RAMBUS INC (RMBS) Stock Fundamental Analysis
NASDAQ:RMBS - Nasdaq - US7509171069 - Common Stock - Currency: USD
RMBS gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. RMBS gets an excellent profitability rating and is at the same time showing great financial health properties. RMBS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, RMBS could be worth investigating further for growth and 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.
In the past 5 years RMBS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 15.02%, RMBS belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
With an excellent Return On Equity value of 17.87%, RMBS belongs to the best of the industry, outperforming 82.73% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.97%, RMBS belongs to the best of the industry, outperforming 89.09% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RMBS is in line with the industry average of 11.17%.
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
With an excellent Profit Margin value of 34.23%, RMBS belongs to the best of the industry, outperforming 93.64% of the companies in the same industry.
In the last couple of years the Profit Margin of RMBS has grown nicely.
With an excellent Operating Margin value of 35.99%, RMBS belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
In the last couple of years the Operating Margin of RMBS has grown nicely.
RMBS's Gross Margin of 80.30% is amongst the best of the industry. RMBS outperforms 97.27% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RMBS is creating some value.
The number of shares outstanding for RMBS has been reduced compared to 1 year ago.
Compared to 5 years ago, RMBS has less shares outstanding
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 17.43. 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 17.43, RMBS belongs to the top of the industry, outperforming 89.09% 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 | 17.43 |
ROIC/WACC1.31
WACC11.45%
2.3 Liquidity
A Current Ratio of 10.15 indicates that RMBS has no problem at all paying its short term obligations.
The Current ratio of RMBS (10.15) is better than 95.45% of its industry peers.
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 96.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.15 | ||
| Quick Ratio | 9.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.73% over the past year.
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.
Looking at the last year, RMBS shows a very strong growth in Revenue. The Revenue has grown by 30.14%.
Measured over the past years, RMBS shows a quite strong growth in Revenue. The Revenue has been growing by 19.59% on average per year.
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
The Earnings Per Share is expected to grow by 21.01% on average over the next years. This is a very strong growth
RMBS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.86% yearly.
EPS Next Y36.69%
EPS Next 2Y25.3%
EPS Next 3Y23.44%
EPS Next 5Y21.01%
Revenue Next Year22.21%
Revenue Next 2Y17.36%
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 rather expensively with a Price/Earnings ratio of 24.87.
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.
Compared to an average S&P500 Price/Earnings ratio of 25.82, RMBS is valued at the same level.
A Price/Forward Earnings ratio of 18.31 indicates a rather expensive 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 68.18% of the companies listed in the same industry.
RMBS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.87 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
66.36% of the companies in the same industry are more expensive than RMBS, based on the Enterprise Value to EBITDA ratio.
RMBS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RMBS is cheaper than 75.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.62 | ||
| EV/EBITDA | 19.12 |
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 23.44% in the coming years.
PEG (NY)0.68
PEG (5Y)1.76
EPS Next 2Y25.3%
EPS Next 3Y23.44%
5. Dividend
5.1 Amount
No dividends for RMBS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
53.48
-1.04 (-1.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.78%
Inst Owner Change3.57%
Ins Owners0.77%
Ins Owner Change1.87%
Market Cap5.74B
Analysts81.33
Price Target74.97 (40.18%)
Short Float %3.78%
Short Ratio3.79
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)-2%
PT rev (3m)7.64%
EPS NQ rev (1m)-1.56%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)1.18%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.87 | ||
| Fwd PE | 18.31 | ||
| P/S | 9.49 | ||
| P/FCF | 24.62 | ||
| P/OCF | 21.36 | ||
| P/B | 4.95 | ||
| P/tB | 6.7 | ||
| EV/EBITDA | 19.12 |
EPS(TTM)2.15
EY4.02%
EPS(NY)2.92
Fwd EY5.46%
FCF(TTM)2.17
FCFY4.06%
OCF(TTM)2.5
OCFY4.68%
SpS5.64
BVpS10.8
TBVpS7.99
PEG (NY)0.68
PEG (5Y)1.76
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 | 17.43 |
F-Score8
WACC11.45%
ROIC/WACC1.31
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 3Y23.44%
EPS Next 5Y21.01%
Revenue 1Y (TTM)30.14%
Revenue growth 3Y19.24%
Revenue growth 5Y19.59%
Sales Q2Q%41.4%
Revenue Next Year22.21%
Revenue Next 2Y17.36%
Revenue Next 3Y17.47%
Revenue Next 5Y9.86%
EBIT growth 1Y90.81%
EBIT growth 3Y95.61%
EBIT growth 5YN/A
EBIT Next Year36.44%
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%