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

Fundamentals

Flawless balance sheet and slightly 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


Market Performance


7 Day Return

3.7%

RMBS

1.7%

US Semiconductor

1.0%

US Market


1 Year Return

43.9%

RMBS

19.8%

US Semiconductor

6.7%

US Market

Return vs Industry: RMBS exceeded the US Semiconductor industry which returned 19.8% over the past year.

Return vs Market: RMBS exceeded the US Market which returned 6.7% over the past year.


Share holder returns

RMBSIndustryMarket
7 Day3.7%1.7%1.0%
30 Day-4.9%-1.5%-1.8%
90 Day10.1%4.9%-1.8%
1 Year43.9%43.9%22.1%19.8%9.1%6.7%
3 Year14.0%14.0%80.8%70.1%46.1%36.6%
5 Year21.2%21.2%143.0%118.0%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

10%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: RMBS ($13.3) is trading below our estimate of fair value ($14.79)

Significantly Undervalued: RMBS is trading below fair value, but not by a significant amount.


Price Based on Earnings

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 Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: RMBS is good value based on its PB Ratio (1.5x) compared to the US Semiconductor industry average (2.6x).


Next Steps

Future Growth

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

136.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

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 (11.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: RMBS's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: RMBS is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Rambus performed over the past 5 years?

-60.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RMBS is unprofitable, and losses have increased over the past 5 years at a rate of -60.6% 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 (-6.2%).


Return on Equity

High ROE: RMBS has a negative Return on Equity (-17.52%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: RMBS is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RMBS is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Rambus's financial position?


Financial Position Analysis

Short Term Liabilities: RMBS's short term assets ($640.9M) exceeds its short term liabilities ($84.4M)

Long Term Liabilities: RMBS's short term assets (640.9M) exceeds its long term liabilities (254.5M)


Debt to Equity History and Analysis

Debt Level: RMBS's debt to equity ratio (14.9%) is considered satisfactory

Reducing Debt: RMBS's debt to equity ratio has reduced from 41.4% to 14.9% 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 4.410470x 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 9.4% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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

What is the CEO of Rambus's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Luc Seraphin (55yo)

1.3yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.3yrs

Average Tenure

49yo

Average Age

Experienced Management: RMBS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

60yo

Average Age

Experienced Board: RMBS's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$25,58206 Mar 19
Ellis Fisher
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$10.23
SellUS$209,09021 Feb 19
David Shrigley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,000
Max PriceUS$10.45

Ownership Breakdown


Management Team

  • Luc Seraphin (55yo)

    CEO, President & Director

    • Tenure: 1.3yrs
    • Compensation: US$2.43m
  • Paul Kocher

    Security Technology Advisor

    • Tenure: 0yrs
  • Keith Jones (49yo)

    VP, Chief Accounting Officer & Corporate Controller

    • Tenure: 0.7yrs
  • Rahul Mathur (45yo)

    Senior VP of Finance & CFO

    • Tenure: 3yrs
    • Compensation: US$1.48m
  • Kit Rodgers

    Senior Vice President of Technology Partnerships & Corporate Development

    • Tenure: 1.3yrs
  • Jae Kim (48yo)

    Senior VP

    • Tenure: 6.7yrs
    • Compensation: US$1.43m
  • Sean Fan (53yo)

    Senior VP & COO

    • Tenure: 0.2yrs
  • Jerome Nadel

    Senior VP

    • Tenure: 0yrs
  • Jeff Moore

    Senior Vice President of Global Operations

    • Tenure: 0yrs

Board Members

  • Dave Shrigley (70yo)

    Director

    • Tenure: 13yrs
    • Compensation: US$207.45k
  • Chuck Kissner (72yo)

    Chairman of the Board

    • Tenure: 0.4yrs
    • Compensation: US$392.32k
  • Eric Stang (59yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$226.12k
  • Tom Fisher (64yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$191.12k
  • Emiko Higashi (61yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$201.30k
  • Luc Seraphin (55yo)

    CEO, President & Director

    • Tenure: 1.3yrs
    • Compensation: US$2.43m
  • Meera Rao (58yo)

    Director

    • Tenure: 0.2yrs
  • Sanjay Saraf (50yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$345.02k

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$1.478b
  • Shares outstanding: 111.13m
  • 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
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: Memo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:18
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)