AMBA

Ambarella, Inc.

Fundamental data last updated:June 6, 2026

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company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/27/2026

Business Summary

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 are used in automotive cameras, such as automotive video recorders, electronic mirrors, front advanced driver assistance system camera, cabin monitoring system and driver monitoring system camera, and central domain controllers for autonomous vehicle; and professional and home internet protocol security camera; robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras, as well as cameras for the home, public spaces, and consumer leisure comprising wearable body cameras, sports action cameras, social media cameras, drones for capturing aerial video or photographs, video conferencing, and virtual reality applications. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and distributors. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.

 


VALUATION

P/E

-57.51

Market Cap ($M USD)

$4.03B

Forward P/E

21.11

PEG

0.06

PRICE TO SALES

9.94

PRICE TO BOOK

6.61

EV / EBITDA

-56.56

5-Year Average P/E

Free Cash Flow Yield

1.64%

DCF Value

$-25.44

Graham Number

N/A

Price to FCF

60.99

EV to FCF

59.45

Earnings Yield

-1.74%

FCF Yield

1.64%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$1.60

Next Year EPS Growth Estimate

$4.35

Next Year Revenue Growth Estimate

$94.00B

Return on Equity (ROE)

-11.77%

FREE CASH FLOW

Operating Margin

-18.78%

Debt-to-Equity

0.02

Piotroski F-Score

3

Altman Z-Score

12.75

Return on Invested Capital (ROIC)

-12.12%

Current Ratio

2.43

Quick Ratio

1.95

Net Debt to EBITDA

1.46

Interest Coverage

0.00

Gross Profit margin

58.82%

FCF PER SHARE

$1.51

REVENUE PER SHARE

$9.29

Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing Ambarella, Inc. significantly. With a DCF value in negative territory, the stock appears overvalued relative to its intrinsic worth. However, the Forward P/E of 17.54 suggests optimism about future earnings, contrasting sharply with a negative earnings yield. The Altman Z-score of 9.78 indicates financial stability, yet the current valuation metrics raise questions about growth sustainability. This is a complex picture of a company with potential but also significant risks.

AI Exposure / Tech Reliance

Positioned in the semiconductor industry, Ambarella is well-placed to capitalize on AI and tech advancements. Its technology is crucial for video processing and computer vision, key components in AI development. This positions the company to potentially benefit from the ongoing tech evolution.

The Bull Case

For the value or GARP investor, Ambarella offers intriguing prospects. The Forward PEG ratio of 0.05 is exceptionally low, indicating potential undervaluation relative to growth. Despite a negative ROIC, the company’s gross profit margin of 59.19% suggests strong pricing power. The Piotroski F-Score of 3 is modest, but the robust Altman Z-score underscores financial resilience, making it an attractive, albeit risky, opportunity.

The Bear Case

Ambarella faces significant structural risks. The negative Price/Earnings and EV/EBITDA ratios highlight profitability concerns, while a Price/Sales ratio of 8.55 suggests overvaluation. The stock is technically extended, trading close to its 52-week high, which could signal a correction. Despite low debt, the negative operating margin and earnings yield reflect operational inefficiencies that could deter investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$90.00

Institutional Ownership %

1-Year Beta

2.16

Insider Buying % (6 Mo)

Distance to 52-Week High

5.28%

Distance to 52-Week Low

47.41%

EARNINGS SURPRISE %

0.00%

50-DAY SMA

$65.58

200-DAY SMA

$72.20

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.