Is the business good?
How good a business is CRDO?
Credo Technology Group Holding Ltd earns 57% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
57%
Return on invested capital · cost of capital 9.0% · 48 points above what the capital costs: growth creates value
- Operating margin
- 33%
Operating margin · Semiconductors median 8.5% · 12 months to Q4 2026
- Cash conversion
- 0.86×
Cash conversion · 0.56× a year ago · some of the reported profit has not turned into cash yet
- R&D as % of revenue
- 21%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | −43% |
| FY2022 | −21% |
| FY2023 | −12% |
| FY2024 | −19% |
| FY2025 | 8.5% |
| FY2026 | 33% |
Details›
- Gross margin12 months to Q4 2026
- 68%
- Operating margin12 months to Q4 2026
- 33%
- Net margin12 months to Q4 2026
- 35%
- Free cash flow margin
- 30%
- R&D as % of revenue
- 21%
- Revenue, trailing twelve months
- $1.34B
- Free cash flow, trailing twelve months
- $407M
- Net income, trailing twelve months
- $472M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 57%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.