Ambarella Stock Analysis, Valuation (NASDAQ:AMBA)

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$43.24 $0.44 (1.01%) AMBA stock closing price Jun 22, 2018 (Closing)

Investors can watch the Amigobulls Ambarella stock analysis video here. Our AMBA analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Ambarella Inc Stock Rating 2.6/5

Amigobulls AMBA stock analysis relies on business fundamentals such as Ambarella revenue growth, profits and return on equity measures from the latest quarter 2019 Q1 earnings. We also use relative valuation metrics like PE ratio and price to sales ratio for Ambarella valuation analysis. Ambarella stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy AMBA stock?

  • LTM Net margins were good at 2.2% for Ambarella.
  • Ambarella generates a high return on invested capital of 8.8.

Should you sell AMBA stock?

  • Ambarella sales shrank by -11.2% year-over-year in 2018-04.
  • Over the last 5 years, the company registered a poor revenue growth of 17.4.
  • Trading at a PE ratio of 240.2, AMBA stock is overvalued in comparison to sector average multiple of 26.1.
  • The company is trading at a price to sales multiple of 5, which is overvalued in comparison to the Computer and Technology sector average multiple of 2.9.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -1.1.

Comments on this video and Ambarella stock

Investors can make use of the Amigobulls Ambarella stock analysis to ascertain how AMBA stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.

Ambarella revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about AMBA stock.