Is Credo Technology Stock a Good Investment?
Credo Technology Investment Advice | CRDO |
- Examine Credo Technology's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Credo Technology's leadership team and their track record. Good management can help Credo Technology navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact Credo Technology's business and its evolving consumer preferences.
- Compare Credo Technology's performance and market position to its competitors. Analyze how Credo Technology is positioned in terms of product offerings, innovation, and market share.
- Check if Credo Technology pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Credo Technology's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Credo Technology Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Credo Technology Group is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Good | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Credo Technology Stock
Researching Credo Technology's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 16.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 0.9. Credo Technology recorded a loss per share of 0.16. The entity had not issued any dividends in recent years.
To determine if Credo Technology is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Credo Technology's research are outlined below:
| Credo Technology appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 192.97 M. Net Loss for the year was (28.37 M) with profit before overhead, payroll, taxes, and interest of 65.77 M. | |
| Over 77.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from benzinga.com: A Closer Look at Credo Technology Groups Options Market Dynamics |
Credo Technology Quarterly Liabilities And Stockholders Equity |
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Credo Technology uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Credo Technology Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Credo Technology's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of March 2024 Upcoming Quarterly Report | View | |
| 29th of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 29th of May 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 30th of April 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Credo Technology's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Credo Technology's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-02-27 | 2024-01-31 | 0.03 | 0.04 | 0.01 | 33 | ||
2023-03-01 | 2023-01-31 | 0.04 | 0.05 | 0.01 | 25 | ||
2022-11-30 | 2022-10-31 | 0.03 | 0.02 | -0.01 | 33 | ||
2022-06-01 | 2022-04-30 | 0.0038 | 0.02 | 0.0162 | 426 | ||
2024-05-29 | 2024-04-30 | 0.05 | 0.07 | 0.02 | 40 | ||
2023-11-29 | 2023-10-31 | -0.01 | 0.01 | 0.02 | 200 | ||
2022-03-09 | 2022-01-31 | -0.01 | 0.03 | 0.04 | 400 |
Know Credo Technology's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Credo Technology is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Credo Technology Group backward and forwards among themselves. Credo Technology's institutional investor refers to the entity that pools money to purchase Credo Technology's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | D. E. Shaw & Co Lp | 2024-09-30 | 2.4 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 2.2 M | Jennison Associates Llc | 2024-09-30 | 2 M | Principal Financial Group Inc | 2024-09-30 | 2 M | Frontier Capital Management Co Inc | 2024-09-30 | 1.8 M | American Century Companies Inc | 2024-09-30 | 1.8 M | Nuveen Asset Management, Llc | 2024-09-30 | 1.8 M | Manufacturers Life Insurance Co | 2024-09-30 | 1.8 M | Lord, Abbett & Co Llc | 2024-09-30 | 1.8 M | Vanguard Group Inc | 2024-09-30 | 16.4 M | Blackrock Inc | 2024-06-30 | 14.2 M |
Credo Technology's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 8.13 B.Market Cap |
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Credo Technology's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.05) | (0.06) | |
| Return On Capital Employed | (0.07) | (0.05) | |
| Return On Assets | (0.05) | (0.06) | |
| Return On Equity | (0.05) | (0.07) |
Determining Credo Technology's profitability involves analyzing its financial statements and using various financial metrics to determine if Credo Technology is a good buy. For example, gross profit margin measures Credo Technology's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Credo Technology's profitability and make more informed investment decisions.
Credo Technology's Earnings Breakdown by Geography
Evaluate Credo Technology's management efficiency
Credo Technology has return on total asset (ROA) of (0.0437) % which means that it has lost $0.0437 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.0582) %, meaning that it created substantial loss on money invested by shareholders. Credo Technology's management efficiency ratios could be used to measure how well Credo Technology manages its routine affairs as well as how well it operates its assets and liabilities. As of the 2nd of December 2024, Return On Tangible Assets is likely to drop to -0.06. In addition to that, Return On Capital Employed is likely to grow to -0.05. At this time, Credo Technology's Net Tangible Assets are very stable compared to the past year. As of the 2nd of December 2024, Other Current Assets is likely to grow to about 13.8 M, while Total Assets are likely to drop about 360.5 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 3.48 | 3.78 | |
| Tangible Book Value Per Share | 3.48 | 3.78 | |
| Enterprise Value Over EBITDA | (125.33) | (52.26) | |
| Price Book Value Ratio | 5.33 | 2.92 | |
| Enterprise Value Multiple | (125.33) | (52.26) | |
| Price Fair Value | 5.33 | 2.92 | |
| Enterprise Value | 843.8 M | 1.5 B |
Management at Credo Technology focuses on leveraging technology and optimizing operations. We evaluate the impact of these focuses on the company's financial health and stock performance.
Beta 2.188 |
Basic technical analysis of Credo Stock
As of the 2nd of December, Credo Technology shows the risk adjusted performance of 0.1201, and Mean Deviation of 3.33. Credo Technology technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Credo Technology's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Credo Technology insiders, such as employees or executives, is commonly permitted as long as it does not rely on Credo Technology's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Credo Technology insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Credo Technology's Outstanding Corporate Bonds
Credo Technology issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Credo Technology uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Credo bonds can be classified according to their maturity, which is the date when Credo Technology Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
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| BNP Paribas FRN Corp BondUSF1R15XK367 | View | |
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| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Credo Technology's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Credo Technology's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1201 | |||
| Market Risk Adjusted Performance | 0.2274 | |||
| Mean Deviation | 3.33 | |||
| Semi Deviation | 4.29 | |||
| Downside Deviation | 4.59 | |||
| Coefficient Of Variation | 683.6 | |||
| Standard Deviation | 4.43 | |||
| Variance | 19.63 | |||
| Information Ratio | 0.1152 | |||
| Jensen Alpha | 0.2636 | |||
| Total Risk Alpha | (0.10) | |||
| Sortino Ratio | 0.1113 | |||
| Treynor Ratio | 0.2174 | |||
| Maximum Drawdown | 18.08 | |||
| Value At Risk | (8.52) | |||
| Potential Upside | 7.13 | |||
| Downside Variance | 21.05 | |||
| Semi Variance | 18.42 | |||
| Expected Short fall | (3.77) | |||
| Skewness | (0.78) | |||
| Kurtosis | 1.51 |
| Risk Adjusted Performance | 0.1201 | |||
| Market Risk Adjusted Performance | 0.2274 | |||
| Mean Deviation | 3.33 | |||
| Semi Deviation | 4.29 | |||
| Downside Deviation | 4.59 | |||
| Coefficient Of Variation | 683.6 | |||
| Standard Deviation | 4.43 | |||
| Variance | 19.63 | |||
| Information Ratio | 0.1152 | |||
| Jensen Alpha | 0.2636 | |||
| Total Risk Alpha | (0.10) | |||
| Sortino Ratio | 0.1113 | |||
| Treynor Ratio | 0.2174 | |||
| Maximum Drawdown | 18.08 | |||
| Value At Risk | (8.52) | |||
| Potential Upside | 7.13 | |||
| Downside Variance | 21.05 | |||
| Semi Variance | 18.42 | |||
| Expected Short fall | (3.77) | |||
| Skewness | (0.78) | |||
| Kurtosis | 1.51 |
Consider Credo Technology's intraday indicators
Credo Technology intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Credo Technology stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Credo Technology Corporate Filings
F4 | 20th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 22nd of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 5th of September 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Credo Stock media impact
Far too much social signal, news, headlines, and media speculation about Credo Technology that are available to investors today. That information is available publicly through Credo media outlets and privately through word of mouth or via Credo internal channels. However, regardless of the origin, that massive amount of Credo data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Credo Technology news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Credo Technology relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Credo Technology's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Credo Technology alpha.
Credo Technology Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Credo Technology can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Credo Technology Historical Investor Sentiment
Investor biases related to Credo Technology's public news can be used to forecast risks associated with an investment in Credo. The trend in average sentiment can be used to explain how an investor holding Credo can time the market purely based on public headlines and social activities around Credo Technology Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Credo Technology's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Credo Technology and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Credo Technology news discussions. The higher the estimate score, the more favorable the investor's outlook on Credo Technology.
Credo Technology Corporate Management
| Chi Cheng | CTO Cofounder | Profile | |
| Daniel ONeil | Vice Relations | Profile | |
| Adam ThorngateGottlund | General Secretary | Profile | |
| Daniel Fleming | Chief Officer | Profile | |
| Scott Feller | Vice Marketing | Profile | |
| James Laufman | Chief Secretary | Profile | |
| Jim Laufman | Chief Secretary | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Credo Technology Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Credo Technology. If investors know Credo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Credo Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.87) | Earnings Share (0.16) | Revenue Per Share 1.368 | Quarterly Revenue Growth 0.702 | Return On Assets (0.04) |
The market value of Credo Technology is measured differently than its book value, which is the value of Credo that is recorded on the company's balance sheet. Investors also form their own opinion of Credo Technology's value that differs from its market value or its book value, called intrinsic value, which is Credo Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Credo Technology's market value can be influenced by many factors that don't directly affect Credo Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Credo Technology's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Credo Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Credo Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.