RAMBUS INC (RMBS)
US7509171069 - Common Stock
RMBS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 107 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. These ratings would make RMBS suitable 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.
The reported net income has been mixed in the past 5 years: RMBS reported negative net income in multiple years.
In the past 5 years RMBS always reported a positive cash flow from operatings.
1.2 Ratios
RMBS has a better Return On Assets (30.07%) than 99.06% of its industry peers.
Looking at the Return On Equity, with a value of 36.66%, RMBS belongs to the top of the industry, outperforming 95.28% of the companies in the same industry.
RMBS has a Return On Invested Capital of 7.75%. This is in the better half of the industry: RMBS outperforms 71.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RMBS is significantly below the industry average of 10.62%.
The last Return On Invested Capital (7.75%) for RMBS is above the 3 year average (4.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.07% | ||
| ROE | 36.66% | ||
| ROIC | 7.75% |
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 78.15%. This is amongst the best in the industry. RMBS outperforms 100.00% of its industry peers.
The Operating Margin of RMBS (23.75%) is better than 79.25% of its industry peers.
The Gross Margin of RMBS (79.50%) is better than 97.17% of its industry peers.
RMBS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.75% | ||
| PM (TTM) | 78.15% | ||
| GM | 79.5% |
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.
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 17.83. This indicates that RMBS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 17.83, RMBS belongs to the top of the industry, outperforming 90.57% of the companies in the same industry.
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 | 17.83 |
ROIC/WACC0.61
WACC12.62%
2.3 Liquidity
A Current Ratio of 6.98 indicates that RMBS has no problem at all paying its short term obligations.
RMBS has a Current ratio of 6.98. This is amongst the best in the industry. RMBS outperforms 89.62% of its industry peers.
A Quick Ratio of 6.40 indicates that RMBS has no problem at all paying its short term obligations.
RMBS has a Quick ratio of 6.40. This is amongst the best in the industry. RMBS outperforms 90.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.98 | ||
| Quick Ratio | 6.4 |
3. Growth
3.1 Past
RMBS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.19%.
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 decreased by -0.92% in the past year.
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)7.19%
EPS 3Y25.99%
EPS 5Y14.11%
EPS growth Q2Q2.27%
Revenue 1Y (TTM)-0.92%
Revenue growth 3Y23.25%
Revenue growth 5Y14.81%
Revenue growth Q2Q3.58%
3.2 Future
The Earnings Per Share is expected to grow by 18.99% on average over the next years. This is quite good.
The Revenue is expected to grow by 16.23% on average over the next years. This is quite good.
EPS Next Y16.56%
EPS Next 2Y20.03%
EPS Next 3Y18.99%
EPS Next 5YN/A
Revenue Next Year5.02%
Revenue Next 2Y14.46%
Revenue Next 3Y16.23%
Revenue Next 5YN/A
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
RMBS is valuated quite expensively with a Price/Earnings ratio of 31.68.
64.15% of the companies in the same industry are more expensive than RMBS, based on the Price/Earnings ratio.
RMBS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.38.
The Price/Forward Earnings ratio is 22.11, which indicates a rather expensive current valuation of RMBS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RMBS indicates a somewhat cheap valuation: RMBS is cheaper than 67.92% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, RMBS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.68 | ||
| Fwd PE | 22.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RMBS.
RMBS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RMBS is cheaper than 72.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.69 | ||
| EV/EBITDA | 34.92 |
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 18.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.91
PEG (5Y)2.24
EPS Next 2Y20.03%
EPS Next 3Y18.99%
5. Dividend
5.1 Amount
No dividends for RMBS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RAMBUS INC
NASDAQ:RMBS (5/10/2024, 7:16:47 PM)
After market: 56.7 0 (0%)56.7
+0.78 (+1.39%)
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 Cap6.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.68 | ||
| Fwd PE | 22.11 | ||
| 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)1.91
PEG (5Y)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.07% | ||
| ROE | 36.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.75% | ||
| PM (TTM) | 78.15% | ||
| GM | 79.5% | ||
| 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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.98 | ||
| Quick Ratio | 6.4 | ||
| 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)
Growth
EPS 1Y (TTM)7.19%
EPS 3Y25.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.92%
Revenue growth 3Y23.25%
Revenue growth 5Y
Revenue growth 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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y