AMBA
BEARISH
$52.29
Live
Ambarella, Inc. · NASDAQ
Target $89.58
(+71.3%)
$38.86
52W Range
$96.69
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Mar 14, 2026
Market cap
$2.25B
P/E
N/A
ROE
-13.1%
Profit margin
-19.4%
Debt/Equity
0.02
Dividend yield
N/A
AI Analysis
AI-powered fundamental assessment
Confidence
85%
Ambarella (AMBA) exhibits weak financial health per the Piotroski F-Score of 4/9, indicating a fragile operational foundation despite modest growth. The company trades at a high forward P/E of 48.14 and a price/sales ratio of 5.76, significantly above sector averages, suggesting overvaluation. While revenue growth is strong at 20.1% YoY and earnings surprises have been positive in recent quarters, profitability remains deeply negative with a -19.42% profit margin and negative ROE/ROA. Insider selling activity totaling $6.52M over six months signals bearish sentiment from within the company. The absence of a Graham Number and intrinsic value estimate further limits fundamental valuation clarity.
Key Strengths
Strong revenue growth of 20.1% YoY
Consistently positive earnings surprises in the last 4 quarters (average +77.78%)
High gross margin of 59.97% indicates pricing power and efficient production
Excellent liquidity with current ratio of 2.31 and quick ratio of 1.98
Very low debt/equity ratio of 0.02, indicating minimal financial leverage risk
Key Risks
Piotroski F-Score of 4/9 indicates weak financial health and operational instability
Negative profit margin (-19.42%) and ROE (-13.12%) suggest ongoing profitability challenges
Insider selling of $6.52M in last 6 months reflects bearish internal sentiment
No dividend or payout history, indicating no return to shareholders
Stock trades at a premium to peers with forward P/E of 48.14 vs sector average of 77.53, but with worse profitability
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
41
Moderate
35
68
72
30
0
AI Verdict
Weak
Key drivers: Negative profitability despite revenue growth, Low Piotroski F-Score indicating financial fragility, Bearish insider activity, High valuation multiples relative to earnings, Lack of intrinsic value metrics
Confidence
88%
Value
35/100
Ref P/E, PEG, Graham Number
Positives
- High gross margin (59.97%) suggests strong unit economics
- Low debt/equity (0.02) reduces financial risk
Watchpoints
- Forward P/E of 48.14 is high for a company with negative earnings
- Price/Sales of 5.76 is elevated compared to peers
- No Graham Number or intrinsic value estimate available
Future
68/100
Ref Growth rates
Positives
- 20.1% YoY revenue growth indicates strong market demand
- Recent quarters show improving earnings trends (e.g., +18.2% YoY EPS growth)
- High average earnings surprise (+77.78%) suggests strong execution
Watchpoints
- Most recent Q/Q EPS growth is -51.9%, indicating near-term deterioration
- Forward P/E of 48.14 implies high growth expectations that may be hard to sustain
Past
72/100
Ref Historical trends
Positives
- 25 consecutive quarters of earnings beat history with strong average surprise (+77.78%)
- Consistent improvement in earnings from deep losses to modest profits
- Positive trend in EPS progression over the last 5 years
Watchpoints
- Persistent negative margins and ROE over multiple years
- Historical losses in 2020–2023 indicate prolonged unprofitability
Health
30/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Extremely low debt/equity (0.02) and strong liquidity (current ratio 2.31)
- No Altman Z-Score available, but low leverage reduces distress risk
Watchpoints
- Piotroski F-Score of 4/9 indicates weak financial health and operational instability
- Negative ROE (-13.12%) and ROA (-6.53%) signal poor capital efficiency
- No Altman Z-Score available, but negative profitability raises red flags
Dividend
0/100
Ref Yield, Payout
Positives
No standout positives identified.
Watchpoints
- No dividend yield or payout ratio
- Payout ratio is 0.00%
- No history of dividend payments
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$52.29
Analyst Target
$89.58
Upside/Downside
+71.3%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for AMBA and closest competitors.
Updated 2026-03-13
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
AMBA
Ambarella, Inc.
Primary
|
-54.5% | -33.1% | +0.2% | -34.9% | -21.8% | -0.2% |
|
FRSH
Freshworks Inc.
Peer
|
-83.3% | -46.2% | -39.9% | -30.4% | -0.8% | -4.6% |
|
ASGN
ASGN Incorporated
Peer
|
-43.5% | -42.0% | -44.9% | -6.8% | +2.4% | +4.2% |
|
BTDR
Bitdeer Technologies Group
Peer
|
-5.9% | -19.9% | +13.7% | -54.3% | +26.8% | +8.8% |
|
EXTR
Extreme Networks, Inc.
Peer
|
+75.3% | -15.1% | +52.2% | -19.8% | +17.6% | +8.6% |
AMB
Ambarella, Inc.
Primary
5Y
-54.5%
3Y
-33.1%
1Y
+0.2%
6M
-34.9%
1M
-21.8%
1W
-0.2%
FRS
Freshworks Inc.
Peer
5Y
-83.3%
3Y
-46.2%
1Y
-39.9%
6M
-30.4%
1M
-0.8%
1W
-4.6%
ASG
ASGN Incorporated
Peer
5Y
-43.5%
3Y
-42.0%
1Y
-44.9%
6M
-6.8%
1M
+2.4%
1W
+4.2%
BTD
Bitdeer Technologies Group
Peer
5Y
-5.9%
3Y
-19.9%
1Y
+13.7%
6M
-54.3%
1M
+26.8%
1W
+8.8%
EXT
Extreme Networks, Inc.
Peer
5Y
+75.3%
3Y
-15.1%
1Y
+52.2%
6M
-19.8%
1M
+17.6%
1W
+8.6%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
N/A
Forward P/E
48.14
PEG Ratio
N/A
P/B Ratio
3.8
P/S Ratio
5.76
EV/Revenue
5.01
EV/EBITDA
-30.38
Market Cap
$2.25B
Profitability
Profit margins and return metrics
Profit Margin
-19.42%
Operating Margin
-17.07%
Gross Margin
59.97%
ROE
-13.12%
ROA
-6.53%
Growth
Revenue and earnings growth rates
Revenue Growth
+20.1%
Earnings Growth
N/A
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
N/A
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.02
Low debt
Current Ratio
2.31
Strong
Quick Ratio
1.98
Excellent
Cash/Share
$7.24
Quarterly Earnings History
EPS performance vs analyst estimates
2026-05-28
$N/A
2026-02-26
$0.13
+26.7% surprise
2025-11-25
$0.27
+29.6% surprise
2025-08-28
$0.15
+177.1% surprise
Technology Sector Comparison
Comparing AMBA against 565 companies in the Technology sector
(45 bullish, 197 neutral, 323 bearish)
Return on Equity (ROE)
-13.12%
This Stock
vs
-33.47%
Sector Avg
-60.8%
(Below Avg)
Profit Margin
-19.42%
This Stock
vs
-11.75%
Sector Avg
+65.3%
(Superior)
Debt to Equity
0.02
This Stock
vs
0.74
Sector Avg
-97.0%
(Less Debt)
Revenue Growth
20.1%
This Stock
vs
4383.21%
Sector Avg
-99.5%
(Slower)
Current Ratio
2.31
This Stock
vs
3.59
Sector Avg
-35.7%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
AMBA
Ambarella, Inc.
|
BEARISH | $2.25B | - | -13.1% | -19.4% | $52.29 | |
|
FRSH
Freshworks Inc.
|
NEUTRAL | $2.26B | 12.81 | 16.9% | 21.9% | $7.94 | Compare |
|
ASGN
ASGN Incorporated
|
NEUTRAL | $2.24B | 17.48 | 7.2% | 3.3% | $51.04 | Compare |
|
BTDR
Bitdeer Technologies Group
|
NEUTRAL | $2.29B | - | 11.5% | 10.6% | $9.41 | Compare |
|
EXTR
Extreme Networks, Inc.
|
BEARISH | $2.22B | 275.0 | 12.4% | 0.8% | $16.5 | Compare |
AMBA
Ambarella, Inc.
BEARISH
Mkt Cap
$2.3B
P/E
-
ROE
-13.1%
Price
$52.29
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-03-02 | WANG FENG MING | Chief Executive Officer | Option Exercise | 50,000 | $2,068,000 |
| 2026-03-02 | YOUNG JOHN ALEXANDER | Chief Financial Officer | Stock Award | 15,201 | - |
| 2026-03-02 | WANG FENG MING | Chief Executive Officer | Stock Award | 53,203 | - |
| 2026-03-02 | CHEN YUN-LUNG | Officer | Stock Award | 7,220 | - |
| 2026-03-02 | BRYANT GREGORY M. | Director | Stock Award | 2,457 | - |
| 2026-03-02 | LEE CHAN W | Chief Operating Officer | Stock Award | 24,701 | - |
| 2026-03-02 | JU CHI-HONG JOHN | Officer | Stock Award | 17,329 | - |
| 2026-03-02 | WANG FENG MING | Chief Executive Officer | Sale | 50,000 | $3,040,031 |
| 2026-01-05 | JU CHI-HONG JOHN | Officer | Sale | 7,728 | $584,105 |
| 2025-12-30 | JU CHI-HONG JOHN | Officer | Sale | 3,765 | $264,755 |
| 2025-12-30 | JU CHI-HONG JOHN | Officer | Sale | 7,945 | $558,136 |
| 2025-12-26 | PAISLEY CHRISTOPHER B. | Director | Sale | 500 | $36,090 |
| 2025-12-19 | WANG FENG MING | Chief Executive Officer | Gift | 15,000 | - |
| 2025-12-18 | YOUNG JOHN ALEXANDER | Chief Financial Officer | Sale | 6,370 | $461,815 |
| 2025-12-17 | LEE CHAN W | Chief Operating Officer | Sale | 2,406 | $172,799 |
WANG FENG MING
Chief Executive Officer
2026-03-02
50,000 shares
·
$2,068,000
YOUNG JOHN ALEXANDER
Chief Financial Officer
2026-03-02
15,201 shares
WANG FENG MING
Chief Executive Officer
2026-03-02
53,203 shares
CHEN YUN-LUNG
Officer
2026-03-02
7,220 shares
BRYANT GREGORY M.
Director
2026-03-02
2,457 shares
LEE CHAN W
Chief Operating Officer
2026-03-02
24,701 shares
JU CHI-HONG JOHN
Officer
2026-03-02
17,329 shares
WANG FENG MING
Chief Executive Officer
2026-03-02
50,000 shares
·
$3,040,031
JU CHI-HONG JOHN
Officer
2026-01-05
7,728 shares
·
$584,105
JU CHI-HONG JOHN
Officer
2025-12-30
3,765 shares
·
$264,755
JU CHI-HONG JOHN
Officer
2025-12-30
7,945 shares
·
$558,136
PAISLEY CHRISTOPHER B.
Director
2025-12-26
500 shares
·
$36,090
WANG FENG MING
Chief Executive Officer
2025-12-19
15,000 shares
YOUNG JOHN ALEXANDER
Chief Financial Officer
2025-12-18
6,370 shares
·
$461,815
LEE CHAN W
Chief Operating Officer
2025-12-17
2,406 shares
·
$172,799
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
12 analysts
B of A Securities
2025-11-26
Neutral
Neutral
Rosenblatt
2025-11-26
Buy
Buy
Stifel
2025-11-26
Buy
Buy
Needham
2025-11-26
Buy
Buy
Rosenblatt
2025-11-24
Buy
Buy
Past News Coverage
Recent headlines mentioning AMBA from our newsroom.
Newest → oldest
No matching news yet.