NasdaqGS:AMBA

Stock Analysis Report

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Market Cap

US$3.6b

Last Updated

2021/07/31 06:08 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


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

Stable Share Price: AMBA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AMBA's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

4.5%

AMBA

2.3%

US Semiconductor

-0.5%

US Market


1 Year Return

117.5%

AMBA

55.5%

US Semiconductor

35.9%

US Market

Return vs Industry: AMBA exceeded the US Semiconductor industry which returned 55.5% over the past year.

Return vs Market: AMBA exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

AMBAIndustryMarket
7 Day4.5%2.3%-0.5%
30 Day-7.1%-0.6%0.3%
90 Day1.0%9.6%3.1%
1 Year117.5%117.5%57.5%55.5%38.0%35.9%
3 Year155.0%155.0%129.1%117.7%62.9%52.7%
5 Year68.1%68.1%298.0%261.0%121.7%97.3%

Long-Term 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 compared to its fair value and its price relative to the market?

7.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AMBA ($98.49) is trading above our estimate of fair value ($96.38)

Significantly Below Fair Value: AMBA is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AMBA is overvalued based on its PB Ratio (7.3x) compared to the US Semiconductor industry average (4.7x).


Future Growth

How is Ambarella forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

66.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMBA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: AMBA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AMBA's is expected to become profitable in the next 3 years.

Revenue vs Market: AMBA's revenue (18.6% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: AMBA's revenue (18.6% per year) is forecast to grow slower 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 (13.3%).


Past Performance

How has Ambarella performed over the past 5 years?

-67.5%

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 67.5% 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 (55.6%).


Return on Equity

High ROE: AMBA has a negative Return on Equity (-11.22%), as it is currently unprofitable.


Financial Health

How is Ambarella's financial position?


Financial Position Analysis

Short Term Liabilities: AMBA's short term assets ($508.5M) exceed its short term liabilities ($70.0M).

Long Term Liabilities: AMBA's short term assets ($508.5M) exceed its long term liabilities ($23.3M).


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


Dividend

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


Dividend Yield vs Market

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.


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

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

11.5yrs

Average management tenure


CEO

Fermi Wang (57 yo)

17.5yrs

Tenure

US$5,596,549

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

Compensation vs Market: Fermi's total compensation ($USD5.60M) is about average for companies of similar size in the US market ($USD5.31M).

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 (11.5 years average tenure).


Board Members

Experienced Board: AMBA's board of directors are considered experienced (7.3 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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.


Top Shareholders

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$3.573b
  • Shares outstanding: 36.28m
  • Website: https://www.ambarella.com

Number of Employees


Location

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

Listings


Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 06:08
End of Day Share Price2021/07/30 00:00
Earnings2021/04/30
Annual Earnings2021/01/31


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.