RAMBUS INC (RMBS) Stock Fundamental Analysis
NASDAQ:RMBS - Nasdaq - US7509171069 - Common Stock - Currency: USD
Taking everything into account, RMBS scores 6 out of 10 in our fundamental rating. RMBS was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. RMBS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RMBS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RMBS was profitable.
RMBS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: RMBS reported negative net income in multiple years.
RMBS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RMBS has a better Return On Assets (14.08%) than 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 16.96%, RMBS is in the better half of the industry, outperforming 76.85% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.08%, RMBS belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RMBS is significantly below the industry average of 11.99%.
The 3 year average ROIC (4.95%) for RMBS is below the current ROIC(11.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.08% | ||
| ROE | 16.96% | ||
| ROIC | 11.08% |
ROA(3y)8.87%
ROA(5y)3.39%
ROE(3y)10.82%
ROE(5y)3.84%
ROIC(3y)4.95%
ROIC(5y)N/A
1.3 Margins
RMBS has a better Profit Margin (34.03%) than 94.44% of its industry peers.
Looking at the Operating Margin, with a value of 31.88%, RMBS belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
Looking at the Gross Margin, with a value of 80.16%, RMBS belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
RMBS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.88% | ||
| PM (TTM) | 34.03% | ||
| GM | 80.16% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.97%
GM growth 5Y0.21%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RMBS is destroying value.
RMBS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 20.51 indicates that RMBS is not in any danger for bankruptcy at the moment.
The Altman-Z score of RMBS (20.51) is better than 87.96% of its industry peers.
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 | 20.51 |
ROIC/WACC0.79
WACC14.02%
2.3 Liquidity
RMBS has a Current Ratio of 8.26. This indicates that RMBS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 8.26, RMBS belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
RMBS has a Quick Ratio of 7.60. This indicates that RMBS is financially healthy and has no problem in meeting its short term obligations.
RMBS has a better Quick ratio (7.60) than 93.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.26 | ||
| Quick Ratio | 7.6 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.49% over the past year.
The Earnings Per Share has been growing by 14.14% on average over the past years. This is quite good.
EPS 1Y (TTM)4.49%
EPS 3Y10.73%
EPS 5Y14.14%
EPS Q2Q%19.15%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%18.46%
3.2 Future
RMBS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.68% yearly.
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 Y34.33%
EPS Next 2Y25.14%
EPS Next 3Y20.68%
EPS Next 5YN/A
Revenue Next Year21.91%
Revenue Next 2Y17.32%
Revenue Next 3Y16.47%
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.
4. Valuation
4.1 Price/Earnings Ratio
RMBS is valuated quite expensively with a Price/Earnings ratio of 36.26.
Based on the Price/Earnings ratio, RMBS is valued a bit cheaper than 65.74% of the companies in the same industry.
When comparing the Price/Earnings ratio of RMBS to the average of the S&P500 Index (28.47), we can say RMBS is valued slightly more expensively.
The Price/Forward Earnings ratio is 27.00, which means the current valuation is very expensive for RMBS.
67.59% of the companies in the same industry are more expensive than RMBS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 92.74. RMBS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.26 | ||
| Fwd PE | 27 |
4.2 Price Multiples
61.11% of the companies in the same industry are more expensive than RMBS, based on the Enterprise Value to EBITDA ratio.
75.00% of the companies in the same industry are more expensive than RMBS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.67 | ||
| EV/EBITDA | 29.44 |
4.3 Compensation for Growth
RMBS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of RMBS may justify a higher PE ratio.
A more expensive valuation may be justified as RMBS's earnings are expected to grow with 20.68% in the coming years.
PEG (NY)1.06
PEG (5Y)2.56
EPS Next 2Y25.14%
EPS Next 3Y20.68%
5. Dividend
5.1 Amount
RMBS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RAMBUS INC
NASDAQ:RMBS (2/5/2025, 3:13:45 PM)
67.4499
+3.01 (+4.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.87%
Inst Owner Change-1.13%
Ins Owners0.66%
Ins Owner Change-0.37%
Market Cap7.19B
Analysts81.43
Price Target69.65 (3.26%)
Short Float %2.6%
Short Ratio3.07
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)-5.16%
Min EPS beat(2)-7.54%
Max EPS beat(2)-2.79%
EPS beat(4)1
Avg EPS beat(4)-6.26%
Min EPS beat(4)-17.56%
Max EPS beat(4)2.85%
EPS beat(8)5
Avg EPS beat(8)-0.86%
EPS beat(12)6
Avg EPS beat(12)-6%
EPS beat(16)10
Avg EPS beat(16)-2%
Revenue beat(2)0
Avg Revenue beat(2)-4.95%
Min Revenue beat(2)-6.73%
Max Revenue beat(2)-3.17%
Revenue beat(4)0
Avg Revenue beat(4)-5.71%
Min Revenue beat(4)-12.45%
Max Revenue beat(4)-0.5%
Revenue beat(8)0
Avg Revenue beat(8)-12.05%
Revenue beat(12)0
Avg Revenue beat(12)-15.09%
Revenue beat(16)0
Avg Revenue beat(16)-18.72%
PT rev (1m)0%
PT rev (3m)2.69%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-1%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-6.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.26 | ||
| Fwd PE | 27 | ||
| P/S | 13.88 | ||
| P/FCF | 35.67 | ||
| P/OCF | 31.74 | ||
| P/B | 6.92 | ||
| P/tB | 9.81 | ||
| EV/EBITDA | 29.44 |
EPS(TTM)1.86
EY2.76%
EPS(NY)2.5
Fwd EY3.7%
FCF(TTM)1.89
FCFY2.8%
OCF(TTM)2.13
OCFY3.15%
SpS4.86
BVpS9.75
TBVpS6.88
PEG (NY)1.06
PEG (5Y)2.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.08% | ||
| ROE | 16.96% | ||
| ROCE | 14.02% | ||
| ROIC | 11.08% | ||
| ROICexc | 17.51% | ||
| ROICexgc | 29.74% | ||
| OM | 31.88% | ||
| PM (TTM) | 34.03% | ||
| GM | 80.16% | ||
| FCFM | 38.93% |
ROA(3y)8.87%
ROA(5y)3.39%
ROE(3y)10.82%
ROE(5y)3.84%
ROIC(3y)4.95%
ROIC(5y)N/A
ROICexc(3y)8.02%
ROICexc(5y)N/A
ROICexgc(3y)18.88%
ROICexgc(5y)N/A
ROCE(3y)6.27%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.97%
GM growth 5Y0.21%
F-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 58.42% | ||
| Cap/Sales | 4.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109% | ||
| Profit Quality | 114.41% | ||
| Current Ratio | 8.26 | ||
| Quick Ratio | 7.6 | ||
| Altman-Z | 20.51 |
F-Score8
WACC14.02%
ROIC/WACC0.79
Cap/Depr(3y)40.89%
Cap/Depr(5y)40.05%
Cap/Sales(3y)4.58%
Cap/Sales(5y)5.73%
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 Y34.33%
EPS Next 2Y25.14%
EPS Next 3Y20.68%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%18.46%
Revenue Next Year21.91%
Revenue Next 2Y17.32%
Revenue Next 3Y16.47%
Revenue Next 5Y9.86%
EBIT growth 1Y161.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year15.85%
EBIT Next 3Y17.46%
EBIT Next 5Y15.13%
FCF growth 1Y-12.1%
FCF growth 3Y3.46%
FCF growth 5Y17.82%
OCF growth 1Y-9.87%
OCF growth 3Y1.82%
OCF growth 5Y17.59%