RAMBUS INC (RMBS) Stock Fundamental Analysis
USA - NASDAQ:RMBS - US7509171069 - Common Stock
91.13 USD
-4.12 (-4.33%)
89.05 USD
-2.08 (-2.28%)
Taking everything into account, RMBS scores 8 out of 10 in our fundamental rating. RMBS was compared to 112 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 growing strongly while it is still valued neutral. This is a good combination! 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.
Each year in the past 5 years RMBS had a positive operating cash flow.
1.2 Ratios
RMBS has a better Return On Assets (16.27%) than 91.07% of its industry peers.
With an excellent Return On Equity value of 17.76%, RMBS belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.75%, RMBS belongs to the best of the industry, outperforming 91.96% of the companies in the same industry.
RMBS had an Average Return On Invested Capital over the past 3 years of 9.26%. This is in line with the industry average of 10.86%.
The last Return On Invested Capital (16.75%) for RMBS is above the 3 year average (9.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.27% | ||
| ROE | 17.76% | ||
| ROIC | 16.75% |
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
The Profit Margin of RMBS (33.72%) is better than 93.75% 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 36.56%, RMBS belongs to the top of the industry, outperforming 94.64% of the companies in the same industry.
In the last couple of years the Operating Margin of RMBS has grown nicely.
With an excellent Gross Margin value of 80.00%, RMBS belongs to the best of the industry, outperforming 97.32% of the companies in the same industry.
In the last couple of years the Gross Margin of RMBS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.56% | ||
| PM (TTM) | 33.72% | ||
| GM | 80% |
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
RMBS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RMBS has been reduced compared to 1 year ago.
RMBS has less shares outstanding than it did 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 53.92. This indicates that RMBS is financially healthy and has little risk of bankruptcy at the moment.
RMBS's Altman-Z score of 53.92 is amongst the best of the industry. RMBS outperforms 96.43% 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 | 53.92 |
ROIC/WACC1.56
WACC10.71%
2.3 Liquidity
RMBS has a Current Ratio of 11.61. This indicates that RMBS is financially healthy and has no problem in meeting its short term obligations.
RMBS has a better Current ratio (11.61) than 96.43% of its industry peers.
RMBS has a Quick Ratio of 11.01. This indicates that RMBS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 11.01, RMBS belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.61 | ||
| Quick Ratio | 11.01 |
3. Growth
3.1 Past
RMBS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.42%, which is quite impressive.
Measured over the past years, RMBS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.14% on average per year.
The Revenue has grown by 31.05% in the past year. This is a very strong growth!
The Revenue has been growing by 19.59% on average over the past years. This is quite good.
EPS 1Y (TTM)38.42%
EPS 3Y10.73%
EPS 5Y14.14%
EPS Q2Q%23.53%
Revenue 1Y (TTM)31.05%
Revenue growth 3Y19.24%
Revenue growth 5Y19.59%
Sales Q2Q%22.68%
3.2 Future
RMBS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.20% 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 Y36.82%
EPS Next 2Y27.9%
EPS Next 3Y23.78%
EPS Next 5Y25.2%
Revenue Next Year24.97%
Revenue Next 2Y20.42%
Revenue Next 3Y19.28%
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
RMBS is valuated quite expensively with a Price/Earnings ratio of 37.20.
Based on the Price/Earnings ratio, RMBS is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
RMBS is valuated rather expensively when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.95, which means the current valuation is very expensive for RMBS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RMBS is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RMBS to the average of the S&P500 Index (34.62), we can say RMBS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.2 | ||
| Fwd PE | 29.95 |
4.2 Price Multiples
61.61% of the companies in the same industry are more expensive than RMBS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RMBS is valued a bit cheaper than 74.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.53 | ||
| EV/EBITDA | 31.06 |
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 excellent 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 23.78% in the coming years.
PEG (NY)1.01
PEG (5Y)2.63
EPS Next 2Y27.9%
EPS Next 3Y23.78%
5. Dividend
5.1 Amount
RMBS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
91.13
-4.12 (-4.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.35%
Inst Owner Change7.75%
Ins Owners0.73%
Ins Owner Change-5.77%
Market Cap9.80B
Revenue(TTM)678.49M
Net Income(TTM)228.82M
Analysts81.25
Price Target111.78 (22.66%)
Short Float %4.14%
Short Ratio2.13
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)1
Avg EPS beat(2)-0.53%
Min EPS beat(2)-1.74%
Max EPS beat(2)0.68%
EPS beat(4)2
Avg EPS beat(4)1.87%
Min EPS beat(4)-4.79%
Max EPS beat(4)13.32%
EPS beat(8)3
Avg EPS beat(8)-2.2%
EPS beat(12)7
Avg EPS beat(12)0.05%
EPS beat(16)8
Avg EPS beat(16)-4.04%
Revenue beat(2)1
Avg Revenue beat(2)0.05%
Min Revenue beat(2)-0.32%
Max Revenue beat(2)0.41%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-0.33%
Max Revenue beat(4)0.41%
Revenue beat(8)2
Avg Revenue beat(8)-2.85%
Revenue beat(12)2
Avg Revenue beat(12)-8.03%
Revenue beat(16)2
Avg Revenue beat(16)-11.31%
PT rev (1m)17.24%
PT rev (3m)41.45%
EPS NQ rev (1m)1.93%
EPS NQ rev (3m)3.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)3.31%
Revenue NQ rev (3m)3.6%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.2 | ||
| Fwd PE | 29.95 | ||
| P/S | 14.45 | ||
| P/FCF | 33.53 | ||
| P/OCF | 30.72 | ||
| P/B | 7.61 | ||
| P/tB | 9.91 | ||
| EV/EBITDA | 31.06 |
EPS(TTM)2.45
EY2.69%
EPS(NY)3.04
Fwd EY3.34%
FCF(TTM)2.72
FCFY2.98%
OCF(TTM)2.97
OCFY3.26%
SpS6.31
BVpS11.98
TBVpS9.2
PEG (NY)1.01
PEG (5Y)2.63
Graham Number25.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.27% | ||
| ROE | 17.76% | ||
| ROCE | 18.63% | ||
| ROIC | 16.75% | ||
| ROICexc | 33.87% | ||
| ROICexgc | 62.02% | ||
| OM | 36.56% | ||
| PM (TTM) | 33.72% | ||
| GM | 80% | ||
| FCFM | 43.09% |
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
ROICexgc growth 3Y30.89%
ROICexgc 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 65.21% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.38% | ||
| Profit Quality | 127.78% | ||
| Current Ratio | 11.61 | ||
| Quick Ratio | 11.01 | ||
| Altman-Z | 53.92 |
F-Score8
WACC10.71%
ROIC/WACC1.56
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)38.42%
EPS 3Y10.73%
EPS 5Y14.14%
EPS Q2Q%23.53%
EPS Next Y36.82%
EPS Next 2Y27.9%
EPS Next 3Y23.78%
EPS Next 5Y25.2%
Revenue 1Y (TTM)31.05%
Revenue growth 3Y19.24%
Revenue growth 5Y19.59%
Sales Q2Q%22.68%
Revenue Next Year24.97%
Revenue Next 2Y20.42%
Revenue Next 3Y19.28%
Revenue Next 5Y9.86%
EBIT growth 1Y50.26%
EBIT growth 3Y95.61%
EBIT growth 5YN/A
EBIT Next Year34.84%
EBIT Next 3Y21.47%
EBIT Next 5YN/A
FCF growth 1Y77.3%
FCF growth 3Y0.76%
FCF growth 5Y10.38%
OCF growth 1Y66.07%
OCF growth 3Y3.3%
OCF growth 5Y12.41%
RAMBUS INC / RMBS FAQ
What is the ChartMill fundamental rating of RAMBUS INC (RMBS) stock?
ChartMill assigns a fundamental rating of 8 / 10 to RMBS.
Can you provide the valuation status for RAMBUS INC?
ChartMill assigns a valuation rating of 5 / 10 to RAMBUS INC (RMBS). This can be considered as Fairly Valued.
What is the profitability of RMBS stock?
RAMBUS INC (RMBS) has a profitability rating of 8 / 10.
What is the valuation of RAMBUS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RAMBUS INC (RMBS) is 37.2 and the Price/Book (PB) ratio is 7.61.
What is the financial health of RAMBUS INC (RMBS) stock?
The financial health rating of RAMBUS INC (RMBS) is 10 / 10.