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AMBA

AmbarellaNasdaqGS:AMBA Stock Report

Market Cap

US$6.6b

7D

-0.3%

1Y

128.1%

Updated

01 Dec, 2021

Data

Company Financials +
AMBA fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
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

NVIDIA

NasdaqGS:NVDA

US$816.9b

Broadcom

NasdaqGS:AVGO

US$227.9b

QUALCOMM

NasdaqGS:QCOM

US$202.2b

Advanced Micro Devices

NasdaqGS:AMD

US$191.2b

Price History & Performance

Summary of all time highs, changes and price drops for Ambarella
Historical stock prices
Current Share PriceUS$179.52
52 Week HighUS$207.00
52 Week LowUS$77.06
Beta1.11
1 Month Change-3.40%
3 Month Change36.04%
1 Year Change128.08%
3 Year Change346.57%
5 Year Change213.79%
Change since IPO2,862.38%

Recent News & Updates

Oct 17

Ambarella: Even With Restrictions In China, I Buy Its Face Recognition Algorithms

Ambarella develops low-power system-on-a-chip semiconductors that are used for artificial intelligence processing of images and videos. The company’s systems offer computer vision algorithms, object detection, terrain mapping, and face recognition. The company’s technology is usually connected to data centers in the cloud. If the company designs and manufactures a new CVflow-architecture, which exactly matches the needs of clients, I would expect demand for AMBA’s products. Assuming that in the next five years, AMBA will deliver new and innovative solutions, I developed my own DCF model. My figures include a decline in sales growth from 45% in 2022 to 20% in 2026. The EBITDA margin would increase from 21% in 2022 to 27% in 2026. I also take into account that AMBA could penetrate new markets such as the automotive OEM and robotics markets. The company appears to be increasing its R&D expenditures in these new markets.

Sep 09

Ambarella Takes Off In More Ways Than One

AMBA appreciated by almost a third after the latest report, showing how much can change in just one week. The stock had been oscillating for months, but a couple of factors combined to make the stock pop the way it did. AMBA was already trading at high multiples before the latest moves, but multiples have gotten even higher since then. The bulls have a lot in their favor, but that does not mean everyone is likely to get on board regardless.

Shareholder Returns

AMBAUS SemiconductorUS Market
7D-0.3%0.9%-2.8%
1Y128.1%53.3%20.0%

Return vs Industry: AMBA exceeded the US Semiconductor industry which returned 53.3% over the past year.

Return vs Market: AMBA exceeded the US Market which returned 20% over the past year.

Price Volatility

Is AMBA's price volatile compared to industry and market?
AMBA volatility
AMBA Average Weekly Movement10.6%
Semiconductor Industry Average Movement6.3%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: AMBA is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: AMBA's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
2004809Fermi 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 enable the creation of video content for wearable cameras; automotive cameras; drones; virtual reality cameras; and internet protocol security cameras for professional use, and home security and monitoring, as well as robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras.

Ambarella Fundamentals Summary

How do Ambarella's earnings and revenue compare to its market cap?
AMBA fundamental statistics
Market CapUS$6.58b
Earnings (TTM)-US$47.54m
Revenue (TTM)US$267.69m

24.6x

P/S Ratio

-138.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AMBA income statement (TTM)
RevenueUS$267.69m
Cost of RevenueUS$101.91m
Gross ProfitUS$165.78m
ExpensesUS$213.32m
Earnings-US$47.54m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

Nov 30, 2021

Earnings per share (EPS)-1.30
Gross Margin61.93%
Net Profit Margin-17.76%
Debt/Equity Ratio0%

How did AMBA perform over the long term?

See historical performance and comparison

Valuation

Is Ambarella undervalued compared to its fair value and its price relative to the market?

13.08x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AMBA ($179.52) is trading above our estimate of fair value ($120.95)

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 (13.1x) compared to the US Semiconductor industry average (4.5x).


Future Growth

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

66.1%

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 (17.8% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: AMBA's revenue (17.8% 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 (15.4%).


Past Performance

How has Ambarella performed over the past 5 years?

-64.8%

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 64.8% 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 (80.5%).


Return on Equity

High ROE: AMBA has a negative Return on Equity (-9.45%), as it is currently unprofitable.


Financial Health

How is Ambarella's financial position?


Financial Position Analysis

Short Term Liabilities: AMBA's short term assets ($534.0M) exceed its short term liabilities ($85.5M).

Long Term Liabilities: AMBA's short term assets ($534.0M) exceed its long term liabilities ($21.5M).


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


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?

11.8yrs

Average management tenure


CEO

Fermi Wang (57 yo)

17.83yrs

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 ($USD5.60M) is about average for companies of similar size in the US market ($USD6.24M).

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 (11.8 years average tenure).


Board Members

Experienced Board: AMBA's board of directors are considered experienced (7.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 5.9%.


Top Shareholders

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
  • Market Cap: US$6.582b
  • Shares outstanding: 36.66m
  • Website: https://www.ambarella.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 00:06
End of Day Share Price2021/11/30 00:00
Earnings2021/07/31
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.