Ambiq Micro, Inc.
Ambiq Micro, Inc. Fundamental Analysis
Ambiq Micro, Inc. (AMBQ) shows moderate financial fundamentals with a PE ratio of -12.89, profit margin of -50.28%, and ROE of -30.29%. The company generates $0.1B in annual revenue with strong year-over-year growth of 16.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -24.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AMBQ's fundamental strength across five key dimensions:
Efficiency Score
WeakAMBQ struggles to generate sufficient returns from assets.
Valuation Score
ModerateAMBQ shows balanced valuation metrics.
Growth Score
ExcellentAMBQ delivers strong and consistent growth momentum.
Financial Health Score
ExcellentAMBQ maintains a strong and stable balance sheet.
Profitability Score
WeakAMBQ struggles to sustain strong margins.
Key Financial Metrics
Is AMBQ Expensive or Cheap?
P/E Ratio
AMBQ trades at -12.89 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AMBQ's PEG of 15.27 indicates potential overvaluation.
Price to Book
The market values Ambiq Micro, Inc. at 2.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -21.94 times EBITDA. This is generally considered low.
How Well Does AMBQ Make Money?
Net Profit Margin
For every $100 in sales, Ambiq Micro, Inc. keeps $-50.28 as profit after all expenses.
Operating Margin
Core operations generate -52.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-30.29 in profit for every $100 of shareholder equity.
ROA
Ambiq Micro, Inc. generates $-19.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ambiq Micro, Inc. generates limited operating cash flow of $-20.92M, signaling weaker underlying cash strength.
Free Cash Flow
Ambiq Micro, Inc. generates weak or negative free cash flow of $-29.89M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.43 in free cash annually.
FCF Yield
AMBQ converts -4.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-12.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
15.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.30
vs 25 benchmark
ROA
Return on assets percentage
-0.20
vs 25 benchmark
ROCE
Return on capital employed
-0.23
vs 25 benchmark
How AMBQ Stacks Against Its Sector Peers
| Metric | AMBQ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -12.89 | 34.43 | Better (Cheaper) |
| ROE | -30.29% | 1135.00% | Weak |
| Net Margin | -50.28% | -134663.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 8.76 | 5.77 | Strong Liquidity |
| ROA | -19.74% | -310462.00% (disorted) | Weak |
AMBQ outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ambiq Micro, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.97%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-58.03%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
37.83%
Industry Style: Growth, Innovation, High Beta
High Growth