Intchains Group Ltd. ADR (ICG) AI Stock Analysis

Compare

57 Followers

Top Page

Intchains Group Ltd. ADR

(NASDAQ:ICG)

Rating:59Neutral

Price Target:―

Intchains Group Ltd. is experiencing strong financial growth and has a promising outlook due to product innovations and strategic focus. However, significant cash flow challenges and bearish technical indicators present notable risks. The stock is reasonably valued but lacks a dividend yield, which may deter income investors.

Intchains Group Ltd. ADR (ICG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$141.62M

Dividend YieldN/A

Average Volume (3M)26.90K

Price to Earnings (P/E)20.2

Beta (1Y)0.97

Revenue Growth236.05%

EPS GrowthN/A

CountryUS

Employees133

SectorTechnology

Sector Strength77

IndustrySemiconductors

Share Statistics

EPS (TTM)-0.04

Shares Outstanding28,375,372

10 Day Avg. Volume30,730

30 Day Avg. Volume26,903

Financial Highlights & Ratios

PEG Ratio0.25

Price to Book (P/B)0.49

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$7.50

Price Target Upside178.81% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Intchains Group Ltd. ADR Business Overview & Revenue Model

Company DescriptionIntchains Group Ltd. ADR (ICG) is a company that operates within the technology sector, focusing on the development and provision of integrated circuits and related technologies. The company primarily engages in designing, manufacturing, and selling high-performance integrated circuits used in various applications, including cryptocurrencies and data processing. Intchains Group Ltd. is known for its innovation in chip design, catering to the needs of rapidly evolving technological landscapes.

How the Company Makes MoneyIntchains Group Ltd. generates revenue through the sale of its integrated circuit products, which are predominantly used in the cryptocurrency industry and other data-intensive applications. The company designs and manufactures these high-performance chips to meet the increasing demand for efficient and powerful computing solutions. Key revenue streams include direct sales to businesses and partnerships with technology firms that require custom chip solutions. Additionally, the company benefits from strategic collaborations with industry-leading enterprises that enhance its market reach and technological capabilities. These partnerships and the company's continuous innovation play a significant role in sustaining and growing its revenue.

Intchains Group Ltd. ADR Financial Statement Overview

Summary

Intchains Group Ltd. shows strong revenue growth and a solid balance sheet with low leverage and high equity. However, cash flow challenges pose significant risks to liquidity and operational sustainability. Improvements in operational efficiency are needed to enhance profitability and ensure robust cash generation.

Income Statement

Positive

Intchains Group Ltd. has shown significant revenue growth from 2023 to 2024, with a notable increase from $82.2M to $281.8M. The gross profit margin improved substantially, reflecting efficient cost management. However, EBIT and EBITDA margins remain low, suggesting potential challenges in operational efficiency. The net profit margin saw a remarkable recovery from a negative position in 2023 to 18.3% in 2024.

Balance Sheet

Positive

The company maintains a strong financial position with a high equity ratio of 93.0% in 2024, indicating a robust capital structure. The debt-to-equity ratio remains exceptionally low, suggesting minimal leverage risks. The return on equity improved significantly, demonstrating effective utilization of shareholders' capital. The overall stability is supported by a substantial cash reserve relative to total liabilities.

Cash Flow

Negative

Cash flow performance is concerning, with zero operating and free cash flow reported in 2024. This indicates potential difficulties in generating cash from operations, despite positive net income. The absence of positive free cash flow growth raises concerns about the company's ability to sustain its operations and invest in growth without external financing.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
281.77M	82.22M	473.74M	631.84M	54.60M
	Gross Profit
151.31M	9.08M	386.72M	517.88M	31.27M
	EBIT
3.16M	-64.97M	360.88M	450.58M	8.07M
	EBITDA
6.99M	-31.66M	324.51M	447.87M	9.10M
	Net Income Common Stockholders
51.50M	-26.80M	355.20M	450.14M	8.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
520.81M	708.35M	712.23M	502.42M	19.63M
	Total Assets
1.09B	979.25M	953.13M	611.26M	43.90M
	Total Debt
272.00K	1.86M	1.27M	2.20M	239.00K
	Net Debt
-321.98M	-692.89M	-710.97M	-500.22M	-19.39M
	Total Liabilities
76.44M	28.93M	19.53M	32.86M	9.71M
	Stockholders Equity
1.01B	950.33M	933.60M	578.40M	34.19M
Cash Flow		Free Cash Flow
0.00	-56.28M	322.67M	393.65M	15.34M
	Operating Cash Flow
0.00	-4.71M	326.69M	395.42M	15.59M
	Investing Cash Flow
0.00	-64.99M	-116.87M	-1.77M	-251.00K
	Financing Cash Flow
0.00	51.22M	0.00	89.14M	251.00K

Intchains Group Ltd. ADR Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.69

Price Trends

50DMA

2.46

Negative

100DMA

3.25

Negative

200DMA

4.34

Negative

Market Momentum

MACD

0.04

Negative

RSI

44.56

Neutral

STOCH

18.61

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICG, the sentiment is Negative. The current price of 2.69 is above the 20-day moving average (MA) of 2.33, above the 50-day MA of 2.46, and below the 200-day MA of 4.34, indicating a bearish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 18.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ICG.

Intchains Group Ltd. ADR Risk Analysis

Intchains Group Ltd. ADR disclosed 82 risk factors in its most recent earnings report. Intchains Group Ltd. ADR reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 3 New Risks

We have incurred net losses and negative cash flows from operating activities in the past, and we may not achieve or sustain profitability. Q4, 2023

Adverse developments affecting the financial services industry could adversely affect our current and projected business operations and our financial condition and results of operations. Q4, 2023

Increases in labor costs and employee benefits in China may adversely affect our business and our profitability. Q4, 2023

Intchains Group Ltd. ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRAM	70 Outperform	$138.17M	176.22	-0.31%	―	-22.48%	-102.37%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
ICG	59 Neutral	$141.62M	20.24	3.39%	―	236.05%	―
QUIK	54 Neutral	$81.56M	―	-24.87%	―	-20.12%	-660.05%
MX	52 Neutral	$141.01M	―	-14.88%	―	3.59%	-64.21%
GSIT	52 Neutral	$82.18M	―	-33.15%	―	-5.73%	47.83%
ATOM	52 Neutral	$203.26M	―	-90.30%	―	-78.70%	13.98%

* Technology Sector Average

Performance Comparison

ICG

Intchains Group Ltd. ADR

2.16

-6.02

-73.59%

GSIT

GSI Technology

3.25

0.46

16.49%

MagnaChip

3.68

-1.27

-25.66%

QUIK

QuickLogic

5.03

-7.62

-60.24%

ATOM

Atomera

6.77

2.55

60.43%

MRAM

Everspin Technologies

6.15

0.10

1.65%

Intchains Group Ltd. ADR Earnings Call Summary

Earnings Call Date:May 22, 2025

(Q1-2025)

% Change Since: 0.00%|

Next Earnings Date:Aug 14, 2025

Earnings Call Sentiment Neutral

The quarter showcased strong revenue growth and improved gross margins, driven by successful launches of new mining products. However, the challenging macroeconomic environment and significant losses due to cryptocurrency market volatility presented notable challenges.

Q1-2025 Updates

Positive Updates

Record Revenue and Growth

Revenue reached $18.2 million, a 78.5% quarter-over-quarter increase, exceeding the upper end of the guidance range of $15 million to $16 million.

Significant Gross Margin Improvement

Gross margin improved to 56.9%, up from 26.2% last quarter, reflecting continued focus on product optimization and operational efficiency.

Positive Operating Income

Operating income turned positive at $5.1 million, a strong recovery from a loss in Q4 2024.

Aleo Mining Series Success

The Aleo mining miner series launched successfully, accounting for nearly 75% of total revenue and contributing to the highest quarterly revenue since 2023.

Strategic Product Launches

Launched five iterations of Aleo series miners and the Goldshell Byte, an innovative power mining machine supporting Aleo, Dogecoin, and Litecoin, showcasing technical strength.

Negative Updates

Cryptocurrency Market Challenges

The total market cap of cryptocurrency declined by 18% during the quarter, impacting overall market conditions.

Net Income Decline

Net income was negative $4.7 million, primarily due to a $9.8 million non-cash loss from revaluation of cryptocurrency holdings, mainly due to the 46% drop in Ethereum price.

High Inventory Levels

Inventories remained high, with a need to adjust prices based on market conditions to avoid write-offs.

Company Guidance

During the first quarter of 2025, Intchains Group Limited reported strong financial performance despite a challenging macroeconomic environment and a significant 18% decline in the total market cap of cryptocurrency. The company achieved a revenue of $18.2 million, marking a 78.5% quarter-over-quarter increase and exceeding their guidance range of $15 million to $16 million. Gross margin improved significantly to 56.9% from 26.2% in the previous quarter, reflecting a 286.9% growth. Operating income turned positive at $5.1 million, recovering from a loss in Q4 2024. However, net income was negative $4.7 million due to a $9.8 million non-cash revaluation loss of cryptocurrency holdings, primarily impacted by a 46% drop in Ethereum prices. Despite this, the company increased its Ether holdings by 23% to 7,023 units. The Aleo mining miner series, launched in February, contributed nearly 75% of the total revenue and played a significant role in driving the strong financial outcomes. Looking ahead, Intchains projects first-half 2025 revenue between RMB 180 million to RMB 200 million and remains focused on innovation and long-term value creation.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.