RAMBUS INC (RMBS) Stock Fundamental Analysis
NASDAQ:RMBS - Nasdaq - US7509171069 - Common Stock - Currency: USD
Overall RMBS gets a fundamental rating of 8 out of 10. We evaluated RMBS 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make RMBS suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year RMBS was profitable.
RMBS had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 15.02%, RMBS belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
RMBS has a better Return On Equity (17.87%) than 81.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.97%, RMBS belongs to the top of the industry, outperforming 88.18% 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 10.74%.
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
The Profit Margin of RMBS (34.23%) is better than 93.64% of its industry peers.
In the last couple of years the Profit Margin of RMBS has grown nicely.
RMBS's Operating Margin of 35.99% is amongst the best of the industry. RMBS outperforms 94.55% of its industry peers.
RMBS's Operating Margin has improved in the last couple of years.
The Gross Margin of RMBS (80.30%) is better than 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.
RMBS has less shares outstanding than it did 1 year ago.
RMBS has less shares outstanding than it did 5 years ago.
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
An Altman-Z score of 23.17 indicates that RMBS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 23.17, RMBS belongs to the best of the industry, outperforming 90.91% 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 | 23.17 |
ROIC/WACC1.58
WACC9.46%
2.3 Liquidity
A Current Ratio of 10.15 indicates that RMBS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 10.15, RMBS belongs to the top of the industry, outperforming 96.36% of the companies in the same industry.
A Quick Ratio of 9.52 indicates that RMBS has no problem at all paying its short term obligations.
The Quick ratio of RMBS (9.52) is better than 97.27% of its industry peers.
| 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 41.42%, which is quite impressive.
The Earnings Per Share has been growing by 14.14% on average over the past years. This is quite good.
RMBS shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.17%.
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)41.42%
EPS 3Y10.73%
EPS 5Y14.14%
EPS Q2Q%57.14%
Revenue 1Y (TTM)35.17%
Revenue growth 3Y19.24%
Revenue growth 5Y19.59%
Sales Q2Q%30.33%
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
Based on estimates for the next years, RMBS will show a quite strong growth in Revenue. The Revenue will grow by 9.86% on average per year.
EPS Next Y36.22%
EPS Next 2Y24.58%
EPS Next 3Y22.8%
EPS Next 5Y21.01%
Revenue Next Year22.85%
Revenue Next 2Y17.82%
Revenue Next 3Y17.14%
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
Based on the Price/Earnings ratio of 30.30, the valuation of RMBS can be described as expensive.
Based on the Price/Earnings ratio, RMBS is valued a bit cheaper than 65.45% of the companies in the same industry.
RMBS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.08, the valuation of RMBS can be described as expensive.
RMBS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.21. RMBS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.3 | ||
| Fwd PE | 25.08 |
4.2 Price Multiples
RMBS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, RMBS is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.39 | ||
| EV/EBITDA | 27.2 |
4.3 Compensation for Growth
RMBS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of RMBS may justify a higher PE ratio.
RMBS's earnings are expected to grow with 22.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)2.14
EPS Next 2Y24.58%
EPS Next 3Y22.8%
5. Dividend
5.1 Amount
No dividends for RMBS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
72.41
-1.52 (-2.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.43%
Inst Owner Change-0.05%
Ins Owners0.76%
Ins Owner Change1.96%
Market Cap7.79B
Analysts81.25
Price Target74.38 (2.72%)
Short Float %3.71%
Short Ratio4.15
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)-0.78%
PT rev (3m)-2.77%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)-1.8%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.3 | ||
| Fwd PE | 25.08 | ||
| P/S | 12.87 | ||
| P/FCF | 33.39 | ||
| P/OCF | 28.97 | ||
| P/B | 6.72 | ||
| P/tB | 9.08 | ||
| EV/EBITDA | 27.2 |
EPS(TTM)2.39
EY3.3%
EPS(NY)2.89
Fwd EY3.99%
FCF(TTM)2.17
FCFY3%
OCF(TTM)2.5
OCFY3.45%
SpS5.63
BVpS10.78
TBVpS7.97
PEG (NY)0.84
PEG (5Y)2.14
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 | 23.17 |
F-Score8
WACC9.46%
ROIC/WACC1.58
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)41.42%
EPS 3Y10.73%
EPS 5Y14.14%
EPS Q2Q%57.14%
EPS Next Y36.22%
EPS Next 2Y24.58%
EPS Next 3Y22.8%
EPS Next 5Y21.01%
Revenue 1Y (TTM)35.17%
Revenue growth 3Y19.24%
Revenue growth 5Y19.59%
Sales Q2Q%30.33%
Revenue Next Year22.85%
Revenue Next 2Y17.82%
Revenue Next 3Y17.14%
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%