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indie Semiconductor (INDI)
NASDAQ:INDI
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indie Semiconductor
(NASDAQ:INDI)
Rating:56Neutral
Price Target:
$4.00
▲(8.11%Upside)
Positive Factors
Growth Potential
Analyst reiterates Buy rating and raises the Price Target to $8 from $6, based on improved view of ramp potential and long-term growth drivers.
Market Leadership
Indie Semiconductor represents a compelling investment opportunity, driven by its specialized focus and growing leadership in the high-growth automotive ADAS market, particularly in radar and machine vision applications.
Revenue Growth
Significant revenue growth, gross margin expansion, and a clear path to sustained profitability are expected due to indie's differentiated technology, design win pipeline, and strategic global positioning.
Negative Factors
Macroeconomic Uncertainty
Despite current macroeconomic uncertainty and prior short-term program pushouts, indie looks to now be on the verge of realizing the first real revenue from its multi-year investment commitments.
Market Volatility
The move higher is being exaggerated by indie's very high short interest, which currently has 52.3 million shares short, or 31% of its float.
indie Semiconductor (INDI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$775.68M
Dividend YieldN/A
Average Volume (3M)4.13M
Price to Earnings (P/E)―
Beta (1Y)2.97
Revenue Growth-7.09%
EPS Growth-53.23%
CountryUS
Employees920
SectorTechnology
Sector Strength86
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.08
Shares Outstanding194,892,500
10 Day Avg. Volume5,193,486
30 Day Avg. Volume4,133,474
Financial Highlights & Ratios
PEG Ratio165.71
Price to Book (P/B)2.26K
Price to Sales (P/S)0.00
P/FCF Ratio-8.21K
Enterprise Value/Market Cap2.13K
Enterprise Value/Revenue1.84K
Enterprise Value/Gross Profit18.24K
Enterprise Value/Ebitda-5.32K
Forecast
1Y Price Target
$6.00Price Target Upside62.16% 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 generates revenue primarily through the sale of its semiconductor products, including its system-on-chip solutions, which are supplied to original equipment manufacturers (OEMs) and tier-one suppliers in the automotive industry. The company earns money by licensing its technology and providing custom design services for specific client needs. Significant partnerships with automotive industry leaders and continuous investment in research and development contribute to its ability to offer cutting-edge solutions, further driving its revenue growth.
indie Semiconductor Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 40.15%|
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 Financial Statement Overview
Summary
The company shows impressive revenue growth but struggles with profitability and cash flow. The balance sheet is stable with strong cash reserves, but operational inefficiencies and reliance on leverage pose risks.Income Statement
The company exhibits a significant growth in revenue over recent years, but profitability remains a challenge with persistent negative net income and EBIT margins. The gross profit margin is stable but below industry averages, indicating room for operational improvement.45
Neutral
Balance Sheet
The balance sheet shows a strong cash position with substantial cash and short-term investments relative to total debt, leading to a negative net debt. However, the debt-to-equity ratio is moderately high, suggesting reliance on leverage. The equity ratio is solid, indicating a stable financial structure.55
Neutral
Cash Flow
Free cash flow is consistently negative, reflecting ongoing challenges in generating cash from operations. The operating cash flow to net income ratio indicates cash flow issues relative to reported earnings, though financing activities are supporting liquidity.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 218.41M | 216.68M | 223.17M | 110.80M | 48.41M | 22.61M |
| Gross Profit | 90.59M | 90.31M | 89.56M | 50.24M | 19.39M | 9.57M |
| EBITDA | -93.16M | -93.94M | -90.16M | -35.37M | -111.73M | -93.49M |
| Net Income | -135.97M | -132.60M | -117.63M | -43.40M | -117.97M | -98.36M |
Balance Sheet | ||||||
| Total Assets | 909.02M | 941.39M | 818.88M | 600.89M | 470.13M | 35.13M |
| Cash, Cash Equivalents and Short-Term Investments | 236.61M | 274.25M | 151.68M | 321.63M | 219.08M | 18.70M |
| Total Debt | 25.54M | 398.58M | 174.34M | 181.51M | 7.89M | 20.83M |
| Total Liabilities | 477.29M | 495.99M | 341.85M | 293.53M | 178.91M | 136.62M |
| Stockholders Equity | 431.73M | 445.39M | 446.15M | 306.71M | 316.32M | -110.31M |
Cash Flow | ||||||
| Free Cash Flow | -84.78M | -72.94M | -117.14M | -84.31M | -59.89M | -21.99M |
| Operating Cash Flow | -67.07M | -58.60M | -104.39M | -76.75M | -55.82M | -21.22M |
| Investing Cash Flow | -21.93M | -19.26M | -107.74M | -16.27M | -84.33M | -771.00K |
| Financing Cash Flow | 197.71M | 209.33M | 43.57M | 192.66M | 340.65M | 33.47M |
indie Semiconductor Technical Analysis
Positive
3.70
Price Trends
2.74
Positive
2.70
Positive
3.41
Positive
Market Momentum
0.27
Negative
63.94
Neutral
56.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INDI, the sentiment is Positive. The current price of 3.7 is above the 20-day moving average (MA) of 3.31, above the 50-day MA of 2.74, and above the 200-day MA of 3.41, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 63.94 is Neutral, neither overbought nor oversold. The STOCH value of 56.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $667.90M | 18.69 | 4.72% | 4.39% | -0.41% | -46.38% | |
63 Neutral | $33.61B | 6.06 | -11.53% | 1.82% | 5.53% | -18.79% | |
61 Neutral | $526.01M | ― | -16.06% | ― | 7.90% | 74.69% | |
59 Neutral | $1.21B | ― | -26.43% | ― | -16.95% | -2.47% | |
56 Neutral | $775.68M | ― | -32.43% | ― | -7.09% | -53.23% | |
54 Neutral | $970.74M | ― | -24.12% | ― | 2.66% | -11.35% | |
40 Neutral | $120.32M | ― | -180.49% | ― | -9.62% | -30.36% |
* Technology Sector Average
Performance Comparison
INDI
indie Semiconductor
3.74
-2.55
-40.54%
IMOS
ChipMOS Technologies
18.95
-6.69
-26.09%
WOLF
Wolfspeed
1.18
-22.59
-95.04%
LASR
nLIGHT
19.77
8.78
79.89%
NVTS
Navitas Semiconductor
6.44
2.33
56.69%
SKYT
SkyWater Technology
10.88
3.23
42.22%
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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.