Stock Updates

Is this Large Market Cap Stock target price reasonable for Ambarella, Inc. (NASDAQ:AMBA)?

The company in question is, Ambarella, Inc. (NASDAQ:AMBA) currently with a stock price of 61.98 (-1.93% today). The market cap for Ambarella, Inc. is 2115.3, and is in the sector Technology, and Semiconductor Equipment & Materials industry. The target price for Ambarella, Inc. is 75.67. Currently Ambarella, Inc. is trading with a P/E of 47.7, and a forward P/E of 20.55. Average volume for Ambarella, Inc. is 1078.34 and so far today it is 855399.

Performance in the last year for Ambarella, Inc. has been 13.69%. For EPS growth, Ambarella, Inc. has seen a growth of 44.70%, and is looking to grow in the next year to 16.70%. More long term stats show that EPS growth has been 35.50% over the last five years and could be 16.33% for the next five years. Ambarella, Inc. has seen sales growth quarter over quarter at -22.70%, with EPS growth quarter over quarter at -62.90%. The 20-day simple moving average is -7.54%, with the 200-day simple moving average coming to 22.81%.

Since the IPO date for Ambarella, Inc. on the 10/10/2012, Ambarella, Inc. has seen performance year to date to be 13.38%. With Ambarella, Inc. trading at 61.98, the dividend yield is *TBA, and the EPS is 1.33.

So could Ambarella, Inc., be undervalued? Well as said before P/E is 47.7. The PEG is 2.92, P/S is 7.46 and the P/B is at 5.46. The P/cash is 6.47, with P/free cash flow at 20.76.

Ambarella, Inc. ability to deal with debt shows that the current ratio is 8, and the quick ratio is 7.6. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Ambarella, Inc. has a gross margin of 65.20%, an operating margin of 17.70% and a profit margin of 15.90%.Payout ratio for Ambarella, Inc. is 0.00%. Return on assets come to 10.90% with return on investment coming to 21.70%.

Insider ownership for Ambarella, Inc., is at 4.30% and institutional ownership comes to 54.20%. Outstanding shares are at 33.47. While shares float is 31.27. The float short is currently 20.50%, and short ratio is 5.94.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

Leave a Comment