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Rambus, Inc. (RMBS)

NEUTRAL
TechnologySemiconductorsUnited States

Fundamental

71

Price

$89.18

Market Cap

$9.38B

Part 1 · What the company is worth

Overview

Rambus Inc. manufactures and sells semiconductor products in the United States, South Korea, Singapore, and internationally. It offers memory interface chips comprising DDR5 memory interface chips which include registering clock driver, multiplexed registering clock driver, multiplexed data buffer, power management integrated circuits, serial presence detect hubs, temperature sensors, and client clock driver products; and DDR4 memory interface chips. The company also provides silicon IP, such as interface and security IP solutions that move and protect data in advanced artificial intelligence, data center, government, and automotive applications; interface IP solutions for high-speed memory and chip-to-chip digital controller IP; security IP solutions, including crypto cores, hardware roots of trust, high-speed protocol engines, and chip provisioning technologies. In addition, it offers portfolio of patents that covers memory architecture, high-speed serial links, and security products. The company sells its products to memory module manufacturers, OEMs and hyperscalers, as well as to chip makers. It 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.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$721M

Trailing 12 months (through 3/31/2026)

Net Income

$230M

Trailing 12 months (through 3/31/2026)

Free Cash Flow

$333M

Total Equity

$1.36B

Total Liabilities

$165M

Current Ratio

9.82

Interest Coverage

203.01

Debt/EBITDA

0.08

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

Fairly Valued

Fair Value

$84.95

Current Price

$89.18

Margin of Safety

-5.0%

Fair Value Range

$55.22 - $114.68

Estimation Methods

Analyst Target:$147.50
DCF:$33.27
PE-based:$56.65
Graham Growth:$35.49
EPV:$12.91
Analyst Consensus:Buy (13B / 3H / 1S)
Last Earnings Surprise:+5.39%

Valuation Metrics

P/E Ratio

41.46

ROE

16.9%

P/B Ratio

6.76

P/FCF

28.09

Gross Margin

79.5%

ROIC

14.3%

Profitability Radar

Value Creation (Economic Moat)

ROIC

14.3%

WACC

14.9%

ROIC − WACC

-0.6 pp

ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.

Fundamental Analysis Criteria

Passed (19)

  • EPS shows upward trend
  • Price CAGR 20.82%
  • ROIC 14.3%
  • Gross Margin 79.5%
  • P/FCF 28.09
  • Debt/Equity ratio
  • Operating Margin 35.9%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 17.4%
  • Revenue Growth 5Y 23.5%
  • Analyst Consensus 76% Buy
  • Earnings Quality (OCF/NI) 1.59
  • Share Dilution 0.2%
  • Piotroski F-Score 7/9

Failed (6)

  • P/B Ratio 6.76
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings Surprise avg -0.3%
  • Net Margin Trend 31.9% vs 34.2%

Unavailable (2)

  • Dividend Payout NaN%
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

1.59

High quality: earnings backed by cash

Share Dilution

0.2%

Share count is stable

Governance

Executive Team

NameTitleAge
Mr. Luc SeraphinCEO, President & Director61
Mr. Xianzhi FanEVP & COO59
Mr. John P. Shinn J.D.Senior VP, General Counsel, Chief Compliance Officer & Secretary56
Mr. Sumeet GagnejaSenior VP & CFO55
Mr. John K. AllenVP of Accounting & Chief Accounting Officer61
Mr. Shyam RamachandranSenior VP & Chief Information Officer-
Mr. Kit RodgersSenior Vice President of Technology Partnerships & Corporate Development-
Mr. Cliff BurnetteSenior VP & Chief Human Resources Officer-
Dr. Simon Blake-WilsonSenior VP & GM of Silicon IP-
Mr. Jeffry Moore Ph.D.Senior Vice President of Global Operations-

Audit Risk

4

Board Risk

2

Compensation Risk

1

Shareholder Rights Risk

5

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for RMBS, sourced from Markets Gazette.

  • 4/27/2026NEGATIVE
    Rambus Stock Sinks After Mixed Q1 Earnings Report

    Rambus Inc. reported mixed first-quarter results, leading to a significant drop in its stock price. While the company's revenue met analyst expectations, its earnings per share fell short, signaling potential operational challenges or higher-than-anticipated costs. Investors reacted negatively, reflecting concerns about profitability and future growth prospects. The market's response underscores the importance of earnings beats in maintaining investor confidence, especially for growth-oriented technology firms.

  • 4/27/2026NEUTRAL
    Rambus Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

    Rambus Inc. is scheduled to report its first-quarter earnings on April 27th. Analysts are forecasting earnings per share of $0.64 and revenue of $179.94 million. Recent analyst ratings show a mixed sentiment, with Credit Suisse maintaining a Neutral stance in February and November 2022, while Rosenblatt initiated coverage with a Buy rating in October 2021. The upcoming earnings report will be crucial for investors to assess the company's performance against these expectations and analyst outlooks, potentially influencing future stock movements.

via Markets Gazette