RAMBUS INC (RMBS) Stock Fundamental Analysis
NASDAQ:RMBS - Nasdaq - US7509171069 - Common Stock - Currency: USD
Taking everything into account, RMBS scores 8 out of 10 in our fundamental rating. RMBS was compared to 110 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 is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes RMBS very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
RMBS had positive earnings in the past year.
RMBS had a positive operating cash flow in the past year.
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
The Return On Assets of RMBS (15.02%) is better than 87.27% of its industry peers.
RMBS's Return On Equity of 17.87% is amongst the best of the industry. RMBS outperforms 81.82% of its industry peers.
The Return On Invested Capital of RMBS (14.97%) is better than 88.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RMBS is in line with the industry average of 10.58%.
The 3 year average ROIC (9.26%) for RMBS is below the current ROIC(14.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.02% | ||
| ROE | 17.87% | ||
| ROIC | 14.97% |
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 34.23% is amongst the best of the industry. RMBS outperforms 93.64% 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 35.99%, RMBS belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
RMBS's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 80.30%, RMBS belongs to the best of the industry, outperforming 97.27% 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 | 35.99% | ||
| PM (TTM) | 34.23% | ||
| GM | 80.3% |
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.
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
An Altman-Z score of 20.22 indicates that RMBS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 20.22, RMBS belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
RMBS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 20.22 |
ROIC/WACC1.48
WACC10.09%
2.3 Liquidity
A Current Ratio of 10.15 indicates that RMBS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 10.15, RMBS belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
RMBS has a Quick Ratio of 9.52. This indicates that RMBS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 9.52, RMBS belongs to the best of the industry, outperforming 97.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.15 | ||
| Quick Ratio | 9.52 |
3. Growth
3.1 Past
RMBS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.73%, which is quite impressive.
The Earnings Per Share has been growing by 14.14% on average over the past years. This is quite good.
The Revenue has grown by 30.14% 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)25.73%
EPS 3Y10.73%
EPS 5Y14.14%
EPS Q2Q%78.38%
Revenue 1Y (TTM)30.14%
Revenue growth 3Y19.24%
Revenue growth 5Y19.59%
Sales Q2Q%41.4%
3.2 Future
RMBS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.01% yearly.
The Revenue is expected to grow by 9.86% on average over the next years. This is quite good.
EPS Next Y36.69%
EPS Next 2Y25.3%
EPS Next 3Y22.8%
EPS Next 5Y21.01%
Revenue Next Year22.29%
Revenue Next 2Y17.37%
Revenue Next 3Y17.47%
Revenue Next 5Y9.86%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 29.83.
Based on the Price/Earnings ratio, RMBS is valued a bit cheaper than the industry average as 64.55% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RMBS to the average of the S&P500 Index (27.21), we can say RMBS is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.96, RMBS is valued on the expensive side.
65.45% 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 21.70. RMBS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.83 | ||
| Fwd PE | 21.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMBS is valued a bit cheaper than 64.55% of the companies in the same industry.
75.45% 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 | 29.53 | ||
| EV/EBITDA | 23.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RMBS has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RMBS's earnings are expected to grow with 22.80% in the coming years.
PEG (NY)0.81
PEG (5Y)2.11
EPS Next 2Y25.3%
EPS Next 3Y22.8%
5. Dividend
5.1 Amount
RMBS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
64.14
+0.12 (+0.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.43%
Inst Owner Change3.69%
Ins Owners0.76%
Ins Owner Change1.96%
Market Cap6.89B
Analysts81.33
Price Target74.97 (16.88%)
Short Float %3.42%
Short Ratio3.64
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)4.26%
Min EPS beat(2)-4.79%
Max EPS beat(2)13.32%
EPS beat(4)1
Avg EPS beat(4)-0.45%
Min EPS beat(4)-7.54%
Max EPS beat(4)13.32%
EPS beat(8)4
Avg EPS beat(8)-0.32%
EPS beat(12)6
Avg EPS beat(12)-1.21%
EPS beat(16)9
Avg EPS beat(16)-3.44%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-0.33%
Max Revenue beat(2)0.33%
Revenue beat(4)1
Avg Revenue beat(4)-2.48%
Min Revenue beat(4)-6.73%
Max Revenue beat(4)0.33%
Revenue beat(8)1
Avg Revenue beat(8)-6.48%
Revenue beat(12)1
Avg Revenue beat(12)-10.85%
Revenue beat(16)1
Avg Revenue beat(16)-14.54%
PT rev (1m)0%
PT rev (3m)0.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.79%
EPS NY rev (1m)0%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.83 | ||
| Fwd PE | 21.96 | ||
| P/S | 11.38 | ||
| P/FCF | 29.53 | ||
| P/OCF | 25.62 | ||
| P/B | 5.94 | ||
| P/tB | 8.03 | ||
| EV/EBITDA | 23.05 |
EPS(TTM)2.15
EY3.35%
EPS(NY)2.92
Fwd EY4.55%
FCF(TTM)2.17
FCFY3.39%
OCF(TTM)2.5
OCFY3.9%
SpS5.64
BVpS10.8
TBVpS7.99
PEG (NY)0.81
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.02% | ||
| ROE | 17.87% | ||
| ROCE | 16.65% | ||
| ROIC | 14.97% | ||
| ROICexc | 24.66% | ||
| ROICexgc | 39.81% | ||
| OM | 35.99% | ||
| PM (TTM) | 34.23% | ||
| GM | 80.3% | ||
| FCFM | 38.54% |
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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 85.58% | ||
| Cap/Sales | 5.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.64% | ||
| Profit Quality | 112.6% | ||
| Current Ratio | 10.15 | ||
| Quick Ratio | 9.52 | ||
| Altman-Z | 20.22 |
F-Score8
WACC10.09%
ROIC/WACC1.48
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)25.73%
EPS 3Y10.73%
EPS 5Y14.14%
EPS Q2Q%78.38%
EPS Next Y36.69%
EPS Next 2Y25.3%
EPS Next 3Y22.8%
EPS Next 5Y21.01%
Revenue 1Y (TTM)30.14%
Revenue growth 3Y19.24%
Revenue growth 5Y19.59%
Sales Q2Q%41.4%
Revenue Next Year22.29%
Revenue Next 2Y17.37%
Revenue Next 3Y17.47%
Revenue Next 5Y9.86%
EBIT growth 1Y90.81%
EBIT growth 3Y95.61%
EBIT growth 5YN/A
EBIT Next Year34%
EBIT Next 3Y19.54%
EBIT Next 5YN/A
FCF growth 1Y14.83%
FCF growth 3Y0.76%
FCF growth 5Y10.38%
OCF growth 1Y18.61%
OCF growth 3Y3.3%
OCF growth 5Y12.41%