Credo Technology Group Holding Ltd (CRDO): one to watch?

Fundamentals are excellent but the drop reflects real, ongoing margin compression and customer-concentration risk, not just panic — wait for margins to stabilize.

👀 WATCH Fundamentals92/100

Fell 34% in 11 trading day(s) — now $150.39

Why CRDO dropped

Credo beat Q1 estimates with 115% revenue growth, but the stock still fell hard because gross margin slipped from 68.2% to 64.5% and guidance implied further compression; the sell-off deepened afterward amid broader AI-spending-slowdown fears and heavy insider selling.

Fwd P/E 15.5Op margin 25.2%Rev growth 114.7%Debt/equity 1.0%Analyst upside 87.8%

How this scored 92/100

✅ 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 241.7% 8/8

Value Is it cheap right now? 17/25

Forward P/E 15.5 8/10

PEG ratio unknown 2/8

Analyst target upside 87.8% 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 2026-09-16. Research only — not financial advice.