AMBANEUTRAL

Return on Equity (ROE)

-12.8%

Higher than 18% of Technology sector peers

Updated 641h ago

Sector Performance

18th percentile

AMBA

-12.8%

Sector Median

6.6%

Sector Avg

0.9%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity, so a negative ROE means Ambarella is losing money relative to what investors have put in.

Its current ROE of -12.8% sits well below the Technology sector median of 6.7%, placing it in the 15th percentile among peers. Trend direction is not available because year-over-year and quarter-over-quarter changes are both listed as N/A, so no recent trajectory can be assessed. The combination of a deeply negative ROE and no trend data indicates elevated fundamental risk—the company is clearly underperforming its sector in profitability, with no visible pattern to suggest improvement or deterioration. This metric directly supports the overall NEUTRAL verdict: the poor ROE level argues against optimism, but the absence of trend information prevents a bearish conclusion.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AMBA?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AMBA's Return on Equity (ROE) compare to its sector?

AMBA's Return on Equity (ROE) of -12.8% compares to a Technology sector median of 6.6%, placing it in the 18th percentile.

Who are AMBA's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: MSTR (-7.9%), COHU (-9.5%), LSPD (-9.7%), U (-12.4%), WIX (-13.8%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.