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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Credo Technology Group Holding (MEX:CRDON) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jul. 2026, Credo Technology Group Holding has a Sloan Ratio of 33.05%, indicating there is a warning stage of accrual build up.
Credo Technology Group Holding Sloan Ratio % Related Terms
Credo Technology Group Holding Sloan Ratio % 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 Sloan Ratio % Chart
MEX:CRDON vs CBRS, MCHP, ALAB: Sloan Ratio % Comparison
For the Semiconductors subindustry, Credo Technology Group Holding's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Credo Technology Group Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Credo Technology Group Holding's Sloan Ratio % falls into.
Credo Technology Group Holding Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Credo Technology Group Holding's Net Income for the trailing twelve months (TTM) ended in Jul. 2026 was 1532.609 (Oct. 2025 ) + 2726.304 (Jan. 2026 ) + 2962.008 (Apr. 2026 ) + 2242.094 (Jul. 2026 ) = MXN9,463 Mil.
Credo Technology Group Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jul. 2026 was 1143.67 (Oct. 2025 ) + 2883.749 (Jan. 2026 ) + 3192.169 (Apr. 2026 ) + 1563.117 (Jul. 2026 ) = MXN8,783 Mil.
Credo Technology Group Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jul. 2026 was -1701.493 (Oct. 2025 ) + 2402.635 (Jan. 2026 ) + -4071.635 (Apr. 2026 ) + -13199.745 (Jul. 2026 ) = MXN-16,570 Mil.
* 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 Sloan Ratio % of 33.05% as of Jul. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Credo Technology Group Holding and its competitors.
Is Credo Technology Group Holding's Sloan Ratio % too high?
Credo Technology Group Holding's current Sloan Ratio % is 33.05%. Overall, Credo Technology Group Holding has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Credo Technology Group Holding's Sloan Ratio % compare to CBRS and MCHP?
Credo Technology Group Holding's Sloan Ratio % of 33.05% can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Semiconductors company?
A good Sloan Ratio % depends on the Semiconductors industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Credo Technology Group Holding and its competitors. Credo Technology Group Holding's current Sloan Ratio % is 33.05%. 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 Possible Value Trap. The stock's GF Value™ is MXN4,553.12, compared to a current price of MXN2,875.00 — trading 36.9% below its estimated fair value. The current Sloan Ratio % is 33.05%. Credo Technology Group Holding's overall GF Score™ is 76/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Credo Technology Group Holding (MEX:CRDON), the current Sloan Ratio % is 33.05% as of Jul. 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 MXN2,875.00 is trading 36.9% below its estimated GF Value™ of MXN4,553.12.
GuruFocus considers Credo Technology Group Holding to be Possible Value Trap.
Key valuation signals for MEX:CRDON:
Sloan Ratio %: 33.05%
GF Value™: MXN4,553.12 vs. price of MXN2,875.00 (36.9% below fair value)
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 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.
76GF Score
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