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1. Company Snapshot

1.a. Company Description

indie 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.

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1.b. Last Insights on INDI

indie Semiconductor's recent performance was driven by strong Q2 revenue of $51.6 million, exceeding the midpoint of its outlook, and a Non-GAAP gross margin of 49.1%. The company's acquisition of emotion3D, a developer of advanced perception algorithms and software for ADAS and automated driving, expanded its capabilities. Additionally, indie's photonics portfolio, including its ultra-low noise LXM-U lasers, is gaining industry adoption in quantum applications. Its growing backlog of $7.1B and goal of $800M sales by 2028 also contributed to positive momentum.

1.c. Company Highlights

2. Indie Delivers Solid Q3 Revenue, Amidst Supply Chain Challenges

Indie's third-quarter revenue came in at $53.7 million, in line with the company's outlook, and represents a solid quarter-over-quarter performance. The non-GAAP gross margin was 49.6%, while the non-GAAP operating loss was $11.3 million, indicating progress towards achieving profitability. The actual EPS came out at '-0.07' relative to estimates at '-0.06'. The revenue growth is a positive sign, but the margin pressure due to the substrate shortage and unfavorable product mix is a concern.

Publication Date: Nov -19

📋 Highlights

Operational Highlights

The company's strategic backlog is now at $7.4 billion, with a composition that has strengthened materially due to the higher gross margin product mix following the divestment of Wuxi. The launch of the next-generation Gen8 radar solution by the company's Tier 1 partner is a significant milestone, and the company's differentiated chipset enables the Tier 1 to deliver industry-leading performance. As Donald McClymont mentioned, "We've had so much activity in the last 90 days. It caused us to accelerate our plans to bring up the second sourcing procedures for what we're bringing into play here."

Guidance and Outlook

The company expects to continue growing and delivering revenue within the range of $54 million to $60 million for the fourth quarter, with an estimated shortfall of about $5 million due to the substrate shortage. The non-GAAP gross margin is expected to be in the range of 47% driven by unfavorable product mix and margin pressure on the Wuxi business. Analysts estimate next year's revenue growth at 30.1%, indicating a positive outlook for the company.

Valuation

With a P/S Ratio of 3.21 and an EV/EBITDA of -5.21, the market is pricing in significant growth expectations for indie. The ROE (%) is -35.96, and the ROIC (%) is -18.66, indicating that the company is still in the investment phase. The Net Debt / EBITDA is 1.23, which is relatively manageable. As the company continues to grow and expand its product portfolio, the valuation multiples will be crucial in determining the stock's performance.

Key Drivers

The company's core business is solid and growing, driven by the expansion of the Radar program and some heavier vision programs. The vision programs are ramping now, and the company has added new wins in China, which are expected to contribute significantly to revenue in 2026. The company's technology leadership and expanding product portfolio ensure it is well-positioned to drive continued growth.

3. NewsRoom

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Handelsbanken Fonder AB Makes New $276,000 Investment in indie Semiconductor, Inc. $INDI

Dec -01

Source: defenseworld.net

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Intech Investment Management LLC Sells 17,444 Shares of indie Semiconductor, Inc. $INDI

Dec -01

Source: defenseworld.net

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Mixel MIPI IP Integrated into Automotive Radar Processors Supporting Safety-critical Applications

Nov -20

Source: globenewswire.com

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indie Semiconductor, Inc. (INDI) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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indie Semiconductor, Inc. (INDI) Reports Q3 Loss, Misses Revenue Estimates

Nov -07

Source: zacks.com

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indie Reports Third Quarter 2025 Results

Nov -06

Source: businesswire.com

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indie Appoints New Chief Financial Officer

Nov -06

Source: businesswire.com

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indie Enters into Definitive Agreement to Sell its Interest in Wuxi indie Microelectronics

Oct -28

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.22%)

6. Segments

Automotive Semiconductors and Software Solutions

Expected Growth: 9.33%

Indie Semiconductor's 9.33% growth is driven by increasing demand for advanced automotive semiconductors, particularly in electric and autonomous vehicles. Growing adoption of ADAS, electrification, and connectivity in vehicles fuels demand for indie's software solutions. Additionally, the company's focus on emerging markets, strategic partnerships, and innovative products also contribute to its growth.

Contract

Expected Growth: 8.47%

Indie Semiconductor, Inc.'s 8.47% growth is driven by increasing demand for automotive and industrial semiconductors, expansion into 5G and IoT markets, and strategic partnerships. Additionally, the company's focus on innovative products, such as its proprietary analog-to-digital converter, and its strong operational execution have contributed to its growth momentum.

7. Detailed Products

Automotive Radar Sensors

Indie Semiconductor's automotive radar sensors are designed for advanced driver-assistance systems (ADAS) and autonomous vehicles, providing high-resolution radar sensing for collision avoidance, adaptive cruise control, and other safety features.

LiDAR Solutions

Indie Semiconductor's LiDAR solutions provide high-resolution 3D point cloud data for autonomous vehicles, robotics, and other applications, enabling accurate object detection and tracking.

Wireless Connectivity Solutions

Indie Semiconductor's wireless connectivity solutions provide low-power, high-performance wireless connectivity for IoT devices, wearables, and other applications.

Power Management ICs

Indie Semiconductor's power management ICs provide high-efficiency power conversion and management for automotive, industrial, and consumer applications.

Sensor Interface ICs

Indie Semiconductor's sensor interface ICs provide high-performance analog-to-digital conversion and signal conditioning for a wide range of sensors and applications.

8. indie Semiconductor, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for indie Semiconductor, Inc. is moderate due to the availability of alternative semiconductor products from other companies.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of major customers in the industry, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers of raw materials and components.

Threat Of New Entrants

The threat of new entrants is moderate due to the high barriers to entry in the semiconductor industry, including significant capital requirements and technological expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the semiconductor industry, with multiple established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.82%
Debt Cost 5.14%
Equity Weight 73.18%
Equity Cost 9.94%
WACC 8.65%
Leverage 36.65%

11. Quality Control: indie Semiconductor, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Amtech Systems

A-Score: 4.4/10

Value: 7.1

Growth: 4.7

Quality: 3.8

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

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nLIGHT

A-Score: 4.1/10

Value: 6.4

Growth: 2.6

Quality: 4.3

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

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indie Semiconductor

A-Score: 3.9/10

Value: 7.0

Growth: 4.8

Quality: 4.2

Yield: 0.0

Momentum: 6.5

Volatility: 1.0

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AXT

A-Score: 3.9/10

Value: 8.0

Growth: 0.8

Quality: 4.2

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

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CEVA

A-Score: 3.6/10

Value: 6.8

Growth: 1.4

Quality: 4.5

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

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Mobix Labs

A-Score: 3.4/10

Value: 6.6

Growth: 6.9

Quality: 3.0

Yield: 0.0

Momentum: 3.5

Volatility: 0.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.62$

Current Price

4.62$

Potential

-0.00%

Expected Cash-Flows