Ambarella Stock Analysis (NASDAQ:AMBA)

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$55.44 $0.4 (0.72%) AMBA stock closing price Apr 26, 2017 (Closing)
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Ambarella
Updated on : Apr 26, 2017
previous close
AMBA 55.4 (0%)
NASDAQ 6025.2 (0%)
Closing Price On: Apr 26, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Electronics-Semiconductors
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
19.5%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$32.3M
Net Income:
$18.4M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
AMBA PS :
5.9
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
107.3%
Return on Equity:
14.6%
Free Cash Flow Margin:
36.2%
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Ambarella Analysis Video

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View Ambarella stock analysis video. This is our AMBA analyst opinion covering the buy and sell arguments for AMBA stock.

Ambarella Inc Stock Rating (3.9/5)

Our Ambarella stock opinion is based on fundamentals of the company. This Ambarella stock analysis is based on latest Q4 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy AMBA stock?

  • Ambarella sales grew by 28.7% year on year in 2017 Q4.
  • The TTM operating margin was good at 19.5% for Ambarella.
  • Net margins came in at average 18.6% for Ambarella over the last twelve months.
  • Ambarella generates a high return on invested capital of 107.3%.
  • The LTM ROE of 14.6% for Ambarella is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 36.2%.

Should you sell AMBA stock?

  • The company is trading at a price to sales multiple of 5.9, which is higher in comparison to the Electronics-Semiconductors industry average of 2.7, making AMBA stock expensive.

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