NasdaqGS:AMBA

Stock Analysis Report

Executive Summary

Ambarella, Inc. develops semiconductor processing solutions for video that enable high-definition (HD), video capture, analysis, sharing, and display worldwide.

Snowflake

Fundamentals

Flawless balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Ambarella's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-6.3%

AMBA

1.7%

US Semiconductor

1.0%

US Market


1 Year Return

56.7%

AMBA

19.8%

US Semiconductor

6.7%

US Market

Return vs Industry: AMBA exceeded the US Semiconductor industry which returned 19.8% over the past year.

Return vs Market: AMBA exceeded the US Market which returned 6.7% over the past year.


Share holder returns

AMBAIndustryMarket
7 Day-6.3%1.7%1.0%
30 Day-17.4%-1.5%-1.8%
90 Day15.1%4.9%-1.8%
1 Year56.7%56.7%22.1%19.8%9.1%6.7%
3 Year-14.6%-14.6%80.8%70.1%46.1%36.6%
5 Year36.8%36.8%143.0%118.0%66.9%48.6%

Price Volatility Vs. Market

How volatile is Ambarella's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ambarella undervalued based on future cash flows and its price relative to the stock market?

4.13x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: AMBA ($53.6) is trading above our estimate of fair value ($3.33)

Significantly Undervalued: AMBA is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: AMBA is unprofitable, so we can't compare its PE Ratio to the Semiconductor industry average.

PE vs Market: AMBA is unprofitable, so we can't compare its PE Ratio to the US market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate AMBA's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: AMBA is overvalued based on its PB Ratio (4.1x) compared to the US Semiconductor industry average (2.6x).


Next Steps

Future Growth

How is Ambarella expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: AMBA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AMBA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AMBA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AMBA's revenue (12.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: AMBA's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: AMBA's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Ambarella performed over the past 5 years?

-44.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AMBA is unprofitable, and losses have increased over the past 5 years at a rate of -44.3% per year.

Accelerating Growth: Unable to compare AMBA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AMBA is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-6.2%).


Return on Equity

High ROE: AMBA has a negative Return on Equity (-9.58%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AMBA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AMBA is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Ambarella's financial position?


Financial Position Analysis

Short Term Liabilities: AMBA's short term assets ($425.6M) exceeds its short term liabilities ($47.2M)

Long Term Liabilities: AMBA's short term assets (425.6M) exceeds its long term liabilities (14.5M)


Debt to Equity History and Analysis

Debt Level: AMBA is debt free.

Reducing Debt: AMBA has not had any debt for past 5 years.

Debt Coverage: AMBA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AMBA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AMBA has a low level of unsold assets or inventory.

Debt Coverage by Assets: AMBA's debt is covered by short term assets (assets are 479203266550541369.312380x debt).


Next Steps

Dividend

What is Ambarella's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate AMBA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AMBA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if AMBA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AMBA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMBA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Ambarella's salary, the management and board of directors tenure and is there insider trading?

9.8yrs

Average management tenure


CEO

Fermi Wang (55yo)

15.8yrs

Tenure

US$4,095,780

Compensation

Dr. Feng-Ming Wang, also known as Fermi, PhD., Co-founded Ambarella, Inc in January 2004 and has been its Executive Chairman, Chief Executive Officer and President since January 2004. Dr. Wang served as th ...


CEO Compensation Analysis

Compensation vs. Market: Fermi's total compensation ($USD4.10M) is about average for companies of similar size in the US market ($USD4.08M).

Compensation vs Earnings: Fermi's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.8yrs

Average Tenure

60.5yo

Average Age

Experienced Management: AMBA's management team is seasoned and experienced (9.8 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

60yo

Average Age

Experienced Board: AMBA's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: AMBA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$155,67701 Oct 19
Christopher Day
EntityIndividual
Role
Head of Marketing
Vice President of Marketing & Business Development
Shares2,478
Max PriceUS$62.82
SellUS$630,00001 Oct 19
Chenming Hu
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$63.00
SellUS$85,90523 Sep 19
Teresa Meng
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,312
Max PriceUS$65.48
SellUS$167,89618 Sep 19
Christopher Day
EntityIndividual
Role
Head of Marketing
Vice President of Marketing & Business Development
Shares2,587
Max PriceUS$64.90
SellUS$371,56311 Sep 19
Yun-Lung Chen
EntityIndividual
Shares5,734
Max PriceUS$64.80
SellUS$23,78006 Sep 19
Christopher Day
EntityIndividual
Role
Head of Marketing
Vice President of Marketing & Business Development
Shares405
Max PriceUS$58.72
SellUS$109,51026 Jun 19
Christopher Day
EntityIndividual
Role
Head of Marketing
Vice President of Marketing & Business Development
Shares2,490
Max PriceUS$43.98
SellUS$81,28602 Apr 19
Christopher Day
EntityIndividual
Role
Head of Marketing
Vice President of Marketing & Business Development
Shares1,886
Max PriceUS$43.10
SellUS$106,63920 Mar 19
Christopher Day
EntityIndividual
Role
Head of Marketing
Vice President of Marketing & Business Development
Shares2,474
Max PriceUS$43.10
SellUS$176,78311 Mar 19
Yun-Lung Chen
EntityIndividual
Shares4,283
Max PriceUS$41.28
SellUS$180,06111 Mar 19
Christopher Day
EntityIndividual
Role
Head of Marketing
Vice President of Marketing & Business Development
Shares4,442
Max PriceUS$40.54
SellUS$289,82620 Dec 18
Feng-Ming Wang
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares7,627
Max PriceUS$38.00
SellUS$74,34906 Dec 18
Christopher Day
EntityIndividual
Role
Head of Marketing
Vice President of Marketing & Business Development
Shares1,798
Max PriceUS$41.35

Ownership Breakdown


Management Team

  • Casey Eichler (59yo)

    VP & CFO

    • Tenure: 1.2yrs
    • Compensation: US$4.51m
  • Fermi Wang (55yo)

    Co-Founder

    • Tenure: 15.8yrs
    • Compensation: US$4.10m
  • Didier LeGall (64yo)

    Co-Founder & Executive VP

    • Tenure: 15.3yrs
  • George Laplante (67yo)

    Non-Financial Consultant

    • Tenure: 1.1yrs
    • Compensation: US$359.32k
  • Louis Gerhardy

    Director of Corporate Development & Investor Relations

    • Tenure: 0yrs
  • Les Kohn (62yo)

    Co-Founder

    • Tenure: 15.8yrs
    • Compensation: US$3.41m
  • Michael Morehead

    General Counsel & Secretary

    • Tenure: 9.8yrs
  • Chris Day (56yo)

    Vice President of Marketing & Business Development

    • Tenure: 9.6yrs
    • Compensation: US$1.18m
  • Yang Zemo

    Vice President of Operations

    • Tenure: 9.9yrs

Board Members

  • Andy Verhalen (63yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$262.00k
  • Fermi Wang (55yo)

    Co-Founder

    • Tenure: 15.8yrs
    • Compensation: US$4.10m
  • Chris Paisley (66yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$251.00k
  • Teresa Meng (58yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$189.73k
  • Calvin Hu (71yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$251.00k
  • Jeff Richardson (54yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$259.00k
  • Les Kohn (62yo)

    Co-Founder

    • Tenure: 15.8yrs
    • Compensation: US$3.41m
  • Hsiao-Wuen Hon (56yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$241.00k

Company Information

Ambarella, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ambarella, Inc.
  • Ticker: AMBA
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$1.772b
  • Shares outstanding: 33.06m
  • Website: https://www.ambarella.com

Number of Employees


Location

  • Ambarella, Inc.
  • 3101 Jay Street
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMBANasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDOct 2012
A8BDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2012
0YU1LSE (London Stock Exchange)YesOrdinary SharesGBUSDOct 2012
AMBA NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNOct 2012

Biography

Ambarella, Inc. develops semiconductor processing solutions for video that enable high-definition (HD), video capture, analysis, sharing, and display worldwide. The company’s system-on-a-chip designs integ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:42
End of Day Share Price2019/10/11 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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