Credo Technology Group Holding Ltd (CRDO): one to watch?
Watch, not buy yet — growth is still real but margins are cooling and the stock was priced for perfection.
Fell 29% in 7 trading day(s) — now $170.57
Why CRDO dropped
Credo actually beat revenue and earnings estimates for Q1 FY2027 (revenue +115% y/y), but the stock cratered because gross margins slipped and guidance for its optical products came in below what an extremely optimistic market wanted.
Fwd P/E 17.7Op margin 25.2%Rev growth 114.7%Debt/equity 1.0%Analyst upside 65.0%
How this scored 91/100
✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.
Makes money
Net profit margin 33.8%
Generates cash
Free cash flow $248M
Not drowning in debt
Debt/equity 1.0% (limit 200%)
Can pay its bills
Current ratio 7.4 (needs 1+)
Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.
Profitability
Does it actually make money?
25/25
Operating margin
25.2%
9/9
Net profit margin
33.8%
8/8
Return on equity
30.7%
8/8
Growth
Is it getting bigger, or dying?
25/25
Revenue growth
114.7%
9/9
Earnings growth
97.1%
8/8
Expected profit change
237.8%
8/8
Value
Is it cheap right now?
16/25
Forward P/E
17.7
7/10
PEG ratio
unknown
2/8
Analyst target upside
65.0%
7/7
Balance sheet
Will it survive?
25/25
Debt / equity
1.0%
10/10
Current ratio
7.4
8/8
Free cash flow
$248M
7/7
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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-08. Research only — not financial advice.