The indie Semiconductor, Inc. (NASDAQ:INDI) share price has had a bad week, falling 14%. But that doesn't change the fact that the returns over the last year have been pleasing. After all, the share price is up a market-beating 32% in that time.
Since the long term performance has been good but there's been a recent pullback of 14%, let's check if the fundamentals match the share price.
indie Semiconductor isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Over the last twelve months, indie Semiconductor's revenue grew by 63%. That's a head and shoulders above most loss-making companies. The solid 32% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. So quite frankly it could be a good time to investigate indie Semiconductor in some detail. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. If you are thinking of buying or selling indie Semiconductor stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
indie Semiconductor shareholders should be happy with the total gain of 32% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 39% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand indie Semiconductor better, we need to consider many other factors. Take risks, for example - indie Semiconductor has 2 warning signs we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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.
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