RAMBUS INC (RMBS)
US7509171069 - Common Stock
We assign a fundamental rating of 6 out of 10 to RMBS. RMBS was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. RMBS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RMBS has a correct valuation and a medium growth rate. These ratings could make RMBS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
RMBS had positive earnings in the past year.
In the past year RMBS had a positive cash flow from operations.
In multiple years RMBS reported negative net income over the last 5 years.
Each year in the past 5 years RMBS had a positive operating cash flow.
1.2 Ratios
RMBS has a Return On Assets of 14.08%. This is amongst the best in the industry. RMBS outperforms 85.19% of its industry peers.
RMBS has a Return On Equity of 16.96%. This is in the better half of the industry: RMBS outperforms 77.78% of its industry peers.
With an excellent Return On Invested Capital value of 11.08%, RMBS belongs to the best of the industry, outperforming 82.41% 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 11.24%.
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 Profit Margin of 34.03%. This is amongst the best in the industry. RMBS outperforms 94.44% of its industry peers.
RMBS has a Operating Margin of 31.88%. This is amongst the best in the industry. RMBS outperforms 92.59% of its industry peers.
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.
Compared to 1 year ago, RMBS has more shares outstanding
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 17.25. This indicates that RMBS is financially healthy and has little risk of bankruptcy at the moment.
RMBS has a better Altman-Z score (17.25) than 88.89% 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 | 17.25 |
ROIC/WACC0.71
WACC15.53%
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.
RMBS has a better Current ratio (8.26) than 93.52% of its industry peers.
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's Quick ratio of 7.60 is amongst the best of the industry. RMBS outperforms 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.26 | ||
| Quick Ratio | 7.6 |
3. Growth
3.1 Past
RMBS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.56%.
Measured over the past years, RMBS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.11% on average per year.
The Revenue has grown by 12.24% in the past year. This is quite good.
Measured over the past years, RMBS shows a quite strong growth in Revenue. The Revenue has been growing by 14.81% on average per year.
EPS 1Y (TTM)-0.56%
EPS 3Y25.99%
EPS 5Y14.11%
EPS Q2Q%18.6%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y23.25%
Revenue growth 5Y14.81%
Sales Q2Q%38.19%
3.2 Future
The Earnings Per Share is expected to grow by 16.41% on average over the next years. This is quite good.
Based on estimates for the next years, RMBS will show a quite strong growth in Revenue. The Revenue will grow by 10.76% on average per year.
EPS Next Y14.03%
EPS Next 2Y18.23%
EPS Next 3Y17.34%
EPS Next 5Y16.41%
Revenue Next Year1.47%
Revenue Next 2Y10.81%
Revenue Next 3Y11.62%
Revenue Next 5Y10.76%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
RMBS is valuated quite expensively with a Price/Earnings ratio of 29.71.
69.44% of the companies in the same industry are more expensive than RMBS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.73, RMBS is valued at the same level.
With a Price/Forward Earnings ratio of 21.13, RMBS is valued on the expensive side.
RMBS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RMBS is cheaper than 74.07% of the companies in the same industry.
RMBS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.71 | ||
| Fwd PE | 21.13 |
4.2 Price Multiples
68.52% of the companies in the same industry are more expensive than RMBS, based on the Enterprise Value to EBITDA ratio.
78.70% 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 | 27.8 | ||
| EV/EBITDA | 23.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RMBS does not grow enough to justify the current Price/Earnings ratio.
RMBS has a very decent profitability rating, which may justify a higher PE ratio.
RMBS's earnings are expected to grow with 17.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.12
PEG (5Y)2.11
EPS Next 2Y18.23%
EPS Next 3Y17.34%
5. Dividend
5.1 Amount
RMBS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RAMBUS INC
NASDAQ:RMBS (12/20/2024, 8:00:01 PM)
After market: 54.35 +1.77 (+3.37%)52.58
-1.04 (-1.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.87%
Inst Owner Change-4.77%
Ins Owners0.66%
Ins Owner Change-0.34%
Market Cap5.60B
Analysts81.43
Price Target69.65 (32.46%)
Short Float %2.88%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)2.69%
PT rev (3m)-7.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.43%
EPS NY rev (1m)0%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-5.96%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.71 | ||
| Fwd PE | 21.13 | ||
| P/S | 10.82 | ||
| P/FCF | 27.8 | ||
| P/OCF | 24.74 | ||
| P/B | 5.39 | ||
| P/tB | 7.65 | ||
| EV/EBITDA | 23.89 |
EPS(TTM)1.77
EY3.37%
EPS(NY)2.49
Fwd EY4.73%
FCF(TTM)1.89
FCFY3.6%
OCF(TTM)2.13
OCFY4.04%
SpS4.86
BVpS9.75
TBVpS6.88
PEG (NY)2.12
PEG (5Y)2.11
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 | 17.25 |
F-Score8
WACC15.53%
ROIC/WACC0.71
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)-0.56%
EPS 3Y25.99%
EPS 5Y14.11%
EPS Q2Q%18.6%
EPS Next Y14.03%
EPS Next 2Y18.23%
EPS Next 3Y17.34%
EPS Next 5Y16.41%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y23.25%
Revenue growth 5Y14.81%
Sales Q2Q%38.19%
Revenue Next Year1.47%
Revenue Next 2Y10.81%
Revenue Next 3Y11.62%
Revenue Next 5Y10.76%
EBIT growth 1Y161.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year15.85%
EBIT Next 3Y17.05%
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%