NasdaqGS:RMBS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.5%

RMBS

-0.1%

US Semiconductor

2.0%

US Market


1 Year Return

37.2%

RMBS

40.7%

US Semiconductor

7.1%

US Market

Return vs Industry: RMBS underperformed the US Semiconductor industry which returned 39.4% over the past year.

Return vs Market: RMBS exceeded the US Market which returned 4.6% over the past year.


Shareholder returns

RMBSIndustryMarket
7 Day1.5%-0.1%2.0%
30 Day24.0%7.0%6.0%
90 Day11.9%7.3%-0.05%
1 Year37.2%37.2%43.4%40.7%9.5%7.1%
3 Year29.9%29.9%65.0%56.2%30.7%22.1%
5 Year2.5%2.5%140.9%118.1%55.6%38.0%

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?

1.83x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RMBS ($15.64) is trading above our estimate of fair value ($9.73)

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 (3x).


Next Steps

Future Growth

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

39.2%

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 (2.2%).

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's is expected to become profitable in the next 3 years.

Revenue vs Market: RMBS's revenue (8.3% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: RMBS's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Rambus performed over the past 5 years?

-66.4%

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 -66.4% 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 (-13.2%).


Return on Equity

High ROE: RMBS has a negative Return on Equity (-7.44%), as it is currently unprofitable.


Next Steps

Financial Health

How is Rambus's financial position?


Financial Position Analysis

Short Term Liabilities: RMBS's short term assets ($678.8M) exceed its short term liabilities ($80.1M).

Long Term Liabilities: RMBS's short term assets ($678.8M) exceed its long term liabilities ($273.7M).


Debt to Equity History and Analysis

Debt Level: RMBS's debt to equity ratio (15.6%) is considered satisfactory.

Reducing Debt: RMBS's debt to equity ratio has reduced from 38.3% to 15.6% 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 10.5% per year.


Next Steps

Dividend

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


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.


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?

1.9yrs

Average management tenure


CEO

Luc Seraphin (54yo)

1.92yrs

Tenure

US$4,042,561

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 ($USD4.04M) is about average for companies of similar size in the US market ($USD4.92M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Luc Seraphin
CEO, President & Director1.92yrsUS$4.04m0.0016% $28.0k
Rahul Mathur
Senior VP of Finance & CFO3.58yrsUS$1.94m0.075% $1.3m
Xianzhi Fan
Senior VP & COO0.75yrUS$3.68m0.14% $2.5m
Jae Kim
Senior VP7.25yrsUS$1.74m0.015% $257.2k
Keith Jones
VP, Chief Accounting Officer & Corporate Controller1.25yrsno data0.013% $225.0k
Kit Rodgers
Senior Vice President of Technology Partnerships & Corporate Development1.92yrsno datano data
Cliff Burnette
Senior VP & Chief Human Resources Officer0.33yrno datano data
Jeffry Moore
Senior Vice President of Global Operationsno datano datano data

1.9yrs

Average Tenure

49yo

Average Age

Experienced Management: RMBS's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Luc Seraphin
CEO, President & Director1.92yrsUS$4.04m0.0016% $28.0k
Charles Kissner
Independent Chairman of the Board1yrUS$200.35k0.073% $1.3m
Eric Stang
Independent Director11.83yrsUS$163.35k0.045% $794.0k
Emiko Higashi
Independent Director3yrsUS$149.97k0.018% $312.9k
Necip Sayiner
Independent Director0.58yrUS$186.67kno data
Meera Rao
Independent Director0.75yrUS$185.07kno data
Sanjay Saraf
Independent Director1.83yrsUS$134.97k0.0073% $128.4k

1.6yrs

Average Tenure

58yo

Average Age

Experienced Board: RMBS's board of directors are not considered experienced ( 1.6 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 2.9%.


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$1.772b
  • Shares outstanding: 113.28m
  • 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, Taiwan, South Korea, Japan, Europe, Canada, Singapore, Asia, and internationally. It offers DDR memory interface chips to module manufacturers and OEMs; physical interface and companion digital controller IPs for SoC designers; and industry-standard interface solutions, such as 28G, 32G, 56G, and 112G SerDes, as well as PCIe 5.0. The company also provides memory interface solutions that include HBM Gen2 and GDDR6; and security IP cores and protocols, as well as a portfolio of patents that covers memory architecture, high-speed serial links, and security products. In addition, it 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 markets its products and services through its direct sales force and distributors. 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 Analysis2020/05/28 02:25
End of Day Share Price2020/05/27 00:00
Earnings2020/03/31
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.