NasdaqGS:RMBS

Stock Analysis Report

Executive Summary

Rambus Inc. provides semiconductor products in the United States, Japan, Europe, Taiwan, China, South Korea, Canada, Singapore, Asia, and internationally.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has Rambus's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RMBS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

RMBS

-2.8%

US Semiconductor

-1.0%

US Market


1 Year Return

48.7%

RMBS

35.7%

US Semiconductor

18.0%

US Market

Return vs Industry: RMBS exceeded the US Semiconductor industry which returned 35.7% over the past year.

Return vs Market: RMBS exceeded the US Market which returned 18% over the past year.


Shareholder returns

RMBSIndustryMarket
7 Day-2.8%-2.8%-1.0%
30 Day6.8%-0.8%0.6%
90 Day19.7%13.4%7.9%
1 Year48.7%48.7%38.3%35.7%20.4%18.0%
3 Year25.5%25.5%90.3%80.0%48.0%38.5%
5 Year31.5%31.5%149.4%125.5%72.2%53.3%

Price Volatility Vs. Market

How volatile is Rambus's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rambus undervalued compared to its fair value and its price relative to the market?

1.82x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RMBS ($15.78) is trading above our estimate of fair value ($15.04)

Significantly Below Fair Value: RMBS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RMBS is unprofitable, so we can't compare its PE Ratio to the Semiconductor industry average.

PE vs Market: RMBS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RMBS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RMBS is good value based on its PB Ratio (1.8x) compared to the US Semiconductor industry average (3.1x).


Next Steps

Future Growth

How is Rambus forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

50.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMBS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RMBS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RMBS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RMBS's revenue (19.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: RMBS's revenue (19.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RMBS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rambus performed over the past 5 years?

-65.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMBS is currently unprofitable.

Growing Profit Margin: RMBS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RMBS is unprofitable, and losses have increased over the past 5 years at a rate of -65.9% per year.

Accelerating Growth: Unable to compare RMBS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RMBS is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-28.7%).


Return on Equity

High ROE: RMBS has a negative Return on Equity (-9.31%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rambus's financial position?


Financial Position Analysis

Short Term Liabilities: RMBS's short term assets ($664.7M) exceed its short term liabilities ($86.2M).

Long Term Liabilities: RMBS's short term assets ($664.7M) exceed its long term liabilities ($281.9M).


Debt to Equity History and Analysis

Debt Level: RMBS's debt to equity ratio (15.3%) is considered satisfactory.

Reducing Debt: RMBS's debt to equity ratio has reduced from 39.4% to 15.3% over the past 5 years.


Balance Sheet

Inventory Level: RMBS has a low level of unsold assets or inventory.

Debt Coverage by Assets: RMBS's debt is covered by short term assets (assets are 4.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable RMBS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RMBS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 10.6% per year.


Next Steps

Dividend

What is Rambus's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RMBS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RMBS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RMBS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RMBS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RMBS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Luc Seraphin (55yo)

1.7yrs

Tenure

US$2,426,279

Compensation

Mr. Luc Seraphin has been the Chief Executive Officer, President and Director of Rambus Inc since October 25, 2018. He was Interim Chief Executive Officer and Acting General Manager of Memory & Interface D ...


CEO Compensation Analysis

Compensation vs Market: Luc's total compensation ($USD2.43M) is below average for companies of similar size in the US market ($USD3.80M).

Compensation vs Earnings: Insufficient data to compare Luc's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Luc Seraphin
CEO, President & Director1.7yrsUS$2.43m0.20% $3.6m
Rahul Mathur
Senior VP of Finance & CFO3.3yrsUS$1.48m0.076% $1.4m
Jae Kim
Senior VP7yrsUS$1.43m0.015% $264.3k
Xianzhi Fan
Senior VP & COO0.5yrsno data0.14% $2.6m
Keith Jones
VP, Chief Accounting Officer & Corporate Controller1yrsno data0.0088% $157.7k
Jerome Nadel
Senior VP0yrsno datano data
Kit Rodgers
Senior Vice President of Technology Partnerships & Corporate Development1.7yrsno datano data
Jeffry Moore
Senior Vice President of Global Operations0yrsno datano data
Paul Kocher
Security Technology Advisor0yrsno datano data

1.7yrs

Average Tenure

49yo

Average Age

Experienced Management: RMBS's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Luc Seraphin
CEO, President & Director1.7yrsUS$2.43m0.20% $3.6m
Charles Kissner
Chairman of the Board0.8yrsUS$392.32k0.058% $1.0m
Eric Stang
Independent Director11.6yrsUS$226.12k0.045% $815.0k
Ellis Fisher
Independent Director5.1yrsUS$191.12k0.031% $552.7k
Emiko Higashi
Independent Director2.8yrsUS$201.30k0.011% $189.6k
Necip Sayiner
Director0.3yrsno datano data
Meera Rao
Director0.5yrsno datano data
Sanjay Saraf
Independent Director1.6yrsUS$345.02kno data

1.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: RMBS's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

Rambus Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rambus Inc.
  • Ticker: RMBS
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$1.792b
  • Shares outstanding: 111.49m
  • Website: https://www.rambus.com

Number of Employees


Location

  • Rambus Inc.
  • 1050 Enterprise Way
  • Suite 700
  • Sunnyvale
  • California
  • 94089
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMBSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1997
RMBDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1997
RMBSSWX (SIX Swiss Exchange)YesCommon StockCHCHFMay 1997
0QYLLSE (London Stock Exchange)YesCommon StockGBUSDMay 1997

Biography

Rambus Inc. provides semiconductor products in the United States, Japan, Europe, Taiwan, China, South Korea, Canada, Singapore, Asia, and internationally. The company operates through three divisions: Memory and Interfaces, Rambus Security, and Emerging Solutions. The Memory and Interfaces division engages in the design, development, and manufacturing through partnerships and licensing of technology and solutions related to memory and interfaces. It offers standards-compatible memory and SerDes solutions, including server DIMM memory interface chips, architectures, and IP cores for high-speed memory and SerDes interfaces. The Rambus Security division is involved in the design, development, deployment, and licensing of technologies for chip, system and in-field application security, anti-counterfeiting, smart ticketing, and mobile payments. It provides a suite of products and services from DPA countermeasures and cores to CryptoManager platform, mobile payments, and smart ticketing. The Emerging Solutions division engages in the research and development in the area of emerging technologies. The company also offers technology licenses to support the implementation and adoption of technology in their products or services; and a range of services, which include know-how and technology transfer, product design and development, system integration, and other services. The company has a strategic collaboration with Infineon Technologies AG to promote smart ticketing solutions for mobile and smart cards. Rambus Inc. was founded in 1990 and is headquartered in Sunnyvale, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 01:04
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.