8.39%
-3.27%
73.19%
176.43%
228.58%
446.18%
501.03%

Company Description

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 founded in 2008 and is headquartered in San Jose, California.

Market Data

Last Price 70.02
Change Percentage 8.39%
Open 67.38
Previous Close 64.6
Market Cap ( Millions) 11710
Volume 9163374
Year High 86.69
Year Low 16.82
M A 50 66.1
M A 200 38.47

Financial Ratios

FCF Yield -0.26%
Dividend Yield 0.00%
ROE -4.34%
Debt / Equity 2.28%
Net Debt / EBIDTA 922.55%
Price To Book 20.53
Price Earnings Ratio -489.52
Price To FCF -391.17
Price To sales 47.68
EV / EBITDA -468.17

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Serializer/Deserializer and Digital Signal Processor Technologies

Expected Growth : 10.95 %

What the company do ?

Credo Technology Group Holding Ltd's Serializer/Deserializer and Digital Signal Processor Technologies enable high-speed data transmission and processing in data centers and high-performance computing applications.

Why we expect these perspectives ?

Credo Technology Group Holding Ltd's Serializer/Deserializer and Digital Signal Processor Technologies are driven by growing demand for high-speed data transmission, increasing adoption of cloud computing, and rising need for efficient data processing. The 10.95% growth is also fueled by advancements in 5G, artificial intelligence, and the Internet of Things (IoT), which rely on high-performance serializer/deserializer and digital signal processing capabilities.

Segment nΒ°2 -> Intellectual Property License

Expected Growth : 9.9 %

What the company do ?

The Intellectual Property License from Credo Technology Group Holding Ltd grants permission to use patented technology, ensuring legal use of intellectual property.

Why we expect these perspectives ?

Credo Technology Group Holding Ltd's 9.9% growth in Intellectual Property License is driven by increasing demand for high-speed data transmission, growing adoption of 5G and IoT technologies, and strategic partnerships to expand its patent portfolio. Additionally, the company's focus on innovation and R&D investments has led to the development of new and valuable IP, further fueling growth.

Segment nΒ°3 -> Serializer/Deserializer and Digital Signal Processor Technologies Engineering Services

Expected Growth : 10.32 %

What the company do ?

Credo Technology Group Holding Ltd offers Serializer/Deserializer and Digital Signal Processor Technologies Engineering Services, providing high-speed data transmission and processing solutions for various industries.

Why we expect these perspectives ?

Credo Technology Group Holding Ltd's Serializer/Deserializer and Digital Signal Processor Technologies Engineering Services growth is driven by increasing demand for high-speed data transmission, proliferation of 5G and IoT devices, and rising need for low-power, high-performance computing solutions. Additionally, advancements in artificial intelligence, machine learning, and cloud computing are fueling growth in this segment.

Segment nΒ°4 -> Intellectual Property License Engineering Services

Expected Growth : 9.9 %

What the company do ?

Credo Technology Group Holding Ltd's Intellectual Property License Engineering Services facilitate licensing and management of IP rights, enabling clients to monetize and protect their intellectual property.

Why we expect these perspectives ?

Credo Technology Group Holding Ltd's 9.9% growth in Intellectual Property License Engineering Services is driven by increasing demand for customized IP solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, R&D investments, and a strong sales pipeline have contributed to this growth.

Credo Technology Group Holding Ltd Products

Product Range What is it ?
Optical Interconnects Credo's optical interconnects provide high-speed connectivity solutions for data centers, high-performance computing, and artificial intelligence applications.
Active Electrical Cables Credo's active electrical cables offer high-speed, low-power, and low-latency connectivity solutions for data centers, high-performance computing, and artificial intelligence applications.
SerDes IP Cores Credo's SerDes IP cores provide high-speed, low-power, and low-latency serial link solutions for system-on-chip (SoC) designs.
High-Speed IP Cores Credo's high-speed IP cores provide high-speed, low-power, and low-latency connectivity solutions for data centers, high-performance computing, and artificial intelligence applications.
Silicon Photonics Credo's silicon photonics solutions provide high-speed, low-power, and low-latency optical connectivity solutions for data centers, high-performance computing, and artificial intelligence applications.

Credo Technology Group Holding Ltd's Porter Forces

Credo Technology Group Holding Ltd has a moderate threat of substitutes due to the availability of alternative technologies and products in the market.

Credo Technology Group Holding Ltd has a low bargaining power of customers due to its strong brand reputation and limited customer concentration.

Credo Technology Group Holding Ltd has a moderate bargaining power of suppliers due to the presence of multiple suppliers in the market.

Credo Technology Group Holding Ltd has a high threat of new entrants due to the low barriers to entry in the technology industry.

Credo Technology Group Holding Ltd operates in a highly competitive industry, leading to a high intensity of rivalry among existing competitors.

Capital Structure

Value
Debt Weight 4.27%
Debt Cost 3.95%
Equity Weight 95.73%
Equity Cost 14.11%
WACC 13.68%
Leverage 4.46%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
LITE Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates in two segments, Optical Communications (OpComms) …
ZBRA Zebra Technologies Corporation, together with its subsidiaries, provides enterprise asset intelligence solutions in the automatic identification and data capture solutions industry worldwide. It operates in two segments, Asset Intelligence & …
SATS EchoStar Corporation, together with its subsidiaries, provides networking technologies and services worldwide. The company operates in two segments, Hughes and EchoStar Satellite Services (ESS). The Hughes segment offers broadband network …
UI Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. It develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and …
BDC Belden Inc. provides portfolio of signal transmission solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It operates in two segments, Enterprise Solutions and Industrial Solutions. The …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
30.5$
Current Price
70.02$
Potential
-56.44%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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