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AMBARELLA INC (AMBA) Stock Fundamental Analysis

NASDAQ:AMBA - Nasdaq - KYG037AX1015 - Common Stock - Currency: USD

63.14  -0.45 (-0.71%)

After market: 63.0001 -0.14 (-0.22%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to AMBA. AMBA was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While AMBA has a great health rating, there are worries on its profitability. AMBA shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

AMBA had positive earnings in the past year.
AMBA had a positive operating cash flow in the past year.
AMBA had negative earnings in each of the past 5 years.
AMBA had a positive operating cash flow in each of the past 5 years.
AMBA Yearly Net Income VS EBIT VS OCF VS FCFAMBA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M -100M -150M

1.2 Ratios

AMBA has a Return On Assets of -17.00%. This is amonst the worse of the industry: AMBA underperforms 80.91% of its industry peers.
The Return On Equity of AMBA (-20.86%) is worse than 76.36% of its industry peers.
Industry RankSector Rank
ROA -17%
ROE -20.86%
ROIC N/A
ROA(3y)-17.32%
ROA(5y)-13.28%
ROE(3y)-20.64%
ROE(5y)-15.87%
ROIC(3y)N/A
ROIC(5y)N/A
AMBA Yearly ROA, ROE, ROICAMBA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20 -30

1.3 Margins

Looking at the Gross Margin, with a value of 60.50%, AMBA belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
AMBA's Gross Margin has been stable in the last couple of years.
AMBA does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 60.5%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.19%
GM growth 5Y0.84%
AMBA Yearly Profit, Operating, Gross MarginsAMBA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50

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7

2. Health

2.1 Basic Checks

AMBA does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for AMBA has been increased compared to 1 year ago.
Compared to 5 years ago, AMBA has more shares outstanding
AMBA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
AMBA Yearly Shares OutstandingAMBA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
AMBA Yearly Total Debt VS Total AssetsAMBA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

2.2 Solvency

AMBA has an Altman-Z score of 12.35. This indicates that AMBA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.35, AMBA belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
There is no outstanding debt for AMBA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 12.35
ROIC/WACCN/A
WACC11.56%
AMBA Yearly LT Debt VS Equity VS FCFAMBA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

2.3 Liquidity

AMBA has a Current Ratio of 2.65. This indicates that AMBA is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.65, AMBA perfoms like the industry average, outperforming 44.55% of the companies in the same industry.
AMBA has a Quick Ratio of 2.36. This indicates that AMBA is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 2.36, AMBA perfoms like the industry average, outperforming 55.45% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.65
Quick Ratio 2.36
AMBA Yearly Current Assets VS Current LiabilitesAMBA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 108.54% over the past year.
AMBA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -36.54% yearly.
AMBA shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.82%.
AMBA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.49% yearly.
EPS 1Y (TTM)108.54%
EPS 3Y-64.76%
EPS 5Y-36.54%
EPS Q2Q%145.83%
Revenue 1Y (TTM)25.82%
Revenue growth 3Y-4.97%
Revenue growth 5Y4.49%
Sales Q2Q%62.77%

3.2 Future

Based on estimates for the next years, AMBA will show a very strong growth in Earnings Per Share. The EPS will grow by 105.25% on average per year.
The Revenue is expected to grow by 21.05% on average over the next years. This is a very strong growth
EPS Next Y-65.7%
EPS Next 2Y79.33%
EPS Next 3Y126.74%
EPS Next 5Y105.25%
Revenue Next Year20.5%
Revenue Next 2Y15.94%
Revenue Next 3Y18.36%
Revenue Next 5Y21.05%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
AMBA Yearly Revenue VS EstimatesAMBA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 200M 400M 600M 800M
AMBA Yearly EPS VS EstimatesAMBA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 1 2 3 4

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1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 902.00 indicates a quite expensive valuation of AMBA.
64.55% of the companies in the same industry are cheaper than AMBA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.91. AMBA is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 2629.65 indicates a quite expensive valuation of AMBA.
66.36% of the companies in the same industry are cheaper than AMBA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AMBA to the average of the S&P500 Index (21.85), we can say AMBA is valued expensively.
Industry RankSector Rank
PE 902
Fwd PE 2629.65
AMBA Price Earnings VS Forward Price EarningsAMBA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 500 1K 1.5K 2K 2.5K

4.2 Price Multiples

AMBA's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 114.17
EV/EBITDA N/A
AMBA Per share dataAMBA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

A more expensive valuation may be justified as AMBA's earnings are expected to grow with 126.74% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y79.33%
EPS Next 3Y126.74%

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0

5. Dividend

5.1 Amount

AMBA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AMBARELLA INC

NASDAQ:AMBA (5/22/2025, 8:00:00 PM)

After market: 63.0001 -0.14 (-0.22%)

63.14

-0.45 (-0.71%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-26 2025-02-26/amc
Earnings (Next)05-29 2025-05-29/amc
Inst Owners85.09%
Inst Owner Change-0.75%
Ins Owners2.81%
Ins Owner Change-0.99%
Market Cap2.68B
Analysts75
Price Target82.42 (30.54%)
Short Float %3.37%
Short Ratio1.7
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)486.64%
Min EPS beat(2)209.63%
Max EPS beat(2)763.65%
EPS beat(4)4
Avg EPS beat(4)286.97%
Min EPS beat(4)18.46%
Max EPS beat(4)763.65%
EPS beat(8)8
Avg EPS beat(8)158.13%
EPS beat(12)12
Avg EPS beat(12)113.38%
EPS beat(16)16
Avg EPS beat(16)90.53%
Revenue beat(2)2
Avg Revenue beat(2)4.04%
Min Revenue beat(2)2.54%
Max Revenue beat(2)5.55%
Revenue beat(4)3
Avg Revenue beat(4)9.43%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)30.49%
Revenue beat(8)3
Avg Revenue beat(8)3.93%
Revenue beat(12)3
Avg Revenue beat(12)2.09%
Revenue beat(16)6
Avg Revenue beat(16)1.63%
PT rev (1m)-13.71%
PT rev (3m)-11.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)124.98%
EPS NY rev (1m)7%
EPS NY rev (3m)114.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)12.71%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)4.19%
Valuation
Industry RankSector Rank
PE 902
Fwd PE 2629.65
P/S 9.4
P/FCF 114.17
P/OCF 79.14
P/B 4.77
P/tB 12.72
EV/EBITDA N/A
EPS(TTM)0.07
EY0.11%
EPS(NY)0.02
Fwd EY0.04%
FCF(TTM)0.55
FCFY0.88%
OCF(TTM)0.8
OCFY1.26%
SpS6.72
BVpS13.24
TBVpS4.96
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -17%
ROE -20.86%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 60.5%
FCFM 8.23%
ROA(3y)-17.32%
ROA(5y)-13.28%
ROE(3y)-20.64%
ROE(5y)-15.87%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.19%
GM growth 5Y0.84%
F-Score6
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 39.84%
Cap/Sales 3.64%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.65
Quick Ratio 2.36
Altman-Z 12.35
F-Score6
WACC11.56%
ROIC/WACCN/A
Cap/Depr(3y)54.66%
Cap/Depr(5y)54.82%
Cap/Sales(3y)4.47%
Cap/Sales(5y)3.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)108.54%
EPS 3Y-64.76%
EPS 5Y-36.54%
EPS Q2Q%145.83%
EPS Next Y-65.7%
EPS Next 2Y79.33%
EPS Next 3Y126.74%
EPS Next 5Y105.25%
Revenue 1Y (TTM)25.82%
Revenue growth 3Y-4.97%
Revenue growth 5Y4.49%
Sales Q2Q%62.77%
Revenue Next Year20.5%
Revenue Next 2Y15.94%
Revenue Next 3Y18.36%
Revenue Next 5Y21.05%
EBIT growth 1Y20.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-505.48%
EBIT Next 3Y67.17%
EBIT Next 5Y58.57%
FCF growth 1Y232.84%
FCF growth 3Y-6.94%
FCF growth 5Y-9.01%
OCF growth 1Y77.86%
OCF growth 3Y-4.46%
OCF growth 5Y-3%