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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Credo Technology Group Holding's annualized return on capital (ROC %) for the quarter that ended in Apr. 2026 was 93.24%.
As of today (2026-07-28), Credo Technology Group Holding's WACC % is 32.42%. Credo Technology Group Holding's ROC % is 87.29% (calculated using TTM income statement data).
Credo Technology Group Holding generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Credo Technology Group Holding (MEX:CRDON) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Credo Technology Group Holding's WACC % is 32.42%. Credo Technology Group Holding's ROC % is 87.29% (calculated using TTM income statement data).
Credo Technology Group Holding generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Credo Technology Group Holding ROC % Related Terms
Credo Technology Group Holding ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Apr. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (MEX:CRDON) has a ROC % of 93.24% as of Apr. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Credo Technology Group Holding and its competitors.
Is Credo Technology Group Holding's ROC % too high?
Credo Technology Group Holding's current ROC % is 93.24%. The Semiconductors industry median ROC % is 3.78. Credo Technology Group Holding's value of 93.24% is 2369.9% above this industry median. Overall, Credo Technology Group Holding has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Credo Technology Group Holding's ROC % compare to MCHP and CBRS?
Credo Technology Group Holding's ROC % of 93.24% can be compared against companies in the Semiconductors industry. The industry median ROC % is 3.78. Credo Technology Group Holding's value of 93.24% is 2369.9% 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 ROC % for a Semiconductors company?
The median ROC % among Semiconductors companies is 3.78, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Credo Technology Group Holding's current ROC % of 93.24% is 2369.9% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Credo Technology Group Holding and its competitors. For the Semiconductors industry, the median ROC % is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Credo Technology Group Holding's current ROC % is 93.24%. 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 MXN3,792.08, compared to a current price of MXN3,635.58 — trading 4.1% below its estimated fair value. The current ROC % is 93.24% and 2369.9% above the Semiconductors industry median of 3.78. Credo Technology Group Holding's overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Credo Technology Group Holding (MEX:CRDON), the current ROC % is 93.24% 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 4.1% below its estimated GF Value™ of MXN3,792.08.
GuruFocus considers Credo Technology Group Holding to be Fairly Valued.
Key valuation signals for MEX:CRDON:
ROC %: 93.24%
GF Value™: MXN3,792.08 vs. price of MXN3,635.58 (4.1% below fair value)
Industry Position: 2369.9% above the Semiconductors median
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.
81GF Score
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