AMBA

Ambarella

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Semiconductor Equipment & Materials

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

06/04/26

Business Summary

Darden Restaurants operates scaled, branded dining concepts that convert consistent foot traffic into predictable cash flows through standardized menus, centralized procurement, and national marketing leverage. Its moat is rooted in brand equity, real estate positioning, and purchasing scale that independent restaurants cannot replicate. The company generates cash through high-volume table turns, disciplined cost controls, and margin capture across multiple restaurant banners. Scale allows it to negotiate supply contracts, optimize labor models, and spread fixed costs across a large revenue base, reinforcing durable operating economics.

VALUATION

P/E

-

Market Cap ($M USD)

$2,311

Forward P/E

48.6

PEG

-

PRICE TO SALES

5.8

PRICE TO BOOK

3.9

EV / EBITDA

-35.3

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

-$1.78

Next Year EPS Growth Estimate

$1.09

Next Year Revenue Growth Estimate

13.90%

Return on Equity (ROE)

-12.70%

Operating Margin

-21.10%

Debt-to-Equity

0

Piotroski F-Score

4

Altman Z-Score

6.7

Return on Invested Capital (ROIC)

-12.90%%

Current Ratio

2.3

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 20.3x earnings and 16.9x forward earnings, DRI is priced like a stable compounder, not a distressed cyclical, yet the balance sheet tells a more cautious story. The Altman Z-Score of 2.4 sits in the grey zone, signaling moderate financial stress risk rather than fortress-level safety, and the 0.4 current ratio reinforces liquidity tightness. A PEG Forward of 2.1 suggests investors are paying a premium relative to growth, especially with EPS Next Year estimated at $9.54 versus current EPS of 14.10. This is not a screaming bargain; it’s a quality operator trading at a reasonable but not discounted multiple, with valuation dependent on execution rather than margin of safety.

AI Exposure / Tech Reliance

As a Consumer Cyclical restaurant operator, DRI is not inherently AI-driven, but technology integration in ordering, labor scheduling, and supply chain optimization is critical to defending margins. The Restaurants industry is being reshaped by digital ordering ecosystems and data-driven pricing, which can protect operating leverage. Companies that standardize operations across scale can embed tech efficiencies faster than independents, reinforcing competitive positioning.

The Bull Case

A GARP investor will be drawn to the 15.60% ROIC, which signals strong capital allocation and efficient reinvestment relative to cost of capital. The Piotroski F-Score of 7 indicates fundamentally healthy operations, while an Operating Margin of 52.60% suggests exceptional operating efficiency for the industry. A 2.9 yield combined with a Dividend Per Share of 3.10% and a 5-year dividend growth rate of 5 shows a shareholder-return orientation layered on top of profitability. Trading at 16.9x forward earnings with a $22,035M market cap, this is a scaled operator that can compound capital if margins and returns persist at current levels.

The Bear Case

The red flags are not subtle. Debt/Equity at 11.80% combined with a razor-thin 0.4 current ratio exposes balance sheet fragility, and the Altman Z-Score of 2.4 confirms financial cushion is limited. A Short % of Float at 55.00% is extraordinarily high and signals aggressive bearish positioning, while a PEG of 2.1 implies investors are overpaying relative to growth expectations. Return on Equity of 3.70% is underwhelming relative to the Price/Book of 10.5, suggesting equity capital is not generating outsized returns. Add in Sales Growth Next Year listed at $11.37 without context of acceleration, and the growth narrative looks less compelling than the valuation suggests.

Market Sentiment & Smart Money

Short Interest %

6.10%

Analyst Consensus

1.87

Average Analyst Price Target

$92.64

Institutional Ownership %

88.20%

1-Year Beta

2.33

Insider Buying % (6 Mo)

4.90%%

Distance to 52-Week High

54.60%%

Distance to 52-Week Low

129.30%%