indie Semiconductor, Inc. (NASDAQ:INDI) is a company that designs and manufactures semiconductors for the automotive industry, focusing on solutions for advanced driver-assistance systems (ADAS), user experience, and electrification applications. In the competitive semiconductor market, indie faces competition from companies like Quantum-Si, Aeva Technologies, Microvast Holdings, Ouster, and Navitas Semiconductor.
In evaluating indie's financial performance, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are crucial metrics. indie's ROIC is -19.25%, while its WACC is 12.61%. This results in a ROIC to WACC ratio of -1.53, indicating that the company is not generating sufficient returns to cover its cost of capital.
Comparatively, Quantum-Si has a ROIC of -46.96% and a WACC of 16.57%, leading to a ROIC to WACC ratio of -2.83. Aeva Technologies shows a more significant gap with a ROIC of -110.66% against a WACC of 10.38%, resulting in a ratio of -10.66. These figures suggest that both companies are struggling more than indie in terms of capital efficiency.
Microvast Holdings stands out with the highest ROIC to WACC ratio among the peers at -1.34, with a ROIC of -15.14% and a WACC of 11.26%. This indicates that while still negative, Microvast is closer to achieving a balance between returns and capital costs compared to its peers, including indie.
Ouster and Navitas Semiconductor also show negative ROIC to WACC ratios of -3.65 and -2.18, respectively. Ouster's ROIC is -54.62% with a WACC of 14.98%, while Navitas has a ROIC of -31.48% and a WACC of 14.41%. These figures highlight the challenges faced by these companies in generating returns that exceed their capital costs.
