Ambarella (NASDAQ:AMBA) is riding the development of the increasing application of cameras in various applications. The organization expects solid development for its high-definition Polaroid segment in the second 50% of the year as the consumer kept on appreciating the benefits of without hands cameras with incredible feature quality and the wireless integration.
Ambarella also foresees opportunities in the new UAV or quadcopter markets as manufacturers look to offer coordinated HD Polaroid solutions. Ambarella provides cameras Soc-based solutions for camcorders recorders for dash cams for its car secondary selling and is essentially sold to Russia, China, Taiwan, and South Korea.
At the China Sourcing Fair, several Oems presented new item based on Ambarella's A7la Soc solution, including new features such as high dynamic reach, Wi-Fi and two–channel Polaroid operation. Ambarella demonstrated its latest Motorvu's Super HD reference design, which incorporates full exposure, high dynamic go as full HD resolution to significantly boost best Polaroid visibility in true low conditions.
- Warning! GuruFocus has detected 2 Warning Signs with AMBA. Click here to check it out.
- AMBA 15-Year Financial Data
- The intrinsic value of AMBA
- Peter Lynch Chart of AMBA
Taking a look at the end markets
In spite of the fact that there is a financial test in Russia and the focused value pressure at a low end in China still, Ambarella is successfully driving the reception of cameras with higher picture quality and more exceptional features and has new design wins with heading brands in Korea, Japan and Taiwan notwithstanding existing Chinese customers.
At long last, there's strong force in the greater part of Ambarella's Polaroid markets, including IP security, sports and auto cameras. Ambarella's presentation of S2l Polaroid Soc extends its leadership in the security market and helps it characterize a peculiarity throughout the up and coming era of web associated home security cameras.
The professional and consumer IP security business sector of Ambarella was the key driver of year-over-year revenue development, finishing the quarter as the largest Polaroid segment based on both revenue and units. The sequential and year-over-year development in security reflected the increase in revenues from customers included since the first quarter of last year.
Ambarella's president and CEO, Fermi Wang, believes that the extending markets for imaginative, high definition professional and consumer cameras will keep on giing it the chance to develop its revenues in the year ahead.
The trailing P/E and forward P/E ratios of 29.03 and 16.88, respectively, of Ambarella demonstrate robust cost-cutting efforts by the organization. On the other hand, the P/S proportion of 4.54 is over the industry's normal of 1.77, delineating that the stock is exaggerated. In comparison, its competitors like Fujitsu Limited, Intel Corporation, and Texas Instruments have lower P/S ratios of 0.30, 2.57, and 4.12, respectively.
The profit margin is stable at 16.28%. The revenue per share and weakened EPS of $5.69 and $0.85, respectively, look powerless. The quarterly revenue development and quarterly earnings development of 26.80% and 51.90%, respectively, show sound earnings development, over the industry's normal of 7%, or more competitors like Intel Corporation and Texas Instruments' figures of 2% and 3%, respectively. The current degree of 6.98 shows robust current assets for Ambarella. Hence, investors are advised to hold the stock and expect handsome returns over the long haul.