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RMBS

Rambus NasdaqGS:RMBS Stock Report

Last Price

US$26.88

Market Cap

US$3.0b

7D

6.3%

1Y

7.9%

Updated

06 Aug, 2022

Data

Company Financials +
RMBS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health6/6
Dividends0/6

RMBS Stock Overview

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

Rewards

Trading at 15.4% below our estimate of its fair value

Earnings are forecast to grow 115.11% per year

Risk Analysis

No risks detected for RMBS from our risk checks.

Rambus Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Rambus
Historical stock prices
Current Share PriceUS$26.88
52 Week HighUS$33.75
52 Week LowUS$20.00
Beta1.22
1 Month Change25.20%
3 Month Change4.27%
1 Year Change7.91%
3 Year Change124.37%
5 Year Change112.83%
Change since IPO255.44%

Recent News & Updates

Aug 01

Rambus GAAP EPS of $0.31, revenue of $121.1M

Rambus press release (NASDAQ:RMBS): Q2 GAAP EPS of $0.31. Revenue of $121.1M (+42.6% Y/Y). For the third quarter of 2022, the Company expects licensing billings to be between $63 million and $69 million. The Company also expects royalty revenue to be between $29 million and $35 million, product revenue to be between $51 million and $57 million and contract and other revenue to be between $18 million and $24 million.

Jul 22
Rambus (NASDAQ:RMBS) May Have Issues Allocating Its Capital

Rambus (NASDAQ:RMBS) May Have Issues Allocating Its Capital

When we're researching a company, it's sometimes hard to find the warning signs, but there are some financial metrics...

Jul 04
Is Now The Time To Look At Buying Rambus Inc. (NASDAQ:RMBS)?

Is Now The Time To Look At Buying Rambus Inc. (NASDAQ:RMBS)?

While Rambus Inc. ( NASDAQ:RMBS ) might not be the most widely known stock at the moment, it saw significant share...

Shareholder Returns

RMBSUS SemiconductorUS Market
7D6.3%3.1%1.0%
1Y7.9%-7.8%-12.9%

Return vs Industry: RMBS exceeded the US Semiconductor industry which returned -7.8% over the past year.

Return vs Market: RMBS exceeded the US Market which returned -12.8% over the past year.

Price Volatility

Is RMBS's price volatile compared to industry and market?
RMBS volatility
RMBS Average Weekly Movement5.7%
Semiconductor Industry Average Movement8.4%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: RMBS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RMBS's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1990690Luc Seraphinhttps://www.rambus.com

Rambus Inc. provides semiconductor products in the United States, Taiwan, South Korea, Japan, Europe, Canada, Singapore, China, and internationally. The company offers DDR memory interface chips, including DDR5, DDR4 and DDR3 memory interface chips to module manufacturers and OEMs; silicon IP comprising, interface and security IP solutions that move and protect data in advanced applications; and physical interface and digital controller IP to offer industry-leading, integrated memory and interconnect subsystems. It also provides a portfolio of patents that covers memory architecture, high-speed serial links, and security products.

Rambus Fundamentals Summary

How do Rambus's earnings and revenue compare to its market cap?
RMBS fundamental statistics
Market CapUS$2.97b
Earnings (TTM)-US$21.42m
Revenue (TTM)US$393.25m

7.6x

P/S Ratio

-138.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RMBS income statement (TTM)
RevenueUS$393.25m
Cost of RevenueUS$69.16m
Gross ProfitUS$324.09m
Other ExpensesUS$345.50m
Earnings-US$21.42m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.19
Gross Margin82.41%
Net Profit Margin-5.45%
Debt/Equity Ratio5.9%

How did RMBS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is RMBS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RMBS?

Other financial metrics that can be useful for relative valuation.

RMBS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.9x
Enterprise Value/EBITDA26x
PEG Ration/a

Price to Sales Ratio vs Peers

How does RMBS's PS Ratio compare to its peers?

RMBS PS Ratio vs Peers
The above table shows the PS ratio for RMBS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average5.9x
JKS JinkoSolar Holding
0.4x15.7%US$3.1b
AMBA Ambarella
9.6x21.8%US$3.4b
DIOD Diodes
1.9x3.3%US$3.7b
CSIQ Canadian Solar
0.5x6.0%US$2.5b
RMBS Rambus
7.6x12.0%US$3.0b

Price-To-Sales vs Peers: RMBS is expensive based on its Price-To-Sales Ratio (7.6x) compared to the peer average (5.9x).


Price to Earnings Ratio vs Industry

How does RMBS's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Sales vs Industry: RMBS is expensive based on its Price-To-Sales Ratio (7.6x) compared to the US Semiconductor industry average (4x)


Price to Sales Ratio vs Fair Ratio

What is RMBS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RMBS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.6x
Fair PS Ratio9.6x

Price-To-Sales vs Fair Ratio: RMBS is good value based on its Price-To-Sales Ratio (7.6x) compared to the estimated Fair Price-To-Sales Ratio (9.6x).


Share Price vs Fair Value

What is the Fair Price of RMBS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RMBS ($26.88) is trading below our estimate of fair value ($31.76)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Rambus forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


115.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMBS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: RMBS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RMBS is expected to become profitable in the next 3 years.

Revenue vs Market: RMBS's revenue (12% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: RMBS's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RMBS's Return on Equity is forecast to be low in 3 years time (12.4%).


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Past Performance

How has Rambus performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


18.3%

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, but has reduced losses over the past 5 years at a rate of 18.3% 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 (51%).


Return on Equity

High ROE: RMBS has a negative Return on Equity (-2.56%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Rambus's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: RMBS's short term assets ($581.1M) exceed its short term liabilities ($161.4M).

Long Term Liabilities: RMBS's short term assets ($581.1M) exceed its long term liabilities ($111.3M).


Debt to Equity History and Analysis

Debt Level: RMBS has more cash than its total debt.

Reducing Debt: RMBS's debt to equity ratio has reduced from 29.3% to 5.9% over the past 5 years.


Balance Sheet


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 16.6% per year.


Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RMBS has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.8yrs

Average management tenure


CEO

Luc Seraphin (58 yo)

4.17yrs

Tenure

US$5,761,497

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 ($USD5.76M) is about average for companies of similar size in the US market ($USD6.58M).

Compensation vs Earnings: Luc's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: RMBS's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: RMBS's board of directors are considered experienced (3.8 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Rambus Inc.
  • Ticker: RMBS
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: US$2.971b
  • Shares outstanding: 110.53m
  • Website: https://www.rambus.com

Number of Employees


Location

  • Rambus Inc.
  • 4453 North First Street
  • Suite 100
  • San Jose
  • California
  • 95134
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.