Analysts Expect Breakeven For indie Semiconductor, Inc. (NASDAQ:INDI) Before Long

We feel now is a pretty good time to analyse indie Semiconductor, Inc.'s (NASDAQ:INDI) business as it appears the company may be on the cusp of a considerable accomplishment. indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. On 31 December 2023, the US$934m market-cap company posted a loss of US$118m for its most recent financial year. As path to profitability is the topic on indie Semiconductor's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for indie Semiconductor

indie Semiconductor is bordering on breakeven, according to the 8 American Semiconductor analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$15m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 81% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for indie Semiconductor given that this is a high-level summary, however, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 34% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of indie Semiconductor which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at indie Semiconductor, take a look at indie Semiconductor's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:

1. Valuation: What is indie Semiconductor worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether indie Semiconductor is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on indie Semiconductor’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.