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Indie Semiconductor, Inc. (INDI)
:INDI
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indie Semiconductor
(NASDAQ:INDI)
Rating:50Neutral
Price Target:
$2.50
▲( 3.31% Upside)
Positive Factors
Liquidity
INDI's share price is anticipated to benefit from a significant infusion of liquidity, which could either strengthen its balance sheet or be used for accretive acquisitions.
Risk Management
The transaction removes risk from INDI’s operations in China, which is advantageous in the current volatile trade environment.
Valuation
The sale is expected to be accretive to gross margin as the company’s business would then be driven by new high-margin vision and radar wins, ultimately positive for INDI’s valuation.
Negative Factors
Market Visibility
In the current volatile tariff fueled environment, indie’s visibility to its customers planned volumes and program timing has simply diminished.
Revenue Forecast
Indie Semiconductor is forecasting its second quarter revenue to be down another 5% sequentially, about $4.5 million below the Street consensus.
Tariff Impact
Tariffs are creating uncertainty across the auto industry, resulting in reduced vehicle production, layoffs, and paused shipments from multiple OEMs, impacting end vehicle sales volumes.
indie Semiconductor (INDI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$514.28M
Dividend YieldN/A
Average Volume (3M)2.78M
Price to Earnings (P/E)―
Beta (1Y)2.88
Revenue Growth-7.09%
EPS Growth-53.23%
CountryUS
Employees920
SectorTechnology
Sector Strength77
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.08
Shares Outstanding194,892,500
10 Day Avg. Volume3,609,728
30 Day Avg. Volume2,776,169
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)0.97
Price to Sales (P/S)0.00
P/FCF Ratio-7.02
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit4.70
Enterprise Value/Ebitda-2.15
Forecast
1Y Price Target
$5.50Price Target Upside127.27% 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 demonstrates impressive revenue growth but struggles with operational efficiency and profitability. The balance sheet shows some positive equity growth, but high liabilities pose risks. Persistent negative cash flows highlight liquidity challenges, making it crucial for the company to enhance operational performance and cash management to achieve financial stability.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 |
| 398.58M | 174.34M | 181.51M | 7.89M | 20.83M | Net Debt |
| 124.33M | 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
2.42
Price Trends
2.16
Positive
2.98
Negative
3.51
Negative
Market Momentum
0.10
Negative
53.30
Neutral
16.83
Positive
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 2.42 is above the 20-day moving average (MA) of 2.33, above the 50-day MA of 2.16, and below the 200-day MA of 3.51, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 16.83 is Positive, 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 3 New Risks
1.
We are subject to counterparty risk with respect to the capped call transactions related to the 2029 Notes. Q4, 2024
2.
The capped call transactions relating to the 2029 Notes may affect the value of the 2029 Notes and our Class A common stock. Q4, 2024
3.
The average selling prices of products in our markets have historically decreased over time and could do so in the future, which could adversely impact our revenue and profitability. Q4, 2024
indie Semiconductor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $691.74M | 19.08 | 4.64% | 4.57% | -0.41% | -47.27% | |
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% | |
59 Neutral | $968.63M | ― | -26.43% | ― | -16.95% | -2.47% | |
55 Neutral | $438.10M | ― | -16.06% | ― | 7.90% | 74.69% | |
53 Neutral | $716.38M | ― | -24.12% | ― | 2.66% | -11.35% | |
50 Neutral | $514.28M | ― | -32.43% | ― | -7.09% | -53.23% | |
45 Neutral | $266.12M | ― | -180.49% | ― | -9.62% | -30.36% |
* Technology Sector Average
Performance Comparison
INDI
indie Semiconductor
2.42
-4.02
-62.42%
IMOS
ChipMOS Technologies
18.92
-7.70
-28.93%
WOLF
Wolfspeed
1.45
-24.82
-94.48%
LASR
nLIGHT
14.49
1.31
9.94%
NVTS
Navitas Semiconductor
4.41
0.71
19.19%
SKYT
SkyWater Technology
9.00
0.77
9.36%
indie Semiconductor Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -8.33%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
While indie Semiconductor achieved notable successes in ADAS and maintained strategic partnerships, the company faces significant market challenges, financial losses, and necessary restructuring to mitigate future risks. The highlights and lowlights are fairly balanced, reflecting both positive developments and persistent challenges.Q1-2025 Updates
Positive Updates
Robust Revenue Performance
Total revenue for Q1 was $54.1 million, representing a 3.3% increase from the previous year, showcasing resilience in the current automotive market.
Successful ADAS Program Developments
Continued success and new design wins in ADAS sensing applications, including radar and vision modalities, with significant revenue potential exceeding $100 million annually per product line.
Strategic Global Partnerships
Key partnerships with major OEMs and Tier 1s, including Bosch and Valeo, indicate strong market positioning and potential for future growth.
Significant Milestone Achieved
Indie Semiconductor has shipped over 500 million chips cumulatively, underscoring the value of its solutions.
Negative Updates
Market Challenges and Uncertainties
Weaker than expected demand from certain OEMs and a slow start in China, compounded by the impact of new U.S. trade tariffs and global economic uncertainties.
Financial Losses and Cash Reduction
Q1 non-GAAP operating loss was $15.1 million, with a net loss of $16.7 million. Cash reserves decreased by $37.6 million during the quarter.
Restructuring Measures Announced
Initiated a series of restructuring measures to exit lower margin product lines and reduce operating expenses by $8 million to $10 million per quarter.
Company Guidance
During indie Semiconductor's first quarter 2025 earnings call, the company reported $54.1 million in revenue, reflecting a 3.3% increase from the previous year but falling slightly short of their revenue outlook midpoint. Non-GAAP gross margin was recorded at 49.5%, with operating expenses totaling $41.9 million, which includes $30.8 million in R&D and $11.1 million in SG&A. The company reported a non-GAAP operating loss of $15.1 million, a net loss of $16.7 million, and a loss per share of $0.08 on a base of 211.5 million shares. For the second quarter, indie forecasts revenue between $50 million and $53 million, with gross margins expected to range from 48% to 50%. Additionally, operational expenses are projected to be $39.8 million, comprising $29 million in R&D and $10.8 million in SG&A. The company anticipates a restructuring plan leading to a quarterly reduction in operating expenses by $8 million to $10 million by the fourth quarter, targeting a breakeven revenue base of approximately $65 million per quarter.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.