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5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Credo Technology Group Holding's 5-Year ROIIC % for the quarter that ended in Apr. 2026 was 68.65%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Credo Technology Group Holding (NAS:CRDO) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Credo Technology Group Holding 5-Year ROIIC % Related Terms
Credo Technology Group Holding 5-Year ROIIC % 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 5-Year ROIIC % Chart
For the Semiconductors subindustry, Credo Technology Group Holding's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Credo Technology Group Holding's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Credo Technology Group Holding's 5-Year ROIIC % falls into.
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 442.067967 (Apr. 2026) - -25.234 (Apr. 2021) )
/
( 725.616 (Apr. 2026) - 44.866 (Apr. 2021) )
=
467.301967
/
680.75
=
68.65%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Credo Technology Group Holding (CRDO) has a 5-Year ROIIC % of 68.65 as of Apr. 2026. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Credo Technology Group Holding and its competitors. According to the industry distribution chart, Credo Technology Group Holding ranks #70 out of 916 companies in the Semiconductors industry, placing it in the top 7.6%.
Is Credo Technology Group Holding's 5-Year ROIIC % too high?
Credo Technology Group Holding's current 5-Year ROIIC % is 68.65. The Semiconductors industry median 5-Year ROIIC % is 2.83. Credo Technology Group Holding's value of 68.65 is 2325.8% above this industry median. Based on the distribution chart, Credo Technology Group Holding ranks #70 out of 916 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 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Credo Technology Group Holding's 5-Year ROIIC % compare to MCHP and CBRS?
According to the Semiconductors industry distribution chart, Credo Technology Group Holding ranks #70 out of 916 companies for 5-Year ROIIC %. This places Credo Technology Group Holding in the top 8% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 2.83. Credo Technology Group Holding's value of 68.65 is 2325.8% 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 5-Year ROIIC % for a Semiconductors company?
The median 5-Year ROIIC % among Semiconductors companies is 2.83, based on 916 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Credo Technology Group Holding's current 5-Year ROIIC % of 68.65 is 2325.8% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Credo Technology Group Holding and its competitors. For the Semiconductors industry, the median 5-Year ROIIC % is 2.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Credo Technology Group Holding's current 5-Year ROIIC % is 68.65. 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 (CRDO) is currently considered Fairly Valued. The stock's GF Value™ is $221.08, compared to a current price of $230.43 — trading 4.2% above its estimated fair value. The current 5-Year ROIIC % is 68.65 and 2325.8% above the Semiconductors industry median of 2.83. Credo Technology Group Holding's overall GF Score™ is 86/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Credo Technology Group Holding (CRDO), the current 5-Year ROIIC % is 68.65 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 (CRDO) Overvalued in 2026?
Based on GuruFocus' analysis, Credo Technology Group Holding stock appears to be overvalued.
The current stock price of $230.43 is trading 4.2% above its estimated GF Value™ of $221.08.
GuruFocus considers Credo Technology Group Holding to be Fairly Valued.
Key valuation signals for CRDO:
5-Year ROIIC %: 68.65
GF Value™: $221.08 vs. price of $230.43 (4.2% above fair value)
Industry Position: 2325.8% above the Semiconductors median (#70 of 916)
No single metric tells the full story. See the CRDO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
86GF Score
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