RAMBUS INC (RMBS) Stock Fundamental Analysis
NASDAQ:RMBS - Nasdaq - US7509171069 - Common Stock - Currency: USD
RMBS gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making RMBS a very profitable company, without any liquidiy or solvency issues. RMBS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make RMBS a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year RMBS was profitable.
In the past year RMBS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: RMBS reported negative net income in multiple years.
In the past 5 years RMBS always reported a positive cash flow from operatings.
1.2 Ratios
RMBS has a Return On Assets of 13.39%. This is amongst the best in the industry. RMBS outperforms 84.40% of its industry peers.
RMBS has a better Return On Equity (16.05%) than 78.90% of its industry peers.
RMBS has a better Return On Invested Capital (13.18%) than 85.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RMBS is in line with the industry average of 11.14%.
The 3 year average ROIC (9.26%) for RMBS is below the current ROIC(13.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.39% | ||
| ROE | 16.05% | ||
| ROIC | 13.18% |
ROA(3y)12.84%
ROA(5y)7.35%
ROE(3y)15.46%
ROE(5y)8.81%
ROIC(3y)9.26%
ROIC(5y)N/A
1.3 Margins
RMBS's Profit Margin of 32.31% is amongst the best of the industry. RMBS outperforms 93.58% of its industry peers.
In the last couple of years the Profit Margin of RMBS has grown nicely.
Looking at the Operating Margin, with a value of 33.21%, RMBS belongs to the top of the industry, outperforming 93.58% of the companies in the same industry.
In the last couple of years the Operating Margin of RMBS has grown nicely.
RMBS's Gross Margin of 80.22% is amongst the best of the industry. RMBS outperforms 97.25% of its industry peers.
RMBS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.21% | ||
| PM (TTM) | 32.31% | ||
| GM | 80.22% |
OM growth 3Y64.05%
OM growth 5YN/A
PM growth 3Y79.62%
PM growth 5YN/A
GM growth 3Y0.7%
GM growth 5Y0.71%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RMBS is still creating some value.
The number of shares outstanding for RMBS has been reduced compared to 1 year ago.
The number of shares outstanding for RMBS has been reduced compared to 5 years ago.
There is no outstanding debt for RMBS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
RMBS has an Altman-Z score of 14.50. This indicates that RMBS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 14.50, RMBS belongs to the best of the industry, outperforming 88.99% of the companies in the same industry.
There is no outstanding debt for RMBS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.5 |
ROIC/WACC1.2
WACC11.01%
2.3 Liquidity
RMBS has a Current Ratio of 8.44. This indicates that RMBS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 8.44, RMBS belongs to the best of the industry, outperforming 94.50% of the companies in the same industry.
A Quick Ratio of 7.89 indicates that RMBS has no problem at all paying its short term obligations.
RMBS's Quick ratio of 7.89 is amongst the best of the industry. RMBS outperforms 96.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.44 | ||
| Quick Ratio | 7.89 |
3. Growth
3.1 Past
RMBS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.49%.
RMBS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.14% yearly.
Looking at the last year, RMBS shows a very strong growth in Revenue. The Revenue has grown by 20.71%.
RMBS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.59% yearly.
EPS 1Y (TTM)4.49%
EPS 3Y10.73%
EPS 5Y14.14%
EPS Q2Q%19.15%
Revenue 1Y (TTM)20.71%
Revenue growth 3Y19.24%
Revenue growth 5Y19.59%
Sales Q2Q%18.46%
3.2 Future
The Earnings Per Share is expected to grow by 21.01% on average over the next years. This is a very strong growth
Based on estimates for the next years, RMBS will show a quite strong growth in Revenue. The Revenue will grow by 9.86% on average per year.
EPS Next Y36.24%
EPS Next 2Y25.8%
EPS Next 3Y22.11%
EPS Next 5Y21.01%
Revenue Next Year22.44%
Revenue Next 2Y17.98%
Revenue Next 3Y17.54%
Revenue Next 5Y9.86%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.58, the valuation of RMBS can be described as rather expensive.
62.39% of the companies in the same industry are more expensive than RMBS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RMBS to the average of the S&P500 Index (28.29), we can say RMBS is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 18.04, the valuation of RMBS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, RMBS is valued a bit cheaper than the industry average as 73.39% of the companies are valued more expensively.
RMBS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.58 | ||
| Fwd PE | 18.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMBS is valued a bit cheaper than the industry average as 66.06% of the companies are valued more expensively.
RMBS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RMBS is cheaper than 74.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.58 | ||
| EV/EBITDA | 17.79 |
4.3 Compensation for Growth
RMBS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of RMBS may justify a higher PE ratio.
RMBS's earnings are expected to grow with 22.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)1.74
EPS Next 2Y25.8%
EPS Next 3Y22.11%
5. Dividend
5.1 Amount
RMBS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
45.72
-0.2 (-0.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.78%
Inst Owner Change0%
Ins Owners0.77%
Ins Owner Change2.76%
Market Cap4.91B
Analysts81.33
Price Target76.5 (67.32%)
Short Float %4.28%
Short Ratio4.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.79%
Min EPS beat(2)-4.79%
Max EPS beat(2)-2.79%
EPS beat(4)0
Avg EPS beat(4)-8.17%
Min EPS beat(4)-17.56%
Max EPS beat(4)-2.79%
EPS beat(8)4
Avg EPS beat(8)-1.65%
EPS beat(12)5
Avg EPS beat(12)-6.68%
EPS beat(16)9
Avg EPS beat(16)-3.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-3.17%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-5.67%
Min Revenue beat(4)-12.45%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-9.47%
Revenue beat(12)0
Avg Revenue beat(12)-12.88%
Revenue beat(16)0
Avg Revenue beat(16)-16.63%
PT rev (1m)2.56%
PT rev (3m)9.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)0%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.58 | ||
| Fwd PE | 18.04 | ||
| P/S | 8.83 | ||
| P/FCF | 24.58 | ||
| P/OCF | 21.3 | ||
| P/B | 4.38 | ||
| P/tB | 6.01 | ||
| EV/EBITDA | 17.79 |
EPS(TTM)1.86
EY4.07%
EPS(NY)2.53
Fwd EY5.54%
FCF(TTM)1.86
FCFY4.07%
OCF(TTM)2.15
OCFY4.69%
SpS5.18
BVpS10.43
TBVpS7.6
PEG (NY)0.68
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.39% | ||
| ROE | 16.05% | ||
| ROCE | 14.66% | ||
| ROIC | 13.18% | ||
| ROICexc | 21.32% | ||
| ROICexgc | 34.94% | ||
| OM | 33.21% | ||
| PM (TTM) | 32.31% | ||
| GM | 80.22% | ||
| FCFM | 35.91% |
ROA(3y)12.84%
ROA(5y)7.35%
ROE(3y)15.46%
ROE(5y)8.81%
ROIC(3y)9.26%
ROIC(5y)N/A
ROICexc(3y)14.69%
ROICexc(5y)N/A
ROICexgc(3y)27.93%
ROICexgc(5y)N/A
ROCE(3y)10.3%
ROCE(5y)N/A
ROICexcg growth 3Y30.89%
ROICexcg growth 5YN/A
ROICexc growth 3Y66.38%
ROICexc growth 5YN/A
OM growth 3Y64.05%
OM growth 5YN/A
PM growth 3Y79.62%
PM growth 5YN/A
GM growth 3Y0.7%
GM growth 5Y0.71%
F-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 71.91% | ||
| Cap/Sales | 5.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.33% | ||
| Profit Quality | 111.17% | ||
| Current Ratio | 8.44 | ||
| Quick Ratio | 7.89 | ||
| Altman-Z | 14.5 |
F-Score8
WACC11.01%
ROIC/WACC1.2
Cap/Depr(3y)54.47%
Cap/Depr(5y)51.24%
Cap/Sales(3y)5.02%
Cap/Sales(5y)6.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.49%
EPS 3Y10.73%
EPS 5Y14.14%
EPS Q2Q%19.15%
EPS Next Y36.24%
EPS Next 2Y25.8%
EPS Next 3Y22.11%
EPS Next 5Y21.01%
Revenue 1Y (TTM)20.71%
Revenue growth 3Y19.24%
Revenue growth 5Y19.59%
Sales Q2Q%18.46%
Revenue Next Year22.44%
Revenue Next 2Y17.98%
Revenue Next 3Y17.54%
Revenue Next 5Y9.86%
EBIT growth 1Y115.07%
EBIT growth 3Y95.61%
EBIT growth 5YN/A
EBIT Next Year36.44%
EBIT Next 3Y19.54%
EBIT Next 5YN/A
FCF growth 1Y15.85%
FCF growth 3Y0.76%
FCF growth 5Y10.38%
OCF growth 1Y17.78%
OCF growth 3Y3.3%
OCF growth 5Y12.41%