AMBAAMBA
US • —
$85.80
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+28.1% YoY
Gross Margin
58.8%
Health Score
6/10
D/E Ratio
—
Confidence
LOW
Business Snapshot
Ambarella focuses on system-on-a-chip (SoC) designs for video processing, primarily serving the security, automotive, and robotics markets. The company differentiates itself through advanced AI vision processing, positioning it as a challenger in a market dominated by larger semiconductor firms. Financial scale is difficult to assess precisely as TTM revenue is not available in the provided data. A defining characteristic is its strategic pivot toward autonomous-vehicle and edge-AI applications, which introduces both high growth potential and execution risk.
Financial Health
Gross margin stands at a robust 58.8%, indicating healthy product-level profitability, though a prior-year comparison is unavailable. Net margin is deeply negative at -17.2%, reflecting significant operating expenses relative to revenue...
Risk Assessment
- EARNINGS QUALITY — While the company has beaten earnings estimates for 4 consecutive quarters, the net margin is -17.2%, confirming ongoing GAAP losses and a lack of profitability.
- VALUATION — The price/sales ratio of 7.25x is a premium multiple that requires sustained high revenue growth to justify, leaving the stock vulnerable to growth disappointments.
- FCF / CASH BURN — The free cash flow is negative and unavailable in the data, meaning the Python DCF model cannot be calculated, indicating the company is likely still burning cash.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- ANALYST — Despite strong fundamental growth signals, 40% of analysts rate the stock a Hold (vs 60% Buy), revealing a split opinion on the company's risk/reward profile....
Gross margin stands at a robust 58.8%, indicating healthy product-level profitability, though a prior-year comparison is unavailable. Net margin is deeply negative at -17.2%, reflecting significant operating expenses relative to revenue. The balance sheet is conservative with zero debt (Debt/Equity of 0.0x) and strong short-term liquidity, evidenced by a current ratio of 2.31x. Return on equity is negative at -11.8%, confirming that the company is not generating profit on shareholder equity. While there is no immediate solvency risk due to the debt-free structure, the negative net margin and ROE indicate the company is still in an investment-heavy phase with no cash flow available for dividends.
- EARNINGS QUALITY — While the company has beaten earnings estimates for 4 consecutive quarters, the net margin is -17.2%, confirming ongoing GAAP losses and a lack of profitability. - VALUATION — The price/sales ratio of 7.25x is a premium multiple that requires sustained high revenue growth to justify, leaving the stock vulnerable to growth disappointments. - FCF / CASH BURN — The free cash flow is negative and unavailable in the data, meaning the Python DCF model cannot be calculated, indicating the company is likely still burning cash. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - ANALYST — Despite strong fundamental growth signals, 40% of analysts rate the stock a Hold (vs 60% Buy), revealing a split opinion on the company's risk/reward profile.
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