Credo Technology Gross Profit vs. Current Valuation
| CRDO Stock | USD 69.46 3.20 4.83% |
Gross Profit | First Reported 2010-12-31 | Previous Quarter 119.4 M | Current Value 82.3 M | Quarterly Volatility 24.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.6 | 0.6189 |
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For Credo Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Credo Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Credo Technology Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Credo Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Credo Technology Group over time as well as its relative position and ranking within its peers.
Credo |
Credo Technology's Revenue Breakdown by Earning Segment
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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 (0.14) | 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.
Please note, there is a significant difference between Credo Technology's value and its price as these two are different measures arrived at by different 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.
Credo Technology Current Valuation vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Credo Technology's current stock value. Our valuation model uses many indicators to compare Credo Technology value to that of its competitors to determine the firm's financial worth. Credo Technology Group is rated below average in gross profit category among its peers. It is rated below average in current valuation category among its peers reporting about 171.05 of Current Valuation per Gross Profit. At this time, Credo Technology's Gross Profit is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Credo Technology's earnings, one of the primary drivers of an investment's value.Credo Technology's Earnings Breakdown by Geography
Credo Current Valuation vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Credo Technology |
| = | 65.77 M |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Credo Technology |
| = | 11.25 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Credo Current Valuation vs Competition
Credo Technology Group is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is currently estimated at about 447.22 Billion. Credo Technology holds roughly 11.25 Billion in current valuation claiming about 2.52% of equities under Information Technology industry.
Credo Technology Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Credo Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Credo Technology will eventually generate negative long term returns. The profitability progress is the general direction of Credo Technology's change in net profit over the period of time. It can combine multiple indicators of Credo Technology, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -519 K | -493.1 K | |
| Operating Income | -36.3 M | -34.5 M | |
| Net Loss | -28.4 M | -29.8 M | |
| Income Before Tax | -22.7 M | -23.9 M | |
| Total Other Income Expense Net | 13.5 M | 14.2 M | |
| Net Loss | -19 M | -20 M | |
| Net Loss | -28.4 M | -29.8 M | |
| Income Tax Expense | 5.6 M | 5.9 M | |
| Non Operating Income Net Other | 3.8 M | 4 M | |
| Change To Netincome | 36.4 M | 38.2 M | |
| Net Loss | (0.18) | (0.25) | |
| Income Quality | (1.15) | 1.39 | |
| Net Income Per E B T | 1.25 | 1.00 |
Credo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Credo Technology. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Credo Technology position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Credo Technology's important profitability drivers and their relationship over time.
Use Credo Technology in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Credo Technology position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Credo Technology will appreciate offsetting losses from the drop in the long position's value.Credo Technology Pair Trading
Credo Technology Group Pair Trading Analysis
The ability to find closely correlated positions to Credo Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Credo Technology when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Credo Technology - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Credo Technology Group to buy it.
The correlation of Credo Technology is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Credo Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Credo Technology moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Credo Technology can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Credo Technology position
In addition to having Credo Technology in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Beer and Liquor
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Beer and Liquor theme has 32 constituents at this time.
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To fully project Credo Technology's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Credo Technology at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Credo Technology's income statement, its balance sheet, and the statement of cash flows.