indie Semiconductor (INDI) AI Stock Analysis

• Market Cap: $925.22M
• Dividend Yield: N/A
• Average Volume (3M): 3.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.00
• Revenue Growth: -7.49%
• EPS Growth: -64.33%
• Country: US
• Employees: 920
• Sector: Technology
• Sector Strength: 83
• Industry: Semiconductors
• EPS (TTM): -0.08
• Shares Outstanding: 198,552,060
• 10 Day Avg. Volume: 3,113,864
• 30 Day Avg. Volume: 3,685,499
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 4.07
• Enterprise Value/Gross Profit: 9.91
• Enterprise Value/Ebitda: -8.05
• 1Y Price Target: $6.67
• Price Target Upside: 55.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: $4.50 ▲(4.65% Upside)

The overall stock score is primarily influenced by significant financial challenges, including declining revenues and persistent losses. Despite positive technical indicators and a generally optimistic earnings call, the negative valuation metrics and ongoing cash flow issues weigh heavily on the stock's attractiveness. The company's strategic initiatives and market expansions provide some optimism, but financial health remains a critical concern.

Positive Factors

Future Growth

INDI's new ADAS programs are projected to be the primary catalyst for the company’s future growth, and their recent expansion into new adjacent markets is expected to create a new software licensing revenue stream.

Investment Opportunity

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.

Negative Factors

Earnings Guidance

For its Q3, indie’s guidance is for revenue of $52–$56 million, with a mid-point of $54 million that was $1.8 million shy of the consensus, and its EPS outlook is for a $0.06 loss per share, which is also just short of the consensus by $0.01.

Forecast Concerns

The company’s somewhat more hesitant forecast is particularly concerning considering that its major ADAS programs are yet to begin their material ramp.

indie Semiconductor Business Overview & Revenue Model

Company Description

indie Semiconductor (INDI) is a technology company that specializes in designing and manufacturing semiconductor solutions for automotive, consumer, and industrial applications. The company focuses on developing innovative system-on-chip (SoC) solutions that integrate microcontrollers, wireless connectivity, and analog components, catering primarily to the automotive sector's growing demand for advanced driver-assistance systems (ADAS), user experience, and electrification technologies.

How the Company Makes Money

indie 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 Financial Statement Overview

Summary

Indie Semiconductor shows strong revenue growth but struggles with profitability and cash flow. The balance sheet is stable with a strong cash position, yet operational inefficiencies and cash flow management need improvement.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	217.69M	216.68M	223.17M	110.80M	48.41M	22.61M
Gross Profit	89.42M	90.31M	89.56M	50.31M	19.71M	9.57M
EBITDA	-110.12M	-93.94M	-90.16M	-35.37M	-111.73M	-93.49M
Net Income	-155.85M	-132.60M	-117.63M	-43.40M	-88.04M	-97.50M
Balance Sheet
Total Assets	867.63M	941.39M	818.88M	600.89M	470.13M	35.13M
Cash, Cash Equivalents and Short-Term Investments	192.56M	274.25M	151.68M	321.63M	219.08M	18.70M
Total Debt	27.52M	398.58M	174.34M	183.47M	7.89M	20.83M
Total Liabilities	452.53M	495.99M	341.85M	293.53M	178.91M	136.62M
Stockholders Equity	415.10M	417.89M	446.15M	306.71M	313.05M	-110.31M
Cash Flow
Free Cash Flow	-75.07M	-72.94M	-117.14M	-84.31M	-59.89M	-21.99M
Operating Cash Flow	-55.00M	-58.60M	-104.39M	-76.75M	-55.82M	-21.22M
Investing Cash Flow	-18.47M	-19.26M	-107.74M	-16.27M	-84.33M	-771.00K
Financing Cash Flow	168.82M	209.33M	43.57M	192.66M	340.65M	33.47M

indie Semiconductor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INDI, the sentiment is Neutral. The current price of 4.3 is below the 20-day moving average (MA) of 4.43, above the 50-day MA of 4.16, and above the 200-day MA of 3.50, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 20.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INDI.

indie Semiconductor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMOS	63 Neutral	$622.20M	126.59	0.66%	4.82%	0.15%	-92.08%
LASR	62 Neutral	$1.47B	―	-20.63%	―	9.79%	10.28%
Sector *	61 Neutral	$35.52B	8.84	-11.06%	1.87%	8.55%	-8.14%
INDI	55 Neutral	$925.22M	―	-36.20%	―	-7.49%	-64.33%
NVTS	52 Neutral	$1.18B	―	-32.05%	―	-25.65%	-130.95%
SKYT	52 Neutral	$520.78M	―	-34.11%	―	-10.53%	36.86%
WOLF	41 Neutral	$194.03M	―	-739.86%	―	-6.14%	-63.68%

indie Semiconductor Corporate Events

Indie Semiconductor Exceeds Q3 Revenue Expectations

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.