Credo Technology Group Holding Ltd Ordinary Shares (CRDO)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Credo at $198.31 on 2026-10-13, when the market values the business at $37.3B and FairStock calculates a P/E of 70.07, P/B of 13.65, and EV/EBITDA of 66.39. The operating story is dramatic. Fiscal 2024 (ended 2024-04-27) produced a net loss of $28.4M. Fiscal 2025 (ended 2025-05-03) net income was $52.2M, and fiscal 2026 (ended 2026-05-02) net income was $472.3M on revenue of $1.3B. In fiscal Q1 2027 (ended 2026-08-01), revenue was $479.0M and net income $129.4M, versus revenue of $223.1M and net income of $63.4M in fiscal Q1 2026 (ended 2025-08-02). That is roughly 115% revenue growth and 104% profit growth. The balance sheet is conservative: D/E 0.01, FairStock's Altman Z-Score 79.72, ROE 30.67%, and trailing free cash flow of $438.6M. But ROCE is 16.11%, FairStock's Piotroski F-Score is 3/9, and FCF yield is only 1.2%. The price asks a great deal: FairStock's Graham Number is $30.41, leaving a FairStock margin of safety of -552.12%. PEG of 0.67 is reasonable only if the hypergrowth persists. Lynch category is TURNAROUND, because the company returned to profit after a loss within the last three years. I see a fast-improving business, but not a bargain. The stock's 3.23 beta and 52-week range of $86.49-$308.67 remind me that enthusiasm can reverse. I prefer buying wonderful businesses at fair prices; this looks like a wonderful possibility at a demanding price.

In plain English: Credo makes high-speed connectivity chips and cables used in networking and data centers. The business looks strong because sales and profits have grown very quickly and debt is very low. But the stock looks expensive compared with current earnings and assets, so the price already assumes a lot of future success.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-08-01) · fiscal Q3 2026 10-Q (period ended 2026-01-31) · fiscal Q2 2026 10-Q (period ended 2025-11-01) · fiscal Q1 2026 10-Q (period ended 2025-08-02) · FY2026 10-K (period ended 2026-05-02) · FY2025 10-K (period ended 2025-05-03) · FY2024 10-K (period ended 2024-04-27)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer