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indie Semiconductor (INDI)
NASDAQ:INDI
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indie Semiconductor
(NASDAQ:INDI)
Rating:54Neutral
Price Target:
$3.50
▲(9.72%Upside)
Positive Factors
Cash Flow and Valuation
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.
Product Portfolio
Indie's diverse product portfolio and new product ramps into new leading-edge applications are expected to help mitigate some of the market challenges.
Stock Performance
INDI has been on a tear lately, with the stock up 7.3% and up 112% from its lows.
Negative Factors
Customer Visibility
The company's visibility to its customers' planned volumes and program timing has diminished due to the volatile tariff-fueled environment.
Order Ramp and Volume Demand
Indie Semiconductor's outlook was negatively impacted by weaker-than-expected order ramp steepness and lighter volume demand at certain OEMs.
Revenue Forecast
Indie Semiconductor is forecasting its second quarter revenue to be down another 5% sequentially, about $4.5 million below the Street consensus.
indie Semiconductor (INDI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$686.42M
Dividend YieldN/A
Average Volume (3M)3.23M
Price to Earnings (P/E)―
Beta (1Y)2.92
Revenue Growth-7.09%
EPS Growth-53.23%
CountryUS
Employees920
SectorTechnology
Sector Strength79
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.08
Shares Outstanding194,892,500
10 Day Avg. Volume3,930,579
30 Day Avg. Volume3,229,281
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 Cap2.41K
Enterprise Value/Revenue1.84K
Enterprise Value/Gross Profit18.24K
Enterprise Value/Ebitda-5.32K
Forecast
1Y Price Target
$5.33Price Target Upside67.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
indie Semiconductor Business Overview & Revenue Model
Company Descriptionindie 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 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: 20.83%|
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 | EBIT |
| -159.37M | -170.08M | -135.42M | -118.13M | -74.11M | -19.24M | EBITDA |
| -93.16M | -93.94M | -90.16M | -35.37M | -111.73M | -93.49M | Net Income Common Stockholders |
| -135.97M | -132.60M | -117.63M | -43.40M | -117.97M | -98.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 236.61M | 274.25M | 151.68M | 321.63M | 219.08M | 18.70M | Total Assets |
| 909.02M | 941.39M | 818.88M | 600.89M | 470.13M | 35.13M | Total Debt |
| 25.54M | 398.58M | 174.34M | 181.51M | 7.89M | 20.83M | Net Debt |
| -211.06M | 124.33M | 22.67M | -140.12M | -211.19M | 2.13M | 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
3.19
Price Trends
2.35
Positive
2.79
Positive
3.42
Negative
Market Momentum
0.24
Negative
62.08
Neutral
73.30
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 3.19 is above the 20-day moving average (MA) of 2.80, above the 50-day MA of 2.35, and below the 200-day MA of 3.42, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 73.30 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $707.03M | 19.25 | 4.72% | 5.61% | -0.41% | -46.38% | |
63 Neutral | $1.53B | ― | -26.43% | ― | -16.95% | -2.47% | |
62 Neutral | $11.97B | 10.08 | -7.46% | 2.96% | 7.37% | -8.22% | |
61 Neutral | $890.90M | ― | -24.12% | ― | 2.66% | -11.35% | |
54 Neutral | $686.42M | ― | -32.43% | ― | -7.09% | -53.23% | |
54 Neutral | $423.69M | ― | -16.06% | ― | 7.90% | 74.69% | |
41 Neutral | $210.10M | ― | -180.49% | ― | -9.62% | -30.36% |
* Technology Sector Average
Performance Comparison
INDI
indie Semiconductor
3.19
-3.64
-53.29%
IMOS
ChipMOS Technologies
19.25
-7.51
-28.06%
WOLF
Wolfspeed
1.29
-25.79
-95.24%
LASR
nLIGHT
18.04
6.03
50.21%
NVTS
Navitas Semiconductor
7.32
3.05
71.43%
SKYT
SkyWater Technology
8.19
0.18
2.25%
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.