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AMBA

Ambarella NasdaqGS:AMBA Stock Report

Last Price

US$62.67

Market Cap

US$2.4b

7D

4.6%

1Y

-58.3%

Updated

05 Oct, 2022

Data

Company Financials +
AMBA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance0/6
Financial Health6/6
Dividends0/6

AMBA Stock Overview

Ambarella, Inc. develops semiconductor solutions for video that enable high-definition (HD) and ultra HD compression, image processing, and deep neural network processing worldwide.

Ambarella Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ambarella
Historical stock prices
Current Share PriceUS$62.67
52 Week HighUS$227.59
52 Week LowUS$56.05
Beta1.52
1 Month Change-0.30%
3 Month Change-9.72%
1 Year Change-58.27%
3 Year Change20.80%
5 Year Change21.67%
Change since IPO934.16%

Recent News & Updates

Shareholder Returns

AMBAUS SemiconductorUS Market
7D4.6%4.3%4.4%
1Y-58.3%-22.4%-18.2%

Return vs Industry: AMBA underperformed the US Semiconductor industry which returned -22.4% over the past year.

Return vs Market: AMBA underperformed the US Market which returned -18.2% over the past year.

Price Volatility

Is AMBA's price volatile compared to industry and market?
AMBA volatility
AMBA Average Weekly Movement9.9%
Semiconductor Industry Average Movement7.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: AMBA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: AMBA's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2004899Fermi Wanghttps://www.ambarella.com

Ambarella, Inc. develops semiconductor solutions for video that enable high-definition (HD) and ultra HD compression, image processing, and deep neural network processing worldwide. The company’s system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions are used in automotive cameras, such as automotive video recorders, electronic mirrors, front advanced driver assistance system camera, cabin monitoring system and driver monitoring system camera, and central domain controllers for autonomous vehicle; and professional and home internet protocol security camera; robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras, as well as cameras for the home, public spaces, and consumer leisure comprising wearable body cameras, sports action cameras, social media cameras, drones for capturing aerial video or photographs, video conferencing, and virtual reality applications.

Ambarella Fundamentals Summary

How do Ambarella's earnings and revenue compare to its market cap?
AMBA fundamental statistics
Market CapUS$2.41b
Earnings (TTM)-US$42.91m
Revenue (TTM)US$353.59m

6.8x

P/S Ratio

-56.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AMBA income statement (TTM)
RevenueUS$353.59m
Cost of RevenueUS$131.03m
Gross ProfitUS$222.56m
Other ExpensesUS$265.47m
Earnings-US$42.91m

Last Reported Earnings

Jul 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.12
Gross Margin62.94%
Net Profit Margin-12.14%
Debt/Equity Ratio0%

How did AMBA perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AMBA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AMBA?

Other financial metrics that can be useful for relative valuation.

AMBA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.3x
Enterprise Value/EBITDA-72.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does AMBA's PS Ratio compare to its peers?

AMBA PS Ratio vs Peers
The above table shows the PS ratio for AMBA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average5.4x
PI Impinj
10.8x21.0%US$2.3b
CSIQ Canadian Solar
0.4x11.7%US$2.4b
SMTC Semtech
2.6x-0.7%US$2.0b
RMBS Rambus
7.8x12.0%US$3.1b
AMBA Ambarella
6.8x22.2%US$2.4b

Price-To-Sales vs Peers: AMBA is expensive based on its Price-To-Sales Ratio (6.8x) compared to the peer average (5.4x).


Price to Earnings Ratio vs Industry

How does AMBA's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Sales vs Industry: AMBA is expensive based on its Price-To-Sales Ratio (6.8x) compared to the US Semiconductor industry average (3.2x)


Price to Sales Ratio vs Fair Ratio

What is AMBA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AMBA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.8x
Fair PS Ratio9.5x

Price-To-Sales vs Fair Ratio: AMBA is good value based on its Price-To-Sales Ratio (6.8x) compared to the estimated Fair Price-To-Sales Ratio (9.5x).


Share Price vs Fair Value

What is the Fair Price of AMBA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AMBA ($62.67) is trading below our estimate of fair value ($153.16)

Significantly Below Fair Value: AMBA is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Ambarella forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


61.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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 (22.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: AMBA's revenue (22.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMBA's Return on Equity is forecast to be low in 3 years time (15.1%).


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Past Performance

How has Ambarella performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-38.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AMBA is currently unprofitable.

Growing Profit Margin: AMBA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AMBA is unprofitable, and losses have increased over the past 5 years at a rate of 38.9% 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 (49.2%).


Return on Equity

High ROE: AMBA has a negative Return on Equity (-7.42%), as it is currently unprofitable.


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Financial Health

How is Ambarella's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: AMBA's short term assets ($282.9M) exceed its short term liabilities ($77.5M).

Long Term Liabilities: AMBA's short term assets ($282.9M) exceed its long term liabilities ($18.8M).


Debt to Equity History and Analysis

Debt Level: AMBA is debt free.

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


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable AMBA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AMBA is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 26% per year.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Ambarella Dividend Yield vs Market
How does Ambarella dividend yield compare to the market?
SegmentDividend Yield
Company (Ambarella)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (Semiconductor)2.0%
Analyst forecast in 3 Years (Ambarella)0%

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

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


Stability and Growth of Payments

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AMBA has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

12.6yrs

Average management tenure


CEO

Fermi Wang (58 yo)

18.75yrs

Tenure

US$6,205,867

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. Prior to co-founding...


CEO Compensation Analysis

Fermi Wang's Compensation vs Ambarella Earnings
How has Fermi Wang's remuneration changed compared to Ambarella's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 31 2022n/an/a

-US$43m

Apr 30 2022n/an/a

-US$26m

Jan 31 2022US$6mUS$550k

-US$26m

Oct 31 2021n/an/a

-US$30m

Jul 31 2021n/an/a

-US$48m

Apr 30 2021n/an/a

-US$55m

Jan 31 2021n/an/a

-US$60m

Oct 31 2020n/an/a

-US$60m

Jul 31 2020n/an/a

-US$48m

Apr 30 2020n/an/a

-US$43m

Jan 31 2020US$5mUS$368k

-US$45m

Oct 31 2019n/an/a

-US$36m

Jul 31 2019n/an/a

-US$41m

Apr 30 2019n/an/a

-US$38m

Jan 31 2019US$4mUS$357k

-US$30m

Oct 31 2018n/an/a

-US$25m

Jul 31 2018n/an/a

-US$4m

Apr 30 2018n/an/a

US$6m

Jan 31 2018US$5mUS$340k

US$19m

Oct 31 2017n/an/a

US$36m

Jul 31 2017n/an/a

US$53m

Apr 30 2017n/an/a

US$59m

Jan 31 2017US$2mUS$340k

US$58m

Oct 31 2016n/an/a

US$45m

Jul 31 2016n/an/a

US$45m

Apr 30 2016n/an/a

US$59m

Jan 31 2016US$6mUS$340k

US$77m

Compensation vs Market: Fermi's total compensation ($USD6.21M) is about average for companies of similar size in the US market ($USD6.80M).

Compensation vs Earnings: Fermi's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: AMBA's management team is seasoned and experienced (12.6 years average tenure).


Board Members

Experienced Board: AMBA's board of directors are seasoned and experienced ( 10.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

NasdaqGS:AMBA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
26 Sep 22SellUS$364,256Leslie KohnIndividual6,179US$58.95
29 Mar 22SellUS$833,760Yun-Lung ChenIndividual8,000US$104.22
14 Mar 22SellUS$251,740Feng-Ming WangIndividual2,982US$84.42
14 Mar 22SellUS$111,012Chi-Hong JuIndividual1,315US$84.42
14 Mar 22SellUS$154,067Leslie KohnIndividual1,825US$84.42
14 Mar 22SellUS$134,650Chan LeeIndividual1,595US$84.42
14 Mar 22SellUS$60,191Christopher DayIndividual713US$84.42
14 Mar 22SellUS$59,263Kevin EichlerIndividual702US$84.42
07 Mar 22BuyUS$1,014,856Andrew VerhalenIndividual11,455US$88.60
03 Mar 22SellUS$1,360,027Yun-Lung ChenIndividual14,000US$97.14
30 Dec 21SellUS$110,475Chi-Hong JuIndividual536US$206.11
27 Dec 21SellUS$148,420Christopher DayIndividual724US$205.00
27 Dec 21SellUS$84,410Chi-Hong JuIndividual402US$209.98
21 Dec 21SellUS$158,599Elizabeth SchwartingIndividual815US$194.60
07 Dec 21SellUS$212,622Teresa MengIndividual959US$221.71
07 Dec 21SellUS$688,205Christopher DayIndividual3,303US$219.20
07 Dec 21SellUS$221,903Chi-Hong JuIndividual1,000US$223.00
07 Dec 21SellUS$38,214Christopher DayIndividual193US$198.00
03 Dec 21SellUS$2,040,352Yun-Lung ChenIndividual10,287US$199.04

Ownership Breakdown

What is the ownership structure of AMBA?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders2,093,5875.4%
General Public5,915,45215.4%
Institutions30,407,72579.2%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.


Top Shareholders

Top 25 shareholders own 55.79% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.23%
BlackRock, Inc.
3,931,326$246.4m-2.4%0.01%
9.09%
The Vanguard Group, Inc.
3,491,715$218.8m-0.67%no data
4.27%
Macquarie Investment Management Business Trust
1,640,233$102.8m62.15%0.11%
3.22%
State Street Global Advisors, Inc.
1,238,674$77.6m4.74%no data
2.41%
Invesco Ltd.
924,278$57.9m-28.45%0.02%
2.34%
Leslie Kohn
899,478$56.4m-0.42%no data
1.99%
Point72 Asset Management, L.P.
764,472$47.9m600.99%0.12%
1.81%
Feng-Ming Wang
693,625$43.5m0.54%no data
1.72%
Geode Capital Management, LLC
659,818$41.4m2.32%0.01%
1.62%
Baillie Gifford & Co.
620,934$38.9m9.9%0.02%
1.57%
AXA Investment Managers S.A.
602,195$37.7m-1.01%0.08%
1.49%
Janus Henderson Group plc
571,921$35.8m2.91%0.02%
1.44%
Dimensional Fund Advisors LP
552,978$34.7m-4.63%0.01%
1.31%
Eaton Vance Management
504,940$31.6m-1.04%0.01%
1.29%
Polar Capital Holdings plc
494,095$31.0m11.56%0.16%
1.25%
Renaissance Technologies LLC
480,100$30.1m-15.93%0.03%
1.24%
Credit Suisse Asset Management (Switzerland)
477,150$29.9m1789.48%0.03%
1.09%
Norges Bank Investment Management
419,054$26.3m0%no data
0.99%
Pinnacle Associates, Ltd.
378,440$23.7m10.66%0.5%
0.98%
Pacific Investment Management Company LLC
374,884$23.5m0%0.11%
0.97%
RobecoSAM AG
372,300$23.3m33.2%0.21%
0.94%
Northern Trust Global Investments
361,907$22.7m-0.4%no data
0.87%
Morgan Stanley, Investment Banking and Brokerage Investments
335,719$21.0m2.26%no data
0.84%
Voloridge Investment Management, LLC
323,267$20.3m-20.94%0.1%
0.83%
Stephens Investment Management Group, LLC
318,002$19.9m20.67%0.34%

Company Information

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


Key Information

  • Name: Ambarella, Inc.
  • Ticker: AMBA
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: US$2.408b
  • Shares outstanding: 38.42m
  • 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
A2MB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 25 REPR 1 COMBRBRLJan 2022

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/07/31
Annual Earnings2022/01/31


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.