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indie Semiconductor (INDI)
NASDAQ:INDI
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indie Semiconductor
(NASDAQ:INDI)
36Underperform
Positive Factors
Acquisition and Financing
A near-term material catalyst for indie’s stock is the likely announcement of a meaningfully accretive acquisition, supported by the recent convertible financing deal which significantly enhanced the company’s balance sheet.
Backlog and Future Growth
The company's backlog currently supports expected revenue in excess of $700 million by FY28, indicating strong future growth potential.
Market Position and Design Wins
The analyst reiterates a Buy rating for INDI with a price target of $10, expecting shares to go much higher with additional design wins.
Negative Factors
Cyclical Challenges
INDI shares pulled back 44% as auto cyclical challenges made the original financial outlook unattainable.
Order Patterns
The supply chain is seeing its customers be a bit more cautious in their order patterns, highlighted by the slowdown in indie’s order pace.
Revenue Forecast
Indie is forecasting its first quarter revenue to be down about 5% sequentially at the mid-point of $55 million, which is about $6 million below the Street consensus.
indie Semiconductor (INDI) vs. S&P 500 (SPY)
Market Cap
$464.94M
Dividend YieldN/A
Average Volume (3M)4.75M
Price to Earnings (P/E)―
Beta (1Y)2.80
Revenue Growth-2.91%
EPS Growth11.28%
CountryUS
Employees900
SectorTechnology
Sector Strength54
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)-0.75
Shares Outstanding190,823,230
10 Day Avg. Volume4,627,695
30 Day Avg. Volume4,749,337
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.15
Price to Cash Flow (P/CF)-17.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.63Price Target Upside206.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
indie Semiconductor Business Overview & Revenue Model
Company Descriptionindie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, connected car, user experience, and electrification applications. It offers devices for a multitude of automotive applications spanning ultrasound for parking assistance, in cabin wireless charging, infotainment and LED lighting for enhancing the user experience, and telematics and cloud access for connectivity; and photonic components on various technology platforms, including fiber bragg gratings, low noise lasers, athermal and tunable packaging, photonic integration, and low noise and high-speed electronics for the laser systems, optical sensing, and optical communication markets. The company was incorporated in 2007 and is headquartered in Aliso Viejo, California.
How the Company Makes Moneyindie Semiconductor makes money primarily through the design, manufacturing, and sale of semiconductor products tailored for the automotive sector. The company's revenue model is centered on selling integrated circuits and system-on-chip solutions to automotive manufacturers and suppliers. Key revenue streams include supplying components for driver safety systems, in-car user interfaces, and electric vehicle power management. indie Semiconductor may also engage in strategic partnerships with automotive technology companies to enhance their product offerings and expand market reach, thereby contributing to their earnings.
indie Semiconductor Financial Statement Overview
Summary
Indie Semiconductor shows impressive revenue growth but struggles with profitability and operational efficiency. The balance sheet is weighed down by significant liabilities, and negative cash flows indicate liquidity challenges.Income Statement
indie Semiconductor has shown a strong revenue growth trajectory, increasing from $22.6 million in 2020 to $216.7 million in 2024. However, despite the revenue growth, the company remains unprofitable, with persistent negative net income and declining gross profit margins. The EBIT and EBITDA margins are deeply negative, highlighting operational inefficiencies.45
Neutral
Balance Sheet
The company's financial structure shows increasing total assets and stockholders' equity, which is positive. However, the debt-to-equity ratio remains concerning due to a significant amount of liabilities compared to equity. The equity ratio has improved, but the company still carries a notable amount of debt, presenting potential financial risks.40
Negative
Cash Flow
The cash flow situation is weak, with consistently negative operating and free cash flows over the years, indicating challenges in generating sufficient cash from operations. The free cash flow to net income ratio is negative, reflecting the company's inability to convert net income into cash flow, which could strain liquidity in the future.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 216.68M | 223.17M | 110.80M | 48.41M | 22.61M | Gross Profit |
| 216.68M | 89.56M | 50.24M | 19.39M | 9.57M | EBIT |
| -170.08M | -135.42M | -118.13M | -74.11M | -19.24M | EBITDA |
| -170.08M | -90.13M | -35.37M | -111.73M | -93.49M | Net Income Common Stockholders |
| -132.60M | -117.63M | -59.29M | -117.97M | -98.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 274.25M | 151.68M | 321.63M | 219.08M | 18.70M | Total Assets |
| 941.39M | 818.88M | 600.89M | 470.13M | 35.13M | Total Debt |
| 26.50M | 174.34M | 181.51M | 7.89M | 20.83M | Net Debt |
| -247.75M | 22.67M | -140.12M | -211.19M | 2.13M | Total Liabilities |
| 495.99M | 341.85M | 293.53M | 178.91M | 136.62M | Stockholders Equity |
| 445.39M | 446.15M | 306.71M | 316.32M | -110.31M |
| Cash Flow | Free Cash Flow | |||
| -72.94M | -117.14M | -84.31M | -59.89M | -21.99M | Operating Cash Flow |
| -58.60M | -104.39M | -76.75M | -55.82M | -21.22M | Investing Cash Flow |
| -19.26M | -107.74M | -16.27M | -84.33M | -771.00K | Financing Cash Flow |
| 209.33M | 43.57M | 192.66M | 340.65M | 33.47M |
indie Semiconductor Technical Analysis
Negative
2.16
Price Trends
3.40
Negative
3.87
Negative
4.36
Negative
Market Momentum
-0.35
Negative
34.98
Neutral
25.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INDI, the sentiment is Negative. The current price of 2.16 is below the 20-day moving average (MA) of 2.52, below the 50-day MA of 3.40, and below the 200-day MA of 4.36, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 34.98 is Neutral, neither overbought nor oversold. The STOCH value of 25.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INDI.
indie Semiconductor Risk Analysis
indie Semiconductor disclosed 61 risk factors in its most recent earnings report. indie Semiconductor reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
indie Semiconductor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $104.42B | 68.11 | 4.43% | 1.72% | -19.28% | -44.00% | |
70 Outperform | $5.01B | ― | -6.32% | ― | -28.33% | -129.75% | |
68 Neutral | $28.06B | 92.33 | 4.71% | 3.47% | -44.31% | -86.74% | |
67 Neutral | $18.98B | 12.40 | 18.97% | ― | -14.19% | -27.42% | |
65 Neutral | $167.87B | 35.41 | 28.25% | 2.89% | -10.72% | -26.60% | |
58 Neutral | $21.97B | 10.63 | -18.43% | 2.40% | 4.67% | -24.47% | |
36 Underperform | $464.94M | ― | -30.69% | ― | -2.91% | 11.28% |
* Technology Sector Average
Performance Comparison
INDI
indie Semiconductor
2.26
-4.82
-68.08%
ADI
Analog Devices
208.94
14.38
7.39%
MCHP
Microchip
50.79
-36.75
-41.98%
ON
ON Semiconductor
43.76
-29.79
-40.50%
TXN
Texas Instruments
180.76
11.29
6.66%
ALGM
Allegro MicroSystems
25.53
-1.43
-5.30%
indie Semiconductor Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -44.76% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements, such as revenue growth, product success, and strong cash reserves. However, these were tempered by challenges related to market uncertainties, tariffs, and a projected sequential revenue decline. The company remains optimistic about the future, but the immediate outlook is cautious.Highlights
Revenue Growth and Market Share Gains
Indie Semiconductor achieved total revenue of $58 million in Q4 2024, marking a 7.5% sequential growth, which demonstrates outperformance versus the industry and market share gains.
Vision Processor and Radar Program Success
The iND880 Vision Processor was selected by a large Korean OEM for a new e-vehicle platform, and major design wins with General Motors, Toyota, and Ford continue to progress. The 77 GHz Radar program remains on track for a production launch with multiple OEMs.
Strong Cash Position
Indie Semiconductor raised $218.5 million through convertible notes, increasing total cash to $284.5 million, which strengthens the company's ability to capitalize on acquisitions and supports corporate purposes.
Operational Efficiency Improvements
The company achieved a $2 million reduction in quarterly non-GAAP operating expenses through an OpEx review aimed at driving operational efficiencies.
Lowlights
Market Uncertainty and Tariff Challenges
Market uncertainty has accelerated due to impending tariffs, affecting inventory and customer demand. This has led to delays, such as Ford's F-150 model update being pushed from 2027 to 2028.
Sequential Revenue Decline Expected in Q1 2025
Revenue for Q1 2025 is projected to be in the range of $52.5 million to $57.5 million, representing a 5% sequential decline due to market headwinds.
Pressure on Gross Margins
Indie expects Q1 2025 gross margins to be in the 49% to 50% range, a slight decrease from previous levels, attributed to product mix changes and reduced contract revenue.
Company Guidance
During indie Semiconductor’s fourth quarter 2024 earnings call, the company provided guidance for the first quarter of 2025, projecting revenue between $52.5 million and $57.5 million, with a midpoint of $55 million, reflecting a sequential decrease of 5% but a year-over-year increase of 5%. The expected gross margin range is set between 49% and 50%. Operating expenses are anticipated to be around $42 million, with research and development (R&D) costs at $31.5 million and selling, general, and administrative (SG&A) expenses at $10.5 million. This results in a projected net loss per share of $0.08, assuming 211 million shares outstanding. Despite macroeconomic uncertainties, including tariffs and inventory levels, indie remains optimistic about its growth drivers and anticipates significant contributions from new product launches in the second half of 2025 and beyond.indie Semiconductor Corporate Events
Business Operations and StrategyFinancial Disclosures
Indie Semiconductor Exceeds Q3 Revenue Expectations
Positive
Nov 7, 2024
Indie Semiconductor showcases robust growth by surpassing Q3 2024 revenue forecasts with a 3.1% increase to $54 million and a strategic backlog expansion to $7.1 billion, driven by advanced driver-assistance systems (ADAS) design wins. Looking forward, indie anticipates over 7% revenue growth in Q4, fueled by strong demand for radar and vision products, positioning the company for continued success in the automotive semiconductor industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.