Today's video focuses on a quick dive into Indie Semiconductor (INDI -1.95%), giving its fundamentals and current and future products and listing some of the yellow flags that this company might have. Indie Semiconductor provides numerous solutions for the automobile market and has multiple Tier 1 auto manufacturers as customers. Here are some highlights from the video:
- Indie Semiconductor has solutions for autonomous driving, connectivity, user experience, and electrification. As cars become more intelligent, the need for sensors, interface solutions, and other semiconductor products also increases. The demand in this market has caused its most recent earnings revenue to grow over 148% year over year. It is important to note that revenue is still minimal, coming in at roughly $9.2 million.
- On Aug. 31, Indie Semiconductor entered a definitive agreement to purchase TeraXion, a market leader in photonic components. Indie Semiconductor is in the process of developing lidar solutions, which use numerous photonic products. The deal is expected to close in the fourth quarter of 2021.
- These three yellow flags are ones investors should consider before buying. First, Indie is currently unprofitable and does not have positive cash flow from operations. Second, the valuation might seem high. The company has a market cap of roughly $1 billion, and its most recent quarterly revenue was $9.2 million. Third, its small market cap and high valuation may cause the stock price to be highly volatile.
Click the video below for my full thoughts and analysis.
*Stock prices used were the closed prices of Sept. 15, 2021. The video was published on Sept. 16, 2021.