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Rambus

Nasdaq:RMBS
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RMBS
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Semiconductors
Company description

Rambus Inc. provides semiconductor products in the United States, Japan, Europe, Taiwan, China, South Korea, Canada, Singapore, Asia, and internationally. The last earnings update was 21 days ago. More info.


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RMBS Share Price and Events
7 Day Returns
-2.5%
NasdaqGS:RMBS
-6.5%
US Semiconductor
-2.1%
US Market
1 Year Returns
-19.3%
NasdaqGS:RMBS
-12.5%
US Semiconductor
1.3%
US Market
RMBS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Rambus (RMBS) -2.5% -5.4% 3.1% -19.3% -8.5% -9.6%
US Semiconductor -6.5% -17.3% -5.5% -12.5% 65.5% 84.6%
US Market -2.1% -4.2% 0% 1.3% 33.5% 38%
1 Year Return vs Industry and Market
  • RMBS underperformed the Semiconductor industry which returned -12.5% over the past year.
  • RMBS underperformed the Market in United States of America which returned 1.3% over the past year.
Price Volatility
RMBS
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Rambus to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Rambus.

NasdaqGS:RMBS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:RMBS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.14 (1 + (1- 21%) (13.73%))
1.177
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.177 * 5.96%)
9.74%

Discounted Cash Flow Calculation for NasdaqGS:RMBS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Rambus is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:RMBS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.74%)
2019 91.40 Analyst x2 83.28
2020 90.45 Analyst x2 75.10
2021 104.90 Analyst x1 79.37
2022 109.13 Est @ 4.03% 75.24
2023 113.10 Est @ 3.64% 71.05
2024 116.91 Est @ 3.37% 66.92
2025 120.63 Est @ 3.18% 62.92
2026 124.30 Est @ 3.04% 59.08
2027 127.96 Est @ 2.95% 55.42
2028 131.65 Est @ 2.88% 51.96
Present value of next 10 years cash flows $680.34
NasdaqGS:RMBS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $131.65 × (1 + 2.73%) ÷ (9.74% – 2.73%)
$1,928.31
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,928.31 ÷ (1 + 9.74%)10
$760.99
NasdaqGS:RMBS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $680.34 + $760.99
$1,441.33
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,441.33 / 110.03
$13.1
NasdaqGS:RMBS Discount to Share Price
Calculation Result
Value per share (USD) From above. $13.10
Current discount Discount to share price of $10.94
= -1 x ($10.94 - $13.10) / $13.10
16.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Rambus is available for.
Intrinsic value
16%
Share price is $10.94 vs Future cash flow value of $13.1
Current Discount Checks
For Rambus to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Rambus's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Rambus's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Rambus's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Rambus's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:RMBS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-1.37
NasdaqGS:RMBS Share Price ** NasdaqGS (2019-05-24) in USD $10.94
United States of America Semiconductor Industry PE Ratio Median Figure of 69 Publicly-Listed Semiconductor Companies 20.57x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Rambus.

NasdaqGS:RMBS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:RMBS Share Price ÷ EPS (both in USD)

= 10.94 ÷ -1.37

-7.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rambus is loss making, we can't compare its value to the US Semiconductor industry average.
  • Rambus is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Rambus's expected growth come at a high price?
Raw Data
NasdaqGS:RMBS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -7.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
44.3%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 63 Publicly-Listed Semiconductor Companies 0.85x
United States of America Market PEG Ratio Median Figure of 2,120 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Rambus, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Rambus's assets?
Raw Data
NasdaqGS:RMBS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $9.06
NasdaqGS:RMBS Share Price * NasdaqGS (2019-05-24) in USD $10.94
United States of America Semiconductor Industry PB Ratio Median Figure of 107 Publicly-Listed Semiconductor Companies 2.44x
United States of America Market PB Ratio Median Figure of 5,207 Publicly-Listed Companies 1.8x
NasdaqGS:RMBS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:RMBS Share Price ÷ Book Value per Share (both in USD)

= 10.94 ÷ 9.06

1.21x

* Primary Listing of Rambus.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rambus is good value based on assets compared to the US Semiconductor industry average.
X
Value checks
We assess Rambus's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. Rambus has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
44.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Rambus expected to grow at an attractive rate?
  • Rambus's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Rambus's earnings growth is expected to exceed the United States of America market average.
  • Rambus's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:RMBS Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:RMBS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 44.3%
NasdaqGS:RMBS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 13.6%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 16.2%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:RMBS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:RMBS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 451 115 -48 2
2020-12-31 423 109 15 4
2019-12-31 401 110 14 4
NasdaqGS:RMBS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 233 99 -149
2018-12-31 231 87 -158
2018-09-30 265 112 -192
2018-06-30 304 95 -80
2018-03-31 342 117 -62
2017-12-31 393 117 -23
2017-09-30 389 92 10
2017-06-30 379 88 7
2017-03-31 361 95 8
2016-12-31 337 96 7
2016-09-30 316 84 23
2016-06-30 300 88 201

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Rambus's earnings are expected to grow significantly at over 20% yearly.
  • Rambus's revenue is expected to grow by 13.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:RMBS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Rambus Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:RMBS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 -0.44 -0.44 -0.44 1.00
2020-12-31 0.14 0.72 -0.45 2.00
2019-12-31 0.13 0.74 -0.48 2.00
NasdaqGS:RMBS Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -1.37
2018-12-31 -1.46
2018-09-30 -1.77
2018-06-30 -0.73
2018-03-31 -0.56
2017-12-31 -0.21
2017-09-30 0.09
2017-06-30 0.06
2017-03-31 0.07
2016-12-31 0.06
2016-09-30 0.21
2016-06-30 1.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Rambus will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Rambus's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Rambus has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Rambus performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Rambus's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Rambus does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Rambus's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Rambus's 1-year growth to the US Semiconductor industry average as it is not currently profitable.
Earnings and Revenue History
Rambus's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Rambus Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:RMBS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 233.16 -148.84 101.36 158.84
2018-12-31 231.20 -157.96 103.91 158.34
2018-09-30 264.53 -192.11 107.96 160.36
2018-06-30 303.91 -79.52 110.30 153.43
2018-03-31 342.17 -61.56 112.95 153.25
2017-12-31 393.10 -22.86 110.94 149.14
2017-09-30 388.76 9.86 104.49 148.46
2017-06-30 379.49 6.68 105.08 146.09
2017-03-31 361.27 7.95 98.94 137.32
2016-12-31 336.60 6.82 95.15 129.84
2016-09-30 315.81 23.26 86.53 116.70
2016-06-30 299.74 200.78 77.00 110.67
2016-03-31 296.05 203.76 73.35 111.10
2015-12-31 296.28 211.39 70.55 111.11
2015-09-30 291.55 206.24 72.03 113.95
2015-06-30 287.48 29.72 72.37 113.18
2015-03-31 291.18 27.90 73.65 111.66
2014-12-31 296.56 26.20 74.77 110.03
2014-09-30 297.94 8.58 85.25 108.38
2014-06-30 301.52 -2.66 68.75 108.92
2014-03-31 282.92 -15.54 72.77 112.03
2013-12-31 271.50 -33.75 79.07 117.98
2013-09-30 255.52 -40.10 68.77 124.27
2013-06-30 239.76 -92.48 90.22 127.39
2013-03-31 238.05 -116.85 93.78 134.96
2012-12-31 234.05 -134.34 99.64 140.50
2012-09-30 259.97 -146.92 101.70 143.26
2012-06-30 302.70 -88.34 104.00 144.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Rambus has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Rambus has efficiently used its assets last year compared to the US Semiconductor industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Rambus improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Rambus's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Rambus has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Rambus's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Rambus's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Rambus is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Rambus's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Rambus's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Rambus Company Filings, last reported 1 month ago.

NasdaqGS:RMBS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 999.89 165.27 305.87
2018-12-31 1,012.11 178.23 277.76
2018-09-30 1,008.32 176.84 248.17
2018-06-30 1,105.49 256.11 298.34
2018-03-31 1,119.00 253.62 291.22
2017-12-31 571.58 251.16 329.38
2017-09-30 589.54 168.96 183.63
2017-06-30 570.22 167.37 167.95
2017-03-31 601.56 165.78 187.63
2016-12-31 552.78 164.20 172.18
2016-09-30 552.84 162.64 150.79
2016-06-30 542.36 161.10 259.33
2016-03-31 534.72 159.57 225.57
2015-12-31 526.53 158.04 287.71
2015-09-30 605.86 158.17 362.88
2015-06-30 424.75 156.82 348.13
2015-03-31 405.94 155.48 317.76
2014-12-31 391.62 154.15 300.11
2014-09-30 377.60 152.84 271.13
2014-06-30 366.31 151.55 246.43
2014-03-31 351.99 318.92 403.42
2013-12-31 340.23 313.03 387.66
2013-09-30 343.12 307.73 366.36
2013-06-30 314.54 195.20 205.64
2013-03-31 315.80 191.17 214.83
2012-12-31 321.59 193.48 203.33
2012-09-30 330.83 189.75 207.09
2012-06-30 383.54 140.24 203.24
  • Rambus's level of debt (16.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (90% vs 16.5% today).
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.

  • Whilst loss making Rambus has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Rambus has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -6.7% per year.
X
Financial health checks
We assess Rambus's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Rambus has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Rambus dividends. Estimated to be 0% next year.
If you bought $2,000 of Rambus shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Rambus's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Rambus's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:RMBS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:RMBS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Rambus has not reported any payouts.
  • Unable to verify if Rambus's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Rambus's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Rambus has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Rambus's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Rambus's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Rambus afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Rambus has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Luc Seraphin
COMPENSATION $2,426,279
AGE 54
TENURE AS CEO 0.9 years
CEO Bio

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 Division at Rambus Inc. since June 28, 2018 until October 25, 2018. Mr. Seraphin served as Senior Vice President and General Manager of Memory & Interfaces Division at Rambus Inc. since November 11, 2015 until June 28, 2018. He served as Senior Vice President of Worldwide Sales & Operations at Rambus Inc. until November 11, 2015. He started his career as a field application engineer at NEC and later joined AT&T Bell Labs, which later became Lucent Technologies and Agere Systems (now LSI). During his 18 years at LSI, he held several senior positions in sales, marketing and general management. He served as Joint Managing Director of NemeriX SA. He served as an Executive Vice President and General Manager of the Wireless Business Unit. He served as Executive Vice President and General Manager of Mobile Terminals division at Agere Systems. He served as the Managing Director of NemeriX SA since October 2007. He served as World-Wide Vice President of Business Development and Sales at NemeriX SA from January 9, 2007 to October 2007. He served as the Head of Mobility division at Agere Systems Inc. Previously, he held a number of leadership positions within Agere, Lucent Technologies, AT&T and NEC in marketing, sales and applications. He served as General Manager of GPS. He served as Vice President of Worldwide Sales & Support at Sequans Communications. During his career, he has advised and supported companies in both the product and IP markets. He holds bachelor’s degree in Mathematics and Physics and a master’s degree in Electrical Engineering from Ecole Superieure de Chimie, Physique, Electronique, based in Lyon, France where he majored in Computer Architecture. He also holds an MBA from the University of Hartford and has completed the senior executive program of Columbia University.

CEO Compensation
  • Insufficient data for Luc to compare compensation growth.
  • Luc's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Rambus management team in years:

0.9
Average Tenure
51
Average Age
  • The average tenure for the Rambus management team is less than 2 years, this suggests a new team.
Management Team

Luc Seraphin

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
54
TENURE
0.9 yrs

Rahul Mathur

TITLE
Senior VP of Finance & CFO
COMPENSATION
$1M
AGE
44
TENURE
2.6 yrs

Jae Kim

TITLE
Senior VP
COMPENSATION
$1M
AGE
47
TENURE
6.3 yrs

Jeffry Moore

TITLE
Senior Vice President of Global Operations
TENURE
0.2 yrs

Keith Jones

TITLE
VP, Chief Accounting Officer & Corporate Controller
AGE
48
TENURE
0.3 yrs

Jerome Nadel

TITLE
Senior VP

Kit Rodgers

TITLE
Senior Vice President of Technology Partnerships & Corporate Development
TENURE
0.9 yrs

Mike Noonen

TITLE
Senior Vice President of Global Marketing
AGE
55
TENURE
1.3 yrs

Orna Sarfaty

TITLE
Senior Vice President of People & Culture
TENURE
0.8 yrs

Craig Hampel

TITLE
Chief Scientist of Memory & Interface Division
AGE
54
Board of Directors Tenure

Average tenure and age of the Rambus board of directors in years:

2
Average Tenure
60
Average Age
  • The average tenure for the Rambus board of directors is less than 3 years, this suggests a new board.
Board of Directors

Eric Stang

TITLE
Chairman
COMPENSATION
$226K
AGE
58
TENURE
6.2 yrs

Luc Seraphin

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
54
TENURE
0.6 yrs

Chuck Kissner

TITLE
Vice-Chairman of the Board
COMPENSATION
$392K
AGE
71
TENURE
0.9 yrs

Dave Shrigley

TITLE
Director
COMPENSATION
$207K
AGE
69
TENURE
12.6 yrs

Emiko Higashi

TITLE
Director
COMPENSATION
$201K
AGE
60
TENURE
2 yrs

Tom Fisher

TITLE
Director
COMPENSATION
$191K
AGE
63
TENURE
4.3 yrs

Sanjay Saraf

TITLE
Director
COMPENSATION
$345K
AGE
49
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Rambus insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Mar 19 Sell Ellis Fisher Individual 05. Mar 19 05. Mar 19 -2,500 $10.23 $-25,582
21. Feb 19 Sell David Shrigley Individual 20. Feb 19 20. Feb 19 -20,000 $10.45 $-209,090
03. Oct 18 Sell Charles Kissner Individual 02. Oct 18 02. Oct 18 -5,896 $10.64 $-62,446
X
Management checks
We assess Rambus's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Rambus has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is It Too Late To Consider Buying Rambus Inc. (NASDAQ:RMBS)?

According to my valuation model, Rambus seems to be fairly priced at around 14% below my intrinsic value, which means if you buy Rambus today, you’d be paying a reasonable price for it. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … RMBS’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

How Much Of Rambus Inc. (NASDAQ:RMBS) Do Institutions Own?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Companies that used to be publicly owned tend to have lower insider ownership. … With a market capitalization of US$1.3b, Rambus is a decent size, so it is probably on the radar of institutional investors.

Simply Wall St -

What Are Analysts Saying About Rambus Inc.'s (NASDAQ:RMBS) Future?

The most recent earnings update Rambus Inc.'s (NASDAQ:RMBS) released in December 2018 … that losses became smaller relative to the prior year's level … as a result of recent tailwinds

Simply Wall St -

If You Had Bought Rambus Stock Three Years Ago, You'd Be Sitting On A 23% Loss, Today

Because Rambus is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. … Over the last three years, Rambus's revenue dropped 2.1% per year.

Simply Wall St -

Have Insiders Been Selling Rambus Inc. (NASDAQ:RMBS) Shares This Year?

So we'll take a look at whether insiders have been buying or selling shares in Rambus Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In the last twelve months, the biggest single sale by an insider was when Chairman Eric Stang sold US$74k worth of shares at a price of US$12.33 per share

Simply Wall St -

Do Institutions Own Rambus Inc. (NASDAQ:RMBS) Shares?

(NASDAQ:RMBS), then you'll have to look at the makeup of its share registry. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … institutions own shares in the company.

Simply Wall St -

What You Must Know About Rambus Inc's (NASDAQ:RMBS) Major Investors

Today, I will be analyzing Rambus Inc’s (NASDAQ:RMBS) recent ownership structure, an important but not-so-popular subject among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … While these are more of a long-term investor’s concern, short-term investors may find the impact of institutional trading overwhelming enough to lose out on what could be a potential opportunity.

Simply Wall St -

What does Rambus Inc's (NASDAQ:RMBS) Balance Sheet Tell Us About Its Future?

Rambus Inc (NASDAQ:RMBS) is a small-cap stock with a market capitalization of US$1.40b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Companies operating in the Semiconductor industry,

Simply Wall St -

A Look At The Fair Value Of Rambus Inc (NASDAQ:RMBS)

In this article I am going to calculate the intrinsic value of Rambus Inc (NASDAQ:RMBS). … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Is Rambus Inc (NASDAQ:RMBS) Undervalued?

According to my valuation model, Rambus seems to be fairly priced at around 5% above my intrinsic value, which means if you buy Rambus today, you’d be paying a relatively reasonable price for it. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … The price seems to be trading at fair value, which means there’s less benefit from mispricing.

Simply Wall St -

Company Info

Description

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. Rambus Inc. was founded in 1990 and is headquartered in Sunnyvale, California.

Details
Name: Rambus Inc.
RMBS
Exchange: NasdaqGS
Founded: 1990
$1,203,733,834
110,030,515
Website: http://www.rambus.com
Address: Rambus Inc.
1050 Enterprise Way,
Suite 700,
Sunnyvale,
California, 94089,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS RMBS Common Stock Nasdaq Global Select US USD 14. May 1997
DB RMB Common Stock Deutsche Boerse AG DE EUR 14. May 1997
LSE 0QYL Common Stock London Stock Exchange GB USD 14. May 1997
Number of employees
Current staff
Staff numbers
796
Rambus employees.
Industry
Semiconductors
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 23:44
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.