indie Semiconductor, Inc. (NASDAQ:INDI) is a company that designs and manufactures semiconductors for the automotive industry. It focuses on providing solutions for advanced driver-assistance systems (ADAS), user experience, and electrification. The company competes with other tech firms like Quantum-Si, Aeva Technologies, Microvast Holdings, Ouster, and Navitas Semiconductor Corporation.
In the analysis of indie Semiconductor's financial performance, the Return on Invested Capital (ROIC) is -19.25%, while the Weighted Average Cost of Capital (WACC) is 11.23%. This results in a ROIC to WACC ratio of -1.71. This ratio indicates that INDI is not generating returns above its cost of capital, but it is still managing its capital more effectively than most of its peers.
Comparing INDI to its peers, Quantum-Si has a ROIC of -46.96% and a WACC of 16.33%, resulting in a ROIC to WACC ratio of -2.88. Aeva Technologies shows a ROIC of -110.66% and a WACC of 10.35%, with a ratio of -10.70. These figures highlight that both companies are less efficient in using their capital compared to INDI.
Microvast Holdings stands out with a ROIC of -15.14% and a WACC of 11.31%, leading to a ROIC to WACC ratio of -1.34. This is the highest among the peers, indicating it is closest to breaking even in terms of generating returns relative to its cost of capital. Despite being negative, Microvast's performance is relatively better.
Ouster and Navitas Semiconductor also show negative ROIC to WACC ratios of -3.67 and -2.18, respectively. Ouster's ROIC is -54.62% with a WACC of 14.88%, while Navitas has a ROIC of -31.48% and a WACC of 14.41%. These figures further emphasize that INDI, despite its challenges, is managing its capital more effectively than most of its peers.
