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. Both the health and profitability get an excellent rating, making RMBS a very profitable company, without any liquidiy or solvency issues. RMBS has a decent growth rate and is not valued too expensively. These ratings would make RMBS suitable for 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
Looking at the Return On Assets, with a value of 14.08%, RMBS belongs to the top of the industry, outperforming 84.26% of the companies in the same industry.
The Return On Equity of RMBS (16.96%) is better than 76.85% of its industry peers.
With an excellent Return On Invested Capital value of 11.08%, RMBS belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RMBS is significantly below the industry average of 11.08%.
The last Return On Invested Capital (11.08%) for RMBS is above the 3 year average (4.95%), which is a sign of increasing profitability.
| 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
The Profit Margin of RMBS (34.03%) is better than 93.52% 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.
RMBS has a better Gross Margin (80.16%) than 97.22% of its industry peers.
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
RMBS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RMBS has been increased compared to 1 year ago.
Compared to 5 years ago, RMBS has less shares outstanding
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
RMBS has an Altman-Z score of 16.56. This indicates that RMBS is financially healthy and has little risk of bankruptcy at the moment.
RMBS has a better Altman-Z score (16.56) than 88.89% of its industry peers.
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 | 16.56 |
ROIC/WACC0.73
WACC15.09%
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's Current ratio of 8.26 is amongst the best of the industry. RMBS outperforms 94.44% of its industry peers.
A Quick Ratio of 7.60 indicates that RMBS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 7.60, RMBS belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.26 | ||
| Quick Ratio | 7.6 |
3. Growth
3.1 Past
The earnings per share for RMBS have decreased by -0.56% in the last year.
RMBS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.11% yearly.
Looking at the last year, RMBS shows a quite strong growth in Revenue. The Revenue has grown by 12.24% in the last year.
The Revenue has been growing by 14.81% on average over the past years. This is quite good.
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 20.59% 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 13.54% on average per year.
EPS Next Y14.03%
EPS Next 2Y18.54%
EPS Next 3Y17.27%
EPS Next 5Y20.59%
Revenue Next Year1.78%
Revenue Next 2Y10.76%
Revenue Next 3Y10.96%
Revenue Next 5Y13.54%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.99 indicates a quite expensive valuation of RMBS.
68.52% of the companies in the same industry are more expensive than RMBS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.53. RMBS is around the same levels.
The Price/Forward Earnings ratio is 20.51, which indicates a rather expensive current valuation of RMBS.
Based on the Price/Forward Earnings ratio, RMBS is valued a bit cheaper than 71.30% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RMBS to the average of the S&P500 Index (23.40), we can say RMBS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.99 | ||
| Fwd PE | 20.51 |
4.2 Price Multiples
67.59% 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 the industry average as 78.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.13 | ||
| EV/EBITDA | 22.7 |
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.
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 17.27% in the coming years.
PEG (NY)2.07
PEG (5Y)2.05
EPS Next 2Y18.54%
EPS Next 3Y17.27%
5. Dividend
5.1 Amount
No dividends for RMBS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RAMBUS INC
NASDAQ:RMBS (11/15/2024, 8:00:01 PM)
After market: 51.31 0 (0%)51.31
-2.04 (-3.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.99 | ||
| Fwd PE | 20.51 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.07
PEG (5Y)2.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.08% | ||
| ROE | 16.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.88% | ||
| PM (TTM) | 34.03% | ||
| GM | 80.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 8.26 | ||
| Quick Ratio | 7.6 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-0.56%
EPS 3Y25.99%
EPS 5Y
EPS Q2Q%
EPS Next Y14.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.24%
Revenue growth 3Y23.25%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
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OCF growth 3Y
OCF growth 5Y