | 97.23 |
F-Score7
WACC11.53%
ROIC/WACC0.37
Cap/Depr(3y)168.77%
Cap/Depr(5y)229.26%
Cap/Sales(3y)9.38%
Cap/Sales(5y)11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)688.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%400%
EPS Next Y123.55%
EPS Next 2Y68.59%
EPS Next 3Y45.41%
EPS Next 5Y37.66%
Revenue 1Y (TTM)126.34%
Revenue growth 3Y60.07%
Revenue growth 5Y52.02%
Sales Q2Q%179.73%
Revenue Next Year91.03%
Revenue Next 2Y53.77%
Revenue Next 3Y34.8%
Revenue Next 5Y28.62%
EBIT growth 1Y204.7%
EBIT growth 3YN/A
EBIT growth 5Y78.45%
EBIT Next Year208.87%
EBIT Next 3Y53.19%
EBIT Next 5Y43.8%
FCF growth 1Y69.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y98.81%
OCF growth 3YN/A
OCF growth 5YN/A