Rambus (RMBS) AI Stock Analysis

• Market Cap: $7.94B
• Dividend Yield: N/A
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 34.9
• Beta (1Y): 2.04
• Revenue Growth: 35.17%
• EPS Growth: 0.10%
• Country: US
• Employees: 712
• Sector: Technology
• Sector Strength: 87
• Industry: Semiconductors
• EPS (TTM): 0.66
• Shares Outstanding: 107,593,820
• 10 Day Avg. Volume: 1,283,464
• 30 Day Avg. Volume: 1,387,824
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 9.88
• Enterprise Value/Gross Profit: 12.31
• Enterprise Value/Ebitda: 21.32
• 1Y Price Target: $81.13
• Price Target Upside: 9.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 79 Outperform
• Price Target: $84.00 ▲(13.87% Upside)

Rambus's strong financial performance and positive earnings call are the most significant factors contributing to its high overall score. The company's robust revenue growth, profitability, and strategic positioning in the semiconductor industry are key strengths. Technical analysis supports a positive trend, although valuation concerns due to a high P/E ratio slightly temper the outlook.

Positive Factors

Market Expansion

MRDIMMs are considered a positive sentiment driver for Rambus, with significant opportunities anticipated from 2026 onwards.

Revenue Growth

Rambus is projected to present a revenue compound annual growth rate of over 20%, with a clear path to increased earnings per share.

Valuation

Analyst reiterates 'Outperform' rating on RMBS due to its attractive valuation among higher growth semiconductor stocks with a strong free cash flow profile.

Negative Factors

Market Visibility

Rambus currently does not see a direct impact from tariffs, but notes that dynamics are fluid and result in limited visibility.

Revenue Fluctuation

Contract Revenue came in lower due to selling lower customizable IP.

Rambus Business Overview & Revenue Model

Company Description

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. The company markets its products and services through its direct sales force and distributors. Rambus Inc. was incorporated in 1990 and is headquartered in San Jose, California.

How the Company Makes Money

Rambus generates revenue primarily through licensing its intellectual property, which includes patented technologies related to memory interfaces, cryptography, and security solutions. The company has established key partnerships with major semiconductor manufacturers and technology firms, allowing it to monetize its innovations through licensing agreements and royalties. Additionally, Rambus provides engineering services and custom solutions, contributing to its revenue streams. Significant collaboration with industry leaders in the semiconductor space further enhances its earnings potential, as these partnerships often lead to long-term contracts and recurring revenue.

Rambus Financial Statement Overview

Summary

Rambus demonstrates strong financial performance with impressive revenue growth, high profitability margins, and robust cash flow. The company's low leverage and effective equity utilization further enhance its financial stability, positioning it well within the semiconductor industry.

Income Statement

Rambus has demonstrated strong revenue growth with a 6.62% increase in TTM, supported by high gross and net profit margins of 80.29% and 35.49%, respectively. The EBIT and EBITDA margins are also robust at 40.01% and 46.36%. These metrics indicate a healthy profitability and operational efficiency, positioning Rambus well within the semiconductor industry.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.0227, reflecting minimal leverage and financial risk. Return on equity is solid at 20.15%, indicating effective use of equity capital. The equity ratio stands at 83.66%, showcasing a strong equity base relative to total assets, which contributes to financial stability.

Cash Flow

Rambus exhibits a healthy free cash flow growth rate of 12.33% in TTM, with a strong operating cash flow to net income ratio of 4.05. The free cash flow to net income ratio is also high at 0.90, indicating efficient cash generation relative to net income, supporting future growth and investment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	645.49M	556.62M	461.12M	454.79M	328.30M	246.32M
Gross Profit	518.26M	446.52M	357.69M	347.21M	257.91M	182.00M
EBITDA	299.24M	239.27M	241.09M	41.17M	76.43M	21.99M
Net Income	229.10M	179.82M	333.90M	-14.31M	18.33M	-40.47M
Balance Sheet
Total Assets	1.47B	1.34B	1.26B	1.01B	1.23B	1.25B
Cash, Cash Equivalents and Short-Term Investments	594.83M	481.80M	425.84M	313.23M	485.61M	502.65M
Total Debt	27.94M	30.15M	30.71M	44.48M	198.78M	195.06M
Total Liabilities	239.83M	222.44M	220.13M	233.30M	370.25M	338.70M
Stockholders Equity	1.23B	1.12B	1.04B	779.30M	862.40M	912.71M
Cash Flow
Free Cash Flow	262.09M	199.90M	172.55M	209.91M	195.43M	155.73M
Operating Cash Flow	292.83M	230.60M	195.79M	230.39M	209.22M	185.46M
Investing Cash Flow	-227.08M	-56.72M	-57.40M	151.98M	-115.66M	-90.39M
Financing Cash Flow	-102.69M	-167.99M	-169.62M	-362.94M	-114.21M	-61.19M

Rambus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMBS, the sentiment is Positive. The current price of 73.77 is below the 20-day moving average (MA) of 73.99, above the 50-day MA of 68.99, and above the 200-day MA of 59.08, indicating a neutral trend. The MACD of 1.85 indicates Positive momentum. The RSI at 52.25 is Neutral, neither overbought nor oversold. The STOCH value of 75.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMBS.

Rambus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVMI	84 Outperform	$7.76B	35.99	24.23%	―	43.69%	51.22%
RMBS	79 Outperform	$7.94B	34.91	20.30%	―	35.17%	0.10%
ONTO	79 Outperform	$5.19B	26.24	10.53%	―	15.51%	20.31%
LSCC	75 Outperform	$9.09B	289.87	4.57%	―	-22.15%	-83.34%
QRVO	72 Outperform	$8.40B	105.86	2.33%	―	-8.84%	―
Sector *	61 Neutral	$35.45B	7.89	-10.11%	1.88%	8.47%	-9.45%
SLAB	57 Neutral	$4.41B	―	-9.71%	―	29.66%	47.97%