(AMBA) Ambarella - Overview
Sector: Technology | Industry: Semiconductor Equipment & Materials | Exchange: NASDAQ (USA) | Market Cap: 4.104m USD | Total Return: 47.2% in 12m
Avg Turnover: 72.0M
Qual. Beats: 14
Rev. Trend: 59.7%
Qual. Beats: 0
Warnings
High Debt/EBITDA (5.3) with thin interest coverage (-4.0)
Interest Coverage Ratio -4.0 is critical
Altman Z'' -1.86 < 1.0 - financial distress zone
Choppy
Tailwinds
Supp Ema8, Confidence
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.
- 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
| 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: -3.99 > 6 (EBITDA TTM -56.9m / Interest Expense TTM 20.7m) |
| 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: -0.11 (EBIT TTM -82.5m / Avg Total Assets 743.8m) |
| D: -1.61 (Book Value of Equity -327.3m / Total Liabilities 203.8m) |
| Altman-Z'' = -1.86 = D |
| 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 |
As of May 29, 2026, the stock is trading at USD 91.84 with a total of 2,627,890 shares traded.
Over the past week, the price has changed by +10.65%,
over one month by +44.06%,
over three months by +52.20% and
over the past year by +47.18%.
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
| Analysts Target Price | 87.9 | -4.3% |
P/E Forward = 125.0
P/S = 10.1688
P/B = 6.8964
P/EG = 4.9654
Revenue TTM = 390.7m USD
EBIT TTM = -82.5m USD
EBITDA TTM = -56.9m USD
Long Term Debt = 11.4m USD (estimated: total debt 13.4m - short term 2.03m)
Short Term Debt = 2.03m USD (from shortTermDebt, last quarter)
Debt = 13.4m USD (from shortLongTermDebtTotal, last quarter) (leases 13.4m already included)
Net Debt = -299.1m USD (calculated: Debt 13.4m - CCE 312.6m)
Enterprise Value = 3.80b USD (4.10b + Debt 13.4m - CCE 312.6m)
Interest Coverage Ratio = -3.99 (Ebit TTM -82.5m / Interest Expense TTM 20.7m)
EV/FCF = 57.61x (Enterprise Value 3.80b / FCF TTM 66.1m)
FCF Yield = 1.74% (FCF TTM 66.1m / Enterprise Value 3.80b)
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 = 4.76 (Enterprise Value 3.80b / Total Assets 798.6m)
Interest Expense / Debt = 153.9% (Interest Expense 20.7m / Debt 13.4m)
Taxrate = 21.0% (US default 21%)
NOPAT = -65.2m (EBIT -82.5m * (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 = 5.25 (negative EBITDA) (Net Debt -299.1m / EBITDA -56.9m)
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 = -8.32% (Net Income TTM -75.9m / Total Stockholder Equity 911.5m)
RoCE = -8.94% (EBIT -82.5m / Capital Employed (Equity 911.5m + L.T.Debt 11.4m))
RoIC = -21.02% (negative operating profit) (NOPAT -65.2m / Invested Capital 310.1m)
WACC = 15.42% (E(4.10b)/V(4.12b) * Re(15.47%) + (debt cost/tax rate unavailable))
Discount Rate = 15.47% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 100.00 | Cagr: 3.40%
[DCF] Terminal Value 58.50% ; FCFF base≈49.0m ; Y1≈56.2m ; Y5≈82.7m
[DCF] Fair Price = 19.30 (EV 547.5m - Net Debt -299.1m = Equity 846.6m / Shares 43.9m; r=15.42% [WACC]; 5y FCF grow 15.0% → 2.50% )
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%