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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
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.
Each year in the past 5 years RMBS had a positive operating cash flow.
1.2 Ratios
RMBS has a better Return On Assets (15.02%) than 87.27% of its industry peers.
Looking at the Return On Equity, with a value of 17.87%, RMBS belongs to the top of the industry, outperforming 81.82% 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 88.18% of the companies in the same industry.
RMBS had an Average Return On Invested Capital over the past 3 years of 9.26%. This is in line with the industry average of 10.57%.
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.
RMBS's Profit Margin has improved in the last couple of years.
The Operating Margin of RMBS (35.99%) is better than 94.55% of its industry peers.
RMBS's Operating Margin has improved in the last couple of years.
RMBS has a Gross Margin of 80.30%. This is amongst the best in the industry. RMBS outperforms 97.27% of its industry peers.
RMBS's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RMBS is still creating some value.
Compared to 1 year ago, RMBS has less shares outstanding
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 19.24. This indicates that RMBS is financially healthy and has little risk of bankruptcy at the moment.
RMBS's Altman-Z score of 19.24 is amongst the best of the industry. RMBS outperforms 89.09% of its industry peers.
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 | 19.24 |
ROIC/WACC1.49
WACC10.02%
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 96.36% of its industry peers.
A Quick Ratio of 9.52 indicates that RMBS has no problem at all paying its short term obligations.
RMBS has a better Quick ratio (9.52) 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 25.73%, which is quite impressive.
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.
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.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.02, RMBS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RMBS is valued a bit cheaper than the industry average as 66.36% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RMBS to the average of the S&P500 Index (26.31), we can say RMBS is valued inline with the index average.
A Price/Forward Earnings ratio of 19.90 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 63.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, RMBS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.02 | ||
| Fwd PE | 19.9 |
4.2 Price Multiples
65.45% of the companies in the same industry are more expensive than RMBS, based on the Enterprise Value to EBITDA ratio.
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 | 26.75 | ||
| EV/EBITDA | 21.66 |
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)0.74
PEG (5Y)1.91
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 |
58.1
-2.56 (-4.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.78%
Inst Owner Change3.69%
Ins Owners0.77%
Ins Owner Change1.69%
Market Cap6.24B
Analysts81.33
Price Target74.97 (29.04%)
Short Float %3.57%
Short Ratio3.5
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)-0.73%
EPS NQ rev (3m)-1.79%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.02 | ||
| Fwd PE | 19.9 | ||
| P/S | 10.31 | ||
| P/FCF | 26.75 | ||
| P/OCF | 23.21 | ||
| P/B | 5.38 | ||
| P/tB | 7.28 | ||
| EV/EBITDA | 21.66 |
EPS(TTM)2.15
EY3.7%
EPS(NY)2.92
Fwd EY5.03%
FCF(TTM)2.17
FCFY3.74%
OCF(TTM)2.5
OCFY4.31%
SpS5.64
BVpS10.8
TBVpS7.99
PEG (NY)0.74
PEG (5Y)1.91
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 | 19.24 |
F-Score8
WACC10.02%
ROIC/WACC1.49
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 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%