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Credo Technology Group Holding

CRDO
78
Communication Equipment · Technology
Price
$202.68
-5.29 (-2.54%)
Market Cap
$37.80B
Exchange
NASDAQ
Winston Score
78
Winston is happy
A high-quality business with solid fundamentals.

Share count rising — dilution

+29.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 145.0M (2022) → 188.2M (2026)

Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Mexico, Mainland China, Hong Kong, and internationally. Its products include integrated circuits, active electrical cables, and SerDes chiplets that are based on its serializer/deserializer and digital signal processor technologies. The company also offers intellectual property solutions consist of SerDes IP licensing. The company was founde

Winston Score History

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+201.5% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+405.9% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$279M/ year

Rising (+91% vs prior year)

20.9% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

10.3%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$1.2B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Credo Technology Group Holding grew revenue 201% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
68.5%
Premium pricing power — 68.5% gross margin
Operating Margin
36.8%
Excellent — 36.8% operating margin
ROCE
8.0%
Below par — 8.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+139.7%
Fast-growing sales (139.7% YoY)
EPS YoY
+503.6%
Earnings growing fast (503.6% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
95%
Modest — 95% of profit becomes cash
FCF Margin
23.7%
Converts sales into free cash efficiently (23.7%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
0.01
Conservative — low debt load (0.01)
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
118.5x
Expensive — P/E 118.5

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+92.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (118.5 → 26.2)

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Dividends

Not applicable for this business.
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