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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Credo Technology Group Holding's annualized net income for the quarter that ended in Apr. 2026 was MXN11,848 Mil. Credo Technology Group Holding's average shareholder tangible equity for the quarter that ended in Apr. 2026 was MXN32,275 Mil. Therefore, Credo Technology Group Holding's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 36.71%.
The historical rank and industry rank for Credo Technology Group Holding's Return-on-Tangible-Equity or its related term are showing as below:
MEX:CRDON'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -15.91 Med: -4.85 Max: 37.1
Current: 37.1
During the past 7 years, Credo Technology Group Holding's highest Return-on-Tangible-Equity was 37.10%. The lowest was -15.91%. And the median was -4.85%.
MEX:CRDON's Return-on-Tangible-Equity is ranked better than 93.3% of 985
companies
in the Semiconductors industry
Industry Median: 5.31
vs MEX:CRDON: 37.10
Credo Technology Group Holding (MEX:CRDON) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Credo Technology Group Holding Return-on-Tangible-Equity Related Terms
Credo Technology Group Holding Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Credo Technology Group Holding Return-on-Tangible-Equity Chart
MEX:CRDON vs MCHP, CBRS, ON: Return-on-Tangible-Equity Comparison
For the Semiconductors subindustry, Credo Technology Group Holding's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Credo Technology Group Holding Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Credo Technology Group Holding's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Credo Technology Group Holding's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 36.71% mean?
Credo Technology Group Holding (MEX:CRDON) has a Return-on-Tangible-Equity of 36.71% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Credo Technology Group Holding and its competitors. According to the industry distribution chart, Credo Technology Group Holding ranks #66 out of 985 companies in the Semiconductors industry, placing it in the top 6.7%.
Is Credo Technology Group Holding's Return-on-Tangible-Equity too high?
Credo Technology Group Holding's current Return-on-Tangible-Equity is 36.71%. The Semiconductors industry median Return-on-Tangible-Equity is 5.31. Credo Technology Group Holding's value of 36.71% is 591.3% above this industry median. Based on the distribution chart, Credo Technology Group Holding ranks #66 out of 985 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Credo Technology Group Holding has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Credo Technology Group Holding's Return-on-Tangible-Equity compare to MCHP and CBRS?
According to the Semiconductors industry distribution chart, Credo Technology Group Holding ranks #66 out of 985 companies for Return-on-Tangible-Equity. This places Credo Technology Group Holding in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.31. Credo Technology Group Holding's value of 36.71% is 591.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.31, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Credo Technology Group Holding's current Return-on-Tangible-Equity of 36.71% is 591.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Credo Technology Group Holding and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Credo Technology Group Holding's current Return-on-Tangible-Equity is 36.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Credo Technology Group Holding stock overvalued right now?
Based on GuruFocus' analysis, Credo Technology Group Holding (MEX:CRDON) is currently considered Fairly Valued. The stock's GF Value™ is MXN3,776.76, compared to a current price of MXN3,635.58 — trading 3.7% below its estimated fair value. The current Return-on-Tangible-Equity is 36.71% and 591.3% above the Semiconductors industry median of 5.31. Credo Technology Group Holding's overall GF Score™ is 80/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Credo Technology Group Holding (MEX:CRDON), the current Return-on-Tangible-Equity is 36.71% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Credo Technology Group Holding (MEX:CRDON) Overvalued in 2026?
Based on GuruFocus' analysis, Credo Technology Group Holding stock appears to be undervalued.
The current stock price of MXN3,635.58 is trading 3.7% below its estimated GF Value™ of MXN3,776.76.
GuruFocus considers Credo Technology Group Holding to be Fairly Valued.
Key valuation signals for MEX:CRDON:
Return-on-Tangible-Equity: 36.71%
GF Value™: MXN3,776.76 vs. price of MXN3,635.58 (3.7% below fair value)
Industry Position: 591.3% above the Semiconductors median (#66 of 985)
No single metric tells the full story. See the MEX:CRDON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Credo Technology Group Holding Business Description
Credo Technology Group Holding Ltd provides connectivity solutions for AI-driven applications, cloud computing, and hyperscale networks. Its high-speed copper and optical interconnect products support data infrastructure demands. The Company's product portfolio includes ZeroFlap (ZF) Active Electrical Cables (AECs), ZF optical transceivers, OmniConnect memory solutions, and retimers and DSPs for optical and copper Ethernet and PCIe, leveraging the PILOT diagnostic and analytics software platform. Its products are based on Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technologies and include integrated circuits (ICs), Active Electrical Cables (AECs), SerDes Chiplets, and SerDes IP licensing solutions. The United States generates the maximum revenue.
80GF Score
Get the complete analysis for MEX:CRDON
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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