Is the business good?
How good a business is AMBA?
Ambarella, Inc. earns −18% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−18%
Return on invested capital · cost of capital 9.0% · 27 points below what the capital costs: growth destroys value
- Operating margin
- −19%
Operating margin · Semiconductor Equipment & Materials median 8.4% · 12 months to Q1 2027
- Share count, year on year
- +3.3%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 59%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | −27% |
| FY2022 | −8.9% |
| FY2023 | −22% |
| FY2024 | −68% |
| FY2025 | −44% |
| FY2026 | −21% |
Details›
- Gross margin12 months to Q1 2027
- 59%
- Operating margin12 months to Q1 2027
- −19%
- Net margin12 months to Q1 2027
- −17%
- Free cash flow margin
- 4.5%
- R&D as % of revenue
- 59%
- Revenue, trailing twelve months
- $405M
- Free cash flow, trailing twelve months
- $18M
- Net income, trailing twelve months
- −$70M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −18%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Semiconductor Equipment & Materials
Ranks #21 of 22 by Smart Score