Rambus Inc.
Rambus Inc. Fundamental Analysis
Rambus Inc. (RMB.DE) shows strong financial fundamentals with a PE ratio of 29.16, profit margin of 36.16%, and ROE of 10.27%. The company generates $0.3B in annual revenue with strong year-over-year growth of 20.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RMB.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakRMB.DE struggles to generate sufficient returns from assets.
Valuation Score
WeakRMB.DE trades at a premium to fair value.
Growth Score
ModerateRMB.DE shows steady but slowing expansion.
Financial Health Score
ExcellentRMB.DE maintains a strong and stable balance sheet.
Profitability Score
ModerateRMB.DE maintains healthy but balanced margins.
Key Financial Metrics
Is RMB.DE Expensive or Cheap?
P/E Ratio
RMB.DE trades at 29.16 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RMB.DE's PEG of 10.16 indicates potential overvaluation.
Price to Book
The market values Rambus Inc. at 2.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 26.03 times EBITDA. This signals the market has high growth expectations.
How Well Does RMB.DE Make Money?
Net Profit Margin
For every $100 in sales, Rambus Inc. keeps $36.16 as profit after all expenses.
Operating Margin
Core operations generate 36.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.27 in profit for every $100 of shareholder equity.
ROA
Rambus Inc. generates $8.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rambus Inc. generates strong operating cash flow of $123.11M, reflecting robust business health.
Free Cash Flow
Rambus Inc. generates strong free cash flow of $106.47M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.96 in free cash annually.
FCF Yield
RMB.DE converts 3.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How RMB.DE Stacks Against Its Sector Peers
| Metric | RMB.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.16 | 35.89 | Better (Cheaper) |
| ROE | 10.27% | 1172.00% | Weak |
| Net Margin | 36.16% | -134190.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 7.86 | Strong (Low Leverage) |
| Current Ratio | 8.44 | 5.79 | Strong Liquidity |
| ROA | 8.25% | -309362.00% (disorted) | Weak |
RMB.DE outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rambus Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
156.58%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
305.37%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
85.27%
Industry Style: Growth, Innovation, High Beta
High Growth