Section 1: Company Overview and Fundamentals
1.1 Company Overview:
Indie Semiconductor, Inc. (NASDAQ: INDI) offers automotive semiconductors and software solutions for advanced driver assistance systems (ADAS), driver automation, in-cabin, user experience (including connected car) and electrification applications. The Company is focused on edge sensors across multiple modalities spanning light detection and ranging (LiDAR), radar, ultrasound and computer vision.
Kalkine’s American Tech Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.
Stock Performance:
- The stock has corrected by 20.06% in the last three months, similarly has corrected by 4.11% in past nine months.
- The stock is leaning towards the lower band of its 52-week range of high USD 8.83 and 52-week low price of USD 4.67, with the current price near an important support zone of USD 4.50-USD 5.00, with expectations of upward momentum, if these levels sustains.
- The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 65.21.
1.2 The Key Positives, Negatives, and Investment summary
1.3 Top 10 shareholders:
The top 10 shareholders together form ~54.68% of the total shareholding, signifying concentrated shareholding. Granahan Investment Management, LLC, and Baron Capital Management, Inc., are the biggest shareholders, holding the maximum stake in the company at ~11.52% and ~8.50%, respectively.
1.4 Key Metrics:
indie Semiconductor has demonstrated remarkable growth over the past four years. The company's revenue surged from USD 22.7 million in 2020 to USD 223.2 million in 2024, reflecting a compound annual growth rate (CAGR) of 77.08%. Correspondingly, gross profit increased from USD 7 million to USD 89.6 million, achieving an even higher CAGR of 89.15%. Despite fluctuations, gross margin remained robust, peaking at 45.40% in 2023 before settling at 40.14% in 2024. This impressive financial performance highlights indie Semiconductor's significant market expansion and operational efficiency, positioning it well for sustained growth.
Section 2: Business Updates and Corporate Business Highlights
2.1 Recent Updates:
The below picture gives an overview of the recent updates:
2.2 Insights of Q1FY24:
Section 3: Key Risks & Outlook:
Section 4: Stock Recommendation Summary:
4.1 Price Performance and Technical Summary:
Stock Performance:
- The stock has corrected by 20.06% in the last three months, similarly has corrected by 4.11% in past nine months.
- The stock is leaning towards the lower band of its 52-week range of high USD 8.83 and 52-week low price of USD 4.67, with the current price near an important support zone of USD 4.50-USD 5.00, with expectations of upward momentum, if these levels sustains.
- The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 65.21.
4.2 Fundamental Valuation
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 05, 2024. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: The report publishing date is as per the Pacific Time Zone.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.
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