Is Ambarella Stock a Good Investment?
Ambarella Investment Advice | AMBA |
- Examine Ambarella's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Ambarella's leadership team and their track record. Good management can help Ambarella navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact Ambarella's business and its evolving consumer preferences.
- Compare Ambarella's performance and market position to its competitors. Analyze how Ambarella is positioned in terms of product offerings, innovation, and market share.
- Check if Ambarella pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Ambarella's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Ambarella stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ambarella is a good investment.
Sell | Buy |
Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Ambarella Stock
Researching Ambarella's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 82.0% of the company shares are held by institutions such as insurance companies. The book value of Ambarella was presently reported as 13.27. The company has Price/Earnings (P/E) ratio of 202.7. Ambarella recorded a loss per share of 4.33. The entity had not issued any dividends in recent years.
To determine if Ambarella is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Ambarella's research are outlined below:
| The company reported the previous year's revenue of 226.47 M. Net Loss for the year was (169.42 M) with profit before overhead, payroll, taxes, and interest of 211.96 M. | |
| Ambarella has a strong financial position based on the latest SEC filings | |
| Over 82.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from news.google.com: Ambarella, Inc. Given Consensus Rating of Moderate Buy by Brokerages - MarketBeat |
Ambarella Quarterly Liabilities And Stockholders Equity |
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Ambarella uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Ambarella. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Ambarella's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 4th of June 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 27th of February 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Ambarella's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Ambarella's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2020-03-03 | 2020-01-31 | 0.11 | 0.14 | 0.03 | 27 | ||
2022-12-01 | 2022-10-31 | 0.2 | 0.24 | 0.04 | 20 | ||
2020-11-23 | 2020-10-31 | 0.05 | 0.09 | 0.04 | 80 | ||
2018-06-05 | 2018-04-30 | 0.09 | 0.13 | 0.04 | 44 | ||
2014-06-03 | 2014-04-30 | 0.21 | 0.25 | 0.04 | 19 | ||
2024-05-30 | 2024-04-30 | -0.31 | -0.26 | 0.05 | 16 | ||
2020-06-02 | 2020-04-30 | -0.01 | 0.04 | 0.05 | 500 | ||
2013-03-07 | 2013-01-31 | 0.13 | 0.18 | 0.05 | 38 |
Know Ambarella's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Ambarella is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Ambarella backward and forwards among themselves. Ambarella's institutional investor refers to the entity that pools money to purchase Ambarella's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Dimensional Fund Advisors, Inc. | 2024-09-30 | 651.3 K | Nuveen Asset Management, Llc | 2024-06-30 | 621.9 K | Marshall Wace Asset Management Ltd | 2024-06-30 | 613.3 K | Legal & General Group Plc | 2024-06-30 | 536.8 K | Point72 Asset Management, L.p. | 2024-06-30 | 507 K | Stephens Inv Mgmt Group Llc | 2024-09-30 | 501 K | Bank Of America Corp | 2024-06-30 | 443.3 K | Assenagon Asset Management Sa | 2024-09-30 | 402.5 K | Voloridge Investment Management, Llc | 2024-06-30 | 395.7 K | Vanguard Group Inc | 2024-09-30 | 4.6 M | Blackrock Inc | 2024-06-30 | 3.5 M |
Ambarella's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 2.44 B.Market Cap |
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Ambarella's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.57) | (0.54) | |
| Return On Capital Employed | (0.27) | (0.26) | |
| Return On Assets | (0.26) | (0.24) | |
| Return On Equity | (0.30) | (0.32) |
Determining Ambarella's profitability involves analyzing its financial statements and using various financial metrics to determine if Ambarella is a good buy. For example, gross profit margin measures Ambarella's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Ambarella's profitability and make more informed investment decisions.
Ambarella's Earnings Breakdown by Geography
Please note, the presentation of Ambarella's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Ambarella's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Ambarella's management manipulating its earnings.
Evaluate Ambarella's management efficiency
Ambarella has return on total asset (ROA) of (0.148) % which means that it has lost $0.148 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.3046) %, meaning that it created substantial loss on money invested by shareholders. Ambarella's management efficiency ratios could be used to measure how well Ambarella manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to -0.54. The current year's Return On Capital Employed is expected to grow to -0.26. At present, Ambarella's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 2.9 M, whereas Total Assets are forecasted to decline to about 429.9 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 14.04 | 7.77 | |
| Tangible Book Value Per Share | 5.04 | 5.90 | |
| Enterprise Value Over EBITDA | (15.08) | (15.83) | |
| Price Book Value Ratio | 3.74 | 3.93 | |
| Enterprise Value Multiple | (15.08) | (15.83) | |
| Price Fair Value | 3.74 | 3.93 | |
| Enterprise Value | 2 B | 1 B |
Ambarella's management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.
Beta 1.624 |
Basic technical analysis of Ambarella Stock
As of the 21st of November, Ambarella shows the risk adjusted performance of 0.0998, and Mean Deviation of 2.1. Ambarella technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Ambarella's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Ambarella insiders, such as employees or executives, is commonly permitted as long as it does not rely on Ambarella's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Ambarella insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Ambarella's Outstanding Corporate Bonds
Ambarella issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Ambarella uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Ambarella bonds can be classified according to their maturity, which is the date when Ambarella has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View |
Understand Ambarella's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Ambarella's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0998 | |||
| Market Risk Adjusted Performance | 0.1901 | |||
| Mean Deviation | 2.1 | |||
| Semi Deviation | 2.34 | |||
| Downside Deviation | 2.57 | |||
| Coefficient Of Variation | 815.0 | |||
| Standard Deviation | 2.85 | |||
| Variance | 8.11 | |||
| Information Ratio | 0.0892 | |||
| Jensen Alpha | 0.1784 | |||
| Total Risk Alpha | 0.0165 | |||
| Sortino Ratio | 0.0987 | |||
| Treynor Ratio | 0.1801 | |||
| Maximum Drawdown | 17.6 | |||
| Value At Risk | (3.83) | |||
| Potential Upside | 4.15 | |||
| Downside Variance | 6.62 | |||
| Semi Variance | 5.46 | |||
| Expected Short fall | (2.31) | |||
| Skewness | 0.516 | |||
| Kurtosis | 1.98 |
| Risk Adjusted Performance | 0.0998 | |||
| Market Risk Adjusted Performance | 0.1901 | |||
| Mean Deviation | 2.1 | |||
| Semi Deviation | 2.34 | |||
| Downside Deviation | 2.57 | |||
| Coefficient Of Variation | 815.0 | |||
| Standard Deviation | 2.85 | |||
| Variance | 8.11 | |||
| Information Ratio | 0.0892 | |||
| Jensen Alpha | 0.1784 | |||
| Total Risk Alpha | 0.0165 | |||
| Sortino Ratio | 0.0987 | |||
| Treynor Ratio | 0.1801 | |||
| Maximum Drawdown | 17.6 | |||
| Value At Risk | (3.83) | |||
| Potential Upside | 4.15 | |||
| Downside Variance | 6.62 | |||
| Semi Variance | 5.46 | |||
| Expected Short fall | (2.31) | |||
| Skewness | 0.516 | |||
| Kurtosis | 1.98 |
Consider Ambarella's intraday indicators
Ambarella intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Ambarella stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Ambarella Corporate Filings
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
13A | 4th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
F4 | 9th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 4th of September 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Ambarella Stock media impact
Far too much social signal, news, headlines, and media speculation about Ambarella that are available to investors today. That information is available publicly through Ambarella media outlets and privately through word of mouth or via Ambarella internal channels. However, regardless of the origin, that massive amount of Ambarella data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Ambarella news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Ambarella relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Ambarella's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Ambarella alpha.
Ambarella Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Ambarella can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Ambarella Historical Investor Sentiment
Investor biases related to Ambarella's public news can be used to forecast risks associated with an investment in Ambarella. The trend in average sentiment can be used to explain how an investor holding Ambarella can time the market purely based on public headlines and social activities around Ambarella. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Ambarella's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Ambarella and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Ambarella news discussions. The higher the estimate score, the more favorable the investor's outlook on Ambarella.
Ambarella Corporate Management
| Christopher Day | VP of Marketing and Bus. Devel. | Profile | |
| John Young | Chief Officer | Profile | |
| Amee OrozcoGuiriba | Vice Resources | Profile | |
| Chan Lee | Chief Officer | Profile | |
| Michael Morehead | General Secretary | Profile | |
| ChiHong Ju | Senior Centers | Profile |
Already Invested in Ambarella?
The danger of trading Ambarella is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Ambarella is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Ambarella. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Ambarella is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Ambarella offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ambarella's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ambarella Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ambarella Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Ambarella. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. For information on how to trade Ambarella Stock refer to our How to Trade Ambarella Stock guide.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ambarella. If investors know Ambarella will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ambarella listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (4.33) | Revenue Per Share 5.431 | Quarterly Revenue Growth 0.026 | Return On Assets (0.15) | Return On Equity (0.30) |
The market value of Ambarella is measured differently than its book value, which is the value of Ambarella that is recorded on the company's balance sheet. Investors also form their own opinion of Ambarella's value that differs from its market value or its book value, called intrinsic value, which is Ambarella's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ambarella's market value can be influenced by many factors that don't directly affect Ambarella's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Ambarella's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Ambarella is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ambarella's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.