(AMBA) Ambarella - Overview

Sector: Technology | Industry: Semiconductor Equipment & Materials | Exchange: NASDAQ (USA) | Market Cap: 3.554m USD | Total Return: 31.5% in 12m

Video Processors, AI Semiconductors, Imaging Software, Radar Sensors
Total Rating 34
Safety 32
Buy Signal 0.52
Semiconductor Equipment & Materials
Industry Rotation: -9.4
Market Cap: 3.55B
Avg Turnover: 62.1M
Risk 3d forecast
Volatility57.9%
VaR 5th Pctl9.16%
VaR vs Median-4.53%
Reward TTM
Sharpe Ratio0.69
Rel. Str. IBD70.7
Rel. Str. Peer Group13.7
Character TTM
Beta2.740
Beta Downside2.916
Hurst Exponent0.403
Drawdowns 3y
Max DD54.85%
CAGR/Max DD0.10
CAGR/Mean DD0.18
EPS (Earnings per Share) EPS (Earnings per Share) of AMBA over the last years for every Quarter: "2021-04": 0.23, "2021-07": 0.35, "2021-10": 0.57, "2022-01": 0.45, "2022-04": 0.44, "2022-07": 0.2, "2022-10": 0.24, "2023-01": 0.23, "2023-04": -0.15, "2023-07": -0.15, "2023-10": -0.28, "2024-01": -0.24, "2024-04": -0.26, "2024-07": -0.13, "2024-10": -0.58, "2025-01": 0.11, "2025-04": 0.07, "2025-07": 0.15, "2025-10": 0.27, "2026-01": 0.13,
Last SUE: 0.94
Qual. Beats: 14
Revenue Revenue of AMBA over the last years for every Quarter: 2021-04: 70.133, 2021-07: 79.327, 2021-10: 92.167, 2022-01: 90.229, 2022-04: 90.305, 2022-07: 80.884, 2022-10: 83.096, 2023-01: 83.321, 2023-04: 62.142, 2023-07: 62.121, 2023-10: 50.595, 2024-01: 51.616, 2024-04: 54.473, 2024-07: 63.724, 2024-10: 82.653, 2025-01: 84.015, 2025-04: 85.872, 2025-07: 95.511, 2025-10: 108.452, 2026-01: 100.867,
Rev. CAGR: 14.24%
Rev. Trend: 59.7%
Last SUE: 0.47
Qual. Beats: 0

Warnings

Interest Coverage Ratio -2.6 is critical

Altman Z'' -1.60 < 1.0 - financial distress zone

Tailwinds

Confidence

Description: AMBA Ambarella

Ambarella, Inc. (AMBA) specializes in the design of low-power system-on-a-chip (SoC) solutions and AI-driven software for edge computing and intelligent automation. The company leverages its proprietary CVflow architecture to integrate high-definition video processing, neural network acceleration, and system control into single-chip hardware. These technologies serve diverse end-markets, including automotive safety systems, autonomous driving domain controllers, IoT security infrastructure, and healthcare imaging.

The company operates within the fabless semiconductor business model, which allows it to focus on research and development while outsourcing physical chip fabrication to third-party foundries. This sector is characterized by high R&D intensity and a shifting focus toward computer vision as automotive manufacturers transition to Level 2+ and Level 3 autonomous driving standards. Ambarella generates revenue through direct sales and distributors, targeting original equipment manufacturers (OEMs) and Tier-1 automotive suppliers globally.

Investors can further analyze these technical competitive advantages by reviewing the detailed performance metrics available on ValueRay.

Headlines to Watch Out For
  • Automotive CV3-AD domain controller adoption drives high-margin revenue growth
  • Shift from consumer video to edge AI software increases enterprise margins
  • Inventory normalization in IoT security market stabilizes quarterly revenue cycles
  • Geopolitical trade restrictions on high-performance chips impact Asia-Pacific distribution
  • Research and development spending on neural processors pressures short-term profitability
Piotroski VR‑10 (Strict) 5.0
Net Income: -75.9m TTM > 0 and > 6% of Revenue
FCF/TA: 0.08 > 0.02 and ΔFCF/TA 4.87 > 1.0
NWC/Revenue: 59.47% < 20% (prev 70.05%; Δ -10.59% < -1%)
CFO/TA 0.09 > 3% & CFO 73.5m > Net Income -75.9m
Net Debt/EBITDA: error (EBITDA <= 0)
Current Ratio: 2.31 > 1.5 & < 3
Outstanding Shares: last quarter (43.2m) vs 12m ago 3.24% < -2%
Gross Margin: 59.19% > 18% (prev 0.60%; Δ 5.86k% > 0.5%)
Asset Turnover: 52.53% > 50% (prev 41.35%; Δ 11.18% > 0%)
Interest Coverage Ratio: -2.57 > 6 (EBITDA TTM -69.1m / Interest Expense TTM 20.7m)
Altman Z'' -1.60
A: 0.29 (Total Current Assets 410.3m - Total Current Liabilities 177.9m) / Total Assets 798.6m
B: -0.41 (Retained Earnings -327.9m / Total Assets 798.6m)
C: -0.07 (EBIT TTM -53.0m / Avg Total Assets 743.8m)
D: -1.61 (Book Value of Equity -327.3m / Total Liabilities 203.8m)
Altman-Z'' = -1.60 = D
Beneish M -3.03
DSRI: 0.96 (Receivables 39.2m/29.8m, Revenue 390.7m/284.9m)
GMI: 1.02 (GM 59.19% / 60.50%)
AQI: 0.89 (AQ_t 0.46 / AQ_t-1 0.51)
SGI: 1.37 (Revenue 390.7m / 284.9m)
TATA: -0.19 (NI -75.9m - CFO 73.5m) / TA 798.6m)
Beneish M = -3.03 (Cap -4..+1) = AA
What is the price of AMBA shares? As of May 22, 2026, the stock is trading at USD 83.64 with a total of 645,141 shares traded.
Over the past week, the price has changed by +3.21%, over one month by +39.45%, over three months by +24.59% and over the past year by +31.53%.
Is AMBA a buy, sell or hold? Ambarella has received a consensus analysts rating of 3.87. Therefore, it is recommended to buy AMBA.
  • StrongBuy: 5
  • Buy: 3
  • Hold: 7
  • Sell: 0
  • StrongSell: 0
What are the forecasts/targets for the AMBA price?
Analysts Target Price 87.9 5.1%
Ambarella (AMBA) - Fundamental Data Overview as of 18 May 2026
P/E Forward = 102.0408
P/S = 9.0962
P/B = 5.6187
P/EG = 4.9654
Revenue TTM = 390.7m USD
EBIT TTM = -53.0m USD
EBITDA TTM = -69.1m USD
Long Term Debt = 13.4m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 2.03m USD (from shortTermDebt, last quarter)
Debt = 13.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -299.1m USD (recalculated: Debt 13.4m - CCE 312.6m)
Enterprise Value = 3.25b USD (3.55b + Debt 13.4m - CCE 312.6m)
Interest Coverage Ratio = -2.57 (Ebit TTM -53.0m / Interest Expense TTM 20.7m)
EV/FCF = 49.28x (Enterprise Value 3.25b / FCF TTM 66.1m)
FCF Yield = 2.03% (FCF TTM 66.1m / Enterprise Value 3.25b)
FCF Margin = 16.91% (FCF TTM 66.1m / Revenue TTM 390.7m)
Net Margin = -19.42% (Net Income TTM -75.9m / Revenue TTM 390.7m)
Gross Margin = 59.19% ((Revenue TTM 390.7m - Cost of Revenue TTM 159.4m) / Revenue TTM)
Gross Margin QoQ = 57.66% (prev 60.25%)
Tobins Q-Ratio = 4.08 (Enterprise Value 3.25b / Total Assets 798.6m)
 Interest Expense / Debt = 153.9% (Interest Expense 20.7m / Debt 13.4m)
 Taxrate = 21.0% (US default 21%)
NOPAT = -41.9m (EBIT -53.0m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 2.31 (Total Current Assets 410.3m / Total Current Liabilities 177.9m)
Debt / Equity = 0.02 (Debt 13.4m / totalStockholderEquity, last quarter 594.8m)
 Debt / EBITDA = 4.33 (negative EBITDA) (Net Debt -299.1m / EBITDA -69.1m)
 Debt / FCF = -4.53 (Net Debt -299.1m / FCF TTM 66.1m)
Total Stockholder Equity = 583.5m (last 4 quarters mean from totalStockholderEquity)
RoA = -10.20% (Net Income -75.9m / Total Assets 798.6m)
RoE = -13.00% (Net Income TTM -75.9m / Total Stockholder Equity 583.5m)
RoCE = -8.88% (EBIT -53.0m / Capital Employed (Equity 583.5m + L.T.Debt 13.4m))
 RoIC = -7.18% (negative operating profit) (NOPAT -41.9m / Invested Capital 583.5m)
 WACC = 15.56% (E(3.55b)/V(3.57b) * Re(15.62%) + (debt cost/tax rate unavailable))
Discount Rate = 15.62% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 3.40%
[DCF] Terminal Value 44.56% ; FCFF base≈49.0m ; Y1≈32.2m ; Y5≈14.7m
[DCF] Fair Price = 9.83 (EV 131.4m - Net Debt -299.1m = Equity 430.5m / Shares 43.8m; r=15.56% [WACC]; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.94 | # QB: 14
Revenue Correlation: 59.70 | Revenue CAGR: 14.24% | SUE: 0.47 | # QB: 0
EPS current Quarter (2026-07-31): EPS=0.16 | Chg30d=+0.00% | Revisions=+45% | Analysts=12
EPS current Year (2027-01-31): EPS=0.75 | Chg30d=+0.00% | Revisions=+64% | GrowthEPS=+21.1% | GrowthRev=+12.8%
EPS next Year (2028-01-31): EPS=1.09 | Chg30d=+0.00% | Revisions=+14% | GrowthEPS=+44.6% | GrowthRev=+13.7%
[Analyst] Revisions Ratio: +64%