Its products are used in a wide variety of human viewing, computer vision for edge and physical AI applications, including a variety of video security cameras, automotive camera systems, fixed robots, autonomous mobile robots (AMRs), industrial applications, intelligent transportation systems, and consumer devices, such as action, drone and 360 degree cameras. The company operates as a single operating and reportable segment and derives substantially all of its revenue from development and sales of low-power AI-based processing and video and image processing SoC solutions.
We grade stocks based on past performance, their future growth potential, intrinsic value, dividend history, and overall financial health.
The chart below shows how we grade Ambarella (AMBA) across the board compared to its closest peers.
Benzinga Edge stock rankings give you four critical scores to help you identify the strongest and weakest stocks to buy and sell.
72.46
Momentum measures a stock's relative strength based on its price movement patterns and volatility over multiple timeframes, ranked as a percentile against other stocks.
See how Ambarella compares to its peers in these key performance metrics from Benzinga Rankings.
Below, you can see that analysts are estimating a 12-month price target range of $96.00 - $120.00 with an average of $110.25
Recent Ratings for Ambarella (AMBA)
We measure the health of a company based on how profitable they are and their ability to cover both their short-term and long-term debts. The key indicators that we use are the Operating Margin, Quick Ratio, and Debt-to-Equity ratio relative to the companies peers
Operational Margin -0.1935
The operating margin measures how much profit a company makes after it spends money on wages, materials or other administrative expenses but before interest and taxes. It is a good representation of how efficiently a company is able to generate profit from its core operations.
Quick Ratio 1.8985
The quick ratio measures how much of a company's debt, that is due in less than 1 year, can be covered using its cash equivalents, marketable securities, and money that is currently owed to them (accounts receivables).
A company with a quick ratio of less than 1.00 does not, in many cases, have the capital on hand to meet its short-term obligations if they were all due at once, while a quick ratio greater than one indicates the company has the financial resources to remain solvent in the short term.
Debt-to-Equity 0.3120
Debt-to-equity is calculated by dividing a company's total liabilities by its shareholders equity. It is a measure of the degree to which a company is financing its operations through debt versus wholly owned funds. Generally speaking, a D/E ratio below 1.0 would be seen as relatively safe, whereas ratios of 2.0 or higher would be considered risky.
The two main factors that we consider when analyzing past performance is overall return and volatility
Using these two metrics, we can determine if this stock gave its investors enough return for the risk that they took on by owning it. This is measured by the sharpe ratio, which has been used as a primary measure of risk/reward trade-off for almost 60 years.
This ratio can be interpreted as the amount of return an investor has received for the amount of risk that they took on by owning the stock over that timeframe.
Ambarella (AMBA) sharpe ratio over the past 5 years is -0.2080 which is considered to be below average compared to the peer average of 0.1223
Based on our data, AMBA's options trades have recently carried more negative sentiment than positive.
