Last Updated: 08 Nov 2024
Executive Summary
indie Semiconductor Inc. (INDI) is a factory-less semiconductor company that designs and manufactures custom mixed-signal microcontrollers for various applications. Despite its recent revenue growth, the company faces challenges with profitability and negative profit margins. Analysts maintain a positive outlook on the stock, with a majority recommending a "Buy" rating and an average target price of $8.17.
Company Overview
indie Semiconductor was founded in 2014 and is headquartered in Aliso Viejo, California. The company's products are used in automotive, medical, industrial, and consumer applications. INDI operates on a fabless model, outsourcing manufacturing to third-party foundries.
Fundamental Analysis
Revenue: INDI reported revenue of $235.3 million in the trailing twelve months (TTM), representing a 0.5% year-over-year growth.
Profitability: The company has been operating at a loss, with a net loss of $98.9 million in the TTM.
Margins: INDI's gross profit margin is 21.4%, while its operating margin is -7%.
Earnings Per Share (EPS): The diluted EPS for the TTM is -$0.48.
Valuation: INDI's market capitalization is $615.2 million. The stock trades at a forward price-to-earnings (PE) ratio of 114.94.
Technical Analysis
Price Action: INDI's stock price has been trending lower in recent months.
Moving Averages: The 50-day moving average is $3.678, and the 200-day moving average is $5.57.
Support and Resistance: The stock has support at $3.16 and resistance at $8.69.
Short Term Outlook
In the short term, INDI's stock price may continue to face headwinds due to concerns over profitability. However, the company's strong revenue growth and positive analyst sentiment could provide some support.
Long Term Outlook
Analysts are generally optimistic about INDI's long-term prospects. The growing demand for custom semiconductors in various industries is expected to drive future growth for the company. However, INDI needs to improve its profitability to unlock its full potential.
Analyst Recommendations
Out of 8 analysts covering INDI, 8 recommend "Buy," and 0 recommend "Hold" or "Sell." The average target price is $8.17, representing a potential upside of 138.5% from the current price of $3.43.
