Is AMBARELLA INC (AMBA) Halal?
Shariah Screening — 5 Standards
Based on financial data from January 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 0.2% / 30% | 11.1% / 30% | 1.3% / 30% | 3.11% / 5% | ✓ HALAL |
| DJIM | 0.2% / 33% | 11.1% / 33% | 1.3% / 33% | 3.11% / 5% | ✓ HALAL |
| MSCI | 0.8% / 33% | 36.3% / 33% | 4.3% / 33% | 3.11% / 5% | ✗ NOT HALAL |
| S&P | 0.2% / 33% | 11.1% / 33% | 1.3% / 33% | 3.11% / 5% | ✓ HALAL |
| FTSE | 0.8% / 33% | 36.3% / 33% | 4.3% / 50% | 3.11% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 59.2% | |
| Operating Margin | -18.3% | |
| Net Margin | -19.4% | |
| Return on Equity (ROE) | -13.1% | |
| Return on Assets (ROA) | -6.9% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $34M |
| Free Cash Flow | $23M |
| Total Debt | $5M |
| Debt-to-Equity | 2.3 |
| Current Ratio | 2.3 |
| Total Assets | $689M |
Price & Trading
| Last Close | $52.67 |
| 50-Day MA | $61.22 |
| 200-Day MA | $71.36 |
| Avg Volume | 957K |
| Beta | 2.0 |
|
52-Week Range
$38.86
| |
About AMBARELLA INC (AMBA)
Ambarella, Inc. develops low-power system-on-a-chip, semiconductors, and software for edge and physical artificial intelligence, applications, and intelligent automation. The company's system-on-a-chip (SOC) integrates third generation CVflow technology with advanced video processing, image signal processing, audio processing, and system control functions on a single chip. It also offers central domain controllers, CVflow SoCs, AI neural processors, vision processor SoCs, high-definition radars, and serializer/deserializers, as well as licenses software modules. The company's solutions are used in automotive video recorders, electronic mirrors, front advanced driver assistance system camera, AI Telematics Systems, and cabin monitoring system and driver monitoring system cameras in automotive field; central domain controllers for autonomous vehicles in autonomy; enterprise and public class, and home security cameras in the field of IoT; and enterprise, home, public spaces, and consumer applications, as well as for video conferencing, access control, healthcare, medical, and virtual reality applications. It sells its solutions to original design manufacturers, original equipment manufacturers, automotive market, and Tier-1 suppliers through its direct sales force and distributors. The company operates in Taiwan, rest of the Asia Pacific, Europe, the United States, and rest of North America. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.
Purification Calculator
As a halal stock with 3.11% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is AMBARELLA INC (AMBA) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), AMBARELLA INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is AMBARELLA INC's debt ratio?
AMBARELLA INC's debt ratio is 0.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.8%.
Does AMBARELLA INC require dividend purification?
Yes, AMBARELLA INC has an impermissible income ratio of 3.11%, which means 3.11% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are AMBARELLA INC's key financial metrics?
AMBARELLA INC has a market capitalization of $2.2B. The company maintains a gross margin of 59.2% and a net margin of -19.4%. Return on equity stands at -13.1%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.