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Ambarella

Nasdaq:AMBA
Snowflake Description

Flawless balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AMBA
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Semiconductors
Company description

Ambarella, Inc. develops semiconductor processing solutions for video that enable high-definition (HD), video capture, analysis, sharing, and display worldwide. The last earnings update was 83 days ago. More info.


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  • Ambarella has significant price volatility in the past 3 months.
AMBA Share Price and Events
Price Volatility
AMBA
Industry
5yr Volatility vs Market
Related Companies

AMBA Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ambarella to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ambarella.

NasdaqGS:AMBA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:AMBA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.008 (1 + (1- 21%) (0%))
1.008
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.008 * 7.05%)
10.06%

Discounted Cash Flow Calculation for NasdaqGS:AMBA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ambarella is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:AMBA DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 79.25 72.93 44.03 50.84 58.71
Source Analyst x2 Analyst x2 Analyst x2 Extrapolated @ (15.48%) Extrapolated @ (15.48%)
Present Value
Discounted (@ 10.06%)
72.01 60.21 33.03 34.65 36.36
Present value of next 5 years cash flows $236
NasdaqGS:AMBA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $59 × (1 + 2.95%) ÷ (10.06% – 2.95%)
$850
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $850 ÷ (1 + 10.06%)5
$526
NasdaqGS:AMBA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $236 + $526
$763
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $763 / 33
$22.83
NasdaqGS:AMBA Discount to Share Price
Calculation Result
Value per share (USD) From above. $22.83
Current discount Discount to share price of $38.79
= -1 x ($38.79 - $22.83) / $22.83
-69.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Ambarella is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ambarella's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ambarella's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:AMBA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in USD $0.19
NasdaqGS:AMBA Share Price ** NasdaqGS (2018-07-20) in USD $38.79
United States of America Semiconductor Industry PE Ratio Median Figure of 121 Publicly-Listed Semiconductor Companies 23.48x
United States of America Market PE Ratio Median Figure of 7,819 Publicly-Listed Companies 18.37x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ambarella.

NasdaqGS:AMBA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:AMBA Share Price ÷ EPS (both in USD)

= 38.79 ÷ 0.19

205.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ambarella is overvalued based on earnings compared to the US Semiconductor industry average.
  • Ambarella is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Ambarella's expected growth come at a high price?
Raw Data
NasdaqGS:AMBA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 205.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
8.6%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 112 Publicly-Listed Semiconductor Companies 1.45x
United States of America Market PEG Ratio Median Figure of 5,913 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

NasdaqGS:AMBA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 205.28x ÷ 8.6%

24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ambarella is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ambarella's assets?
Raw Data
NasdaqGS:AMBA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in USD $14.04
NasdaqGS:AMBA Share Price * NasdaqGS (2018-07-20) in USD $38.79
United States of America Semiconductor Industry PB Ratio Median Figure of 195 Publicly-Listed Semiconductor Companies 2.73x
United States of America Market PB Ratio Median Figure of 13,249 Publicly-Listed Companies 1.73x
NasdaqGS:AMBA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:AMBA Share Price ÷ Book Value per Share (both in USD)

= 38.79 ÷ 14.04

2.76x

* Primary Listing of Ambarella.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ambarella is overvalued based on assets compared to the US Semiconductor industry average.
X
Value checks
We assess Ambarella's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. Ambarella has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AMBA Future Performance

 How is Ambarella expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ambarella expected to grow at an attractive rate?
  • Ambarella's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Ambarella's earnings growth is positive but not above the United States of America market average.
  • Ambarella's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:AMBA Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:AMBA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 8.6%
NasdaqGS:AMBA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 13.1%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 7.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:AMBA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:AMBA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-01-31 361 -17 2
2020-01-31 307 49 -12 10
2019-01-31 262 44 -27 10
NasdaqGS:AMBA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-04-30 288 62 6
2018-01-31 295 85 19
2017-10-31 312 93 36
2017-07-31 324 109 53
2017-04-30 317 121 59
2017-01-31 310 113 58
2016-10-31 291 111 45
2016-07-31 283 104 45
2016-04-30 303 114 59
2016-01-31 316 124 77
2015-10-31 313 110 89
2015-07-31 286 91 78

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ambarella's earnings are expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).
  • Ambarella's revenue is expected to grow by 13.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:AMBA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Ambarella Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AMBA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-01-31 -0.52 -0.52 -0.52 1.00
2020-01-31 -0.37 0.39 -0.79 5.00
2019-01-31 -0.81 -0.61 -0.98 5.00
NasdaqGS:AMBA Past Financials Data
Date (Data in USD Millions) EPS *
2018-04-30 0.19
2018-01-31 0.57
2017-10-31 1.08
2017-07-31 1.61
2017-04-30 1.78
2017-01-31 1.77
2016-10-31 1.37
2016-07-31 1.40
2016-04-30 1.86
2016-01-31 2.42
2015-10-31 2.85
2015-07-31 2.53

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ambarella is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ambarella's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ambarella has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AMBA Past Performance

  How has Ambarella performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ambarella's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ambarella's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Ambarella's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Ambarella's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.
Earnings and Revenue History
Ambarella's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ambarella Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AMBA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-04-30 288.21 6.28 49.23 120.57
2018-01-31 295.40 18.85 47.79 115.51
2017-10-31 312.34 35.94 46.71 111.07
2017-07-31 323.76 53.26 45.69 107.24
2017-04-30 317.28 58.59 44.30 103.34
2017-01-31 310.30 57.81 43.45 101.21
2016-10-31 290.76 44.56 42.91 97.52
2016-07-31 283.47 44.97 41.10 93.61
2016-04-30 302.52 59.44 39.62 90.01
2016-01-31 316.37 76.51 37.74 82.13
2015-10-31 313.11 89.08 35.31 74.67
2015-07-31 285.60 77.95 33.76 68.19
2015-04-30 248.37 64.16 31.55 61.65
2015-01-31 218.28 50.56 29.30 57.98
2014-10-31 193.55 38.42 27.80 56.01
2014-07-31 173.85 29.21 26.24 53.90
2014-04-30 164.59 26.15 24.75 51.37
2014-01-31 157.61 25.62 23.15 48.78
2013-10-31 149.16 23.73 21.42 46.97
2013-07-31 138.84 17.51 20.26 43.89
2013-04-30 129.09 12.78 19.06 42.27
2013-01-31 121.07 8.61 17.93 42.43
2012-10-31 114.12 5.33 17.48 41.24
2012-07-31 107.23 4.10 16.68 40.01
2012-04-30 101.54 2.66 16.53 40.34
2012-01-31 97.26 2.57 15.93 37.62

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ambarella has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ambarella used its assets less efficiently than the US Semiconductor industry average last year based on Return on Assets.
  • Ambarella's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Ambarella's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ambarella has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AMBA Health

 How is Ambarella's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ambarella's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ambarella is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ambarella's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ambarella's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Ambarella has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ambarella Company Filings, last reported 2 months ago.

NasdaqGS:AMBA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-04-30 468.81 0.00 414.12
2018-01-31 482.19 0.00 434.59
2017-10-31 469.06 0.00 414.02
2017-07-31 452.73 0.00 400.82
2017-04-30 464.33 0.00 420.17
2017-01-31 454.63 0.00 405.39
2016-10-31 422.61 0.00 372.10
2016-07-31 376.76 0.00 327.03
2016-04-30 376.45 0.00 323.81
2016-01-31 349.46 0.00 307.89
2015-10-31 332.37 0.00 276.72
2015-07-31 296.17 0.00 239.75
2015-04-30 265.41 0.00 235.23
2015-01-31 237.21 0.00 207.99
2014-10-31 209.35 0.00 186.53
2014-07-31 182.31 0.00 166.53
2014-04-30 167.70 0.00 155.62
2014-01-31 156.36 0.00 143.39
2013-10-31 144.42 0.00 128.05
2013-07-31 128.80 0.00 118.31
2013-04-30 119.40 0.00 104.28
2013-01-31 112.33 0.00 100.49
2012-10-31 101.97 0.00 94.82
2012-07-31 67.81 0.00 65.17
2012-04-30 61.18 0.00 59.69
2012-01-31 57.35 0.00 58.94
  • Ambarella has no debt.
  • Ambarella has not taken on any debt in the past 5 years.
  • Ambarella has no debt, it does not need to be covered by operating cash flow.
  • Ambarella has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Ambarella's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ambarella has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AMBA Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Ambarella dividends.
If you bought $2,000 of Ambarella shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Ambarella's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Ambarella's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:AMBA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 67 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5868 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:AMBA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-01-31
2020-01-31 0.00 1.00
2019-01-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Ambarella has not reported any payouts.
  • Unable to verify if Ambarella's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Ambarella's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Ambarella has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Ambarella's dividends in 3 years as they are not expected to pay a notable for United States of America.
X
Income/ dividend checks
We assess Ambarella's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ambarella afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ambarella has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AMBA Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Fermi Wang, image provided by Google.
Fermi Wang
COMPENSATION $5,064,044
AGE 54
TENURE AS CEO 14.5 years
CEO Bio

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 the Chief Executive Officer at Afara Websystems, which he co-founded. Dr. Wang held several senior management positions at C-Cube Microsystems. As Vice President and General Manager of the Home Media division of C-Cube, he had P&L responsibility for silicon solutions for the DVD, digital video recorder (DVR) and digital video distribution and production markets. As Vice President and General Manager of Codec division of C-Cube, he launched its MPEG codec business and served in both engineering and business management roles. During this time, Dr. Wang and his team were responsible for growing the business by 200 percent in two years and developing the world's first MPEG codec chip. Dr. Wang owns several digital video-related patents. Dr. Wang holds a B.S. degree in Electrical Engineering from National Taiwan University and an M.S. degree and Ph.D. in Electrical Engineering from Columbia University.

CEO Compensation
  • Fermi's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Fermi's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Ambarella management team in years:

8.7
Average Tenure
58
Average Age
  • The average tenure for the Ambarella management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Fermi Wang

TITLE
Co-Founder
COMPENSATION
$5M
AGE
54
TENURE
14.5 yrs

Les Kohn

TITLE
Co-Founder
COMPENSATION
$3M
AGE
61
TENURE
14.5 yrs

George Laplante

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
66
TENURE
7.3 yrs

Chris Day

TITLE
Vice President of Marketing & Business Development
COMPENSATION
$1M
AGE
55
TENURE
8.3 yrs

Michael Chen

TITLE
Vice President of Business Development
COMPENSATION
$1M
AGE
53
TENURE
7.1 yrs

Didier LeGall

TITLE
Co-Founder and Executive Vice President
AGE
63
TENURE
14.5 yrs

Yang Zemo

TITLE
Vice President of Operations
TENURE
8.7 yrs

Michael Morehead

TITLE
General Counsel & Secretary
TENURE
8.5 yrs

John Ju

TITLE
Vice President of Systems and General Manager of Asia Design Centers

Lee Chan

TITLE
Vice President of VLSI
TENURE
14.4 yrs
Board of Directors Tenure

Average tenure and age of the Ambarella board of directors in years:

7.5
Average Tenure
61
Average Age
  • The tenure for the Ambarella board of directors is about average.
Board of Directors

Fermi Wang

TITLE
Co-Founder
COMPENSATION
$5M
AGE
54
TENURE
14.5 yrs

Les Kohn

TITLE
Co-Founder
COMPENSATION
$3M
AGE
61
TENURE
14.5 yrs

Andy Verhalen

TITLE
Director
COMPENSATION
$258K
AGE
62
TENURE
14.5 yrs

Chris Paisley

TITLE
Director
COMPENSATION
$250K
AGE
65
TENURE
5.9 yrs

Jeff Richardson

TITLE
Independent Director
COMPENSATION
$258K
AGE
53
TENURE
4.3 yrs

Calvin Hu

TITLE
Director
COMPENSATION
$251K
AGE
70
TENURE
7.5 yrs

Hsiao-Wuen Hon

TITLE
Independent Director
COMPENSATION
$217K
AGE
55
TENURE
0.9 yrs
Recent Insider Trading
  • Ambarella insiders have only sold shares in the past 3 months.
Who owns this company?
X
Management checks
We assess Ambarella's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ambarella has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AMBA News

External News
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Simply Wall St News

Who Really Owns Ambarella Inc (NASDAQ:AMBA)?

In this analysis, my focus will be on developing a perspective on Ambarella Inc’s (NASDAQ:AMBA) latest ownership structure, a less discussed, but important factor. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.

Simply Wall St -

Ambarella Inc (NASDAQ:AMBA): Does The -89.28% Earnings Drop Reflect A Longer Term Trend?

Today I will examine Ambarella Inc's (NASDAQ:AMBA) latest earnings update (30 April 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of AMBA's industry performed. … Was AMBA weak performance lately part of a long-term decline. … AMBA's trailing twelve-month earnings (from 30 April 2018) of US$6.28m has

Simply Wall St -

At US$042.66, Is Ambarella Inc (NASDAQ:AMBA) A Buy?

received a lot of attention from a substantial price movement on the NasdaqGS over the last few months, increasing to $55 at one point, and dropping to the lows of $42.66. … A question to answer is whether Ambarella's current trading price of $42.66 reflective of the actual value of the? … Let’s take a look at Ambarella’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

What Are Analysts Saying About Ambarella Inc's (NASDAQ:AMBA) Future Margins?

Margin Calculation for AMBA Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 18.85 Million ÷ 295.40 Million = 6.38% Ambarella's margin has expanded in the past five years, due to 24.91% in average net income growth exceeding 20.16% in average revenue growth, indicating that that the previous revenue growth has been acompanied by a growing portion translated in to earnings. … The current 6.38% margin seems to continue this movement, which could imply improved cost efficiency as well as increasing revenue contributed to the previous earnings growth. … Margins are expected to reverse its previous trend and start to contract, with 9.68% in expected annual revenue growth and earnings expected to fall at -61.18% on an annual basis.

Simply Wall St -

Will Ambarella Inc (NASDAQ:AMBA) Continue To Underperform Its Industry?

View our latest analysis for Ambarella What you must know about ROE Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:AMBA Last Perf May 28th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management. … Although, its appropriate level of leverage means investors can be more confident in the sustainability of Ambarella’s return with a possible increase should the company decide to increase its debt levels.

Simply Wall St -

Should You Be Tempted To Sell Ambarella Inc (NASDAQ:AMBA) Because Of Its PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for AMBA Price per share = $50.84 Earnings per share = $0.567 ∴ Price-Earnings Ratio = $50.84 ÷ $0.567 = 89.6x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you are inadvertently comparing riskier firms with AMBA, then AMBA’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price. … If this assumption does not hold true, AMBA’s higher P/E ratio may be because firms in our peer group are being undervalued by the market.

Simply Wall St -

Should You Buy Ambarella Inc (NASDAQ:AMBA) At $48.54?

Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … If you believe AMBA is currently trading above its value, selling high and buying it back up again when its price falls towards its real value can be profitable. … If you are no longer interested in Ambarella, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Simply Wall St -

Ambarella Inc (NASDAQ:AMBA): Can It Deliver A Superior ROE To The Industry?

Check out our latest analysis for Ambarella What you must know about ROE Return on Equity (ROE) weighs Ambarella’s profit against the level of its shareholders’ equity. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:AMBA Last Perf Feb 19th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses. … Ambarella exhibits a weak ROE against its peers, as well as insufficient levels to cover its own cost of equity this year.

Simply Wall St -

Does Ambarella Inc's (AMBA) PE Ratio Warrant A Sell?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for AMBA Price per share = $54.46 Earnings per share = $1.612 ∴ Price-Earnings Ratio = $54.46 ÷ $1.612 = 33.8x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you inadvertently compared riskier firms with AMBA, then investors would naturally value AMBA at a higher price since it is a less risky investment. … Similarly, if you accidentally compared lower growth firms with AMBA, investors would also value AMBA at a higher price since it is a higher growth investment.

Simply Wall St -

Have Investors Already Priced In Ambarella Inc's (AMBA) Growth?

NasdaqGS:AMBA Future Profit Nov 23rd 17 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at AMBA future expectations. … If you believe AMBA is currently trading above its peers, selling high and buying it back up again when its price falls towards its real value can be profitable.

Simply Wall St -

AMBA Company Info

Map
Description

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 integrated HD video processing, image processing, computer vision functionality, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions enable the creation of video content for wearable cameras, automotive cameras, and professional and consumer Internet Protocol (IP) security cameras, as well as cameras incorporated into unmanned aerial vehicles in the camera market; and manage IP video traffic, broadcast encoding and transcoding, and IP video delivery applications in the infrastructure market. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and distributors. Ambarella, Inc. was founded in 2004 and is headquartered in Santa Clara, California.

Details
Name: Ambarella, Inc.
AMBA
Exchange: NasdaqGS
Founded: 2004
$1,295,991,549
33,410,455
Website: http://www.ambarella.com
Address: Ambarella, Inc.
3101 Jay Street,
Santa Clara,
California, 95054,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS AMBA Ordinary Shares Nasdaq Global Select US USD 10. Oct 2012
DB A8B Ordinary Shares Deutsche Boerse AG DE EUR 10. Oct 2012
LSE 0YU1 Ordinary Shares London Stock Exchange GB USD 10. Oct 2012
BMV AMBA N Ordinary Shares Bolsa Mexicana de Valores MX MXN 10. Oct 2012
Number of employees
Current staff
Staff numbers
713
Ambarella employees.
Industry
Semiconductors
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/07/22 21:37
End of day share price update: 2018/07/20 00:00
Last estimates confirmation: 2018/07/20
Last earnings update: 2018/04/30
Last annual earnings update: 2018/01/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.