A Business at a Glance
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Rambus is a global semiconductor company providing industry-leading chips and silicon IP for data-intensive computing systems, focusing on data center and artificial intelligence (“AI”) infrastructure. As a pioneer with over three decades of advanced semiconductor design experience, Rambus is at the forefront of enabling the next era of AI-driven computing, addressing the critical challenges of signal and power integrity at increasingly extreme data rates in the data center, edge and client markets. We are a leader in high-performance memory subsystems, offering a balanced and diverse portfolio of products, IP and patents that maximize performance and security in computationally intensive systems. The ongoing proliferation of AI is placing unprecedented demands on computing infrastructure, requiring massive amounts of processor performance and extremely high memory bandwidth.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 708M | 708M | 557M | 461M | 455M | 328M |
| Net Income | 230M | 230M | 180M | 334M | -14M | 18M |
| EPS | $2.11 | $2.11 | $1.65 | $3.01 | $-0.13 | $0.16 |
| Free Cash Flow | 333M | 333M | 200M | 173M | 213M | 195M |
| ROIC | 17.6% | 33.6% | 24.6% | 29.3% | 14.8% | 2.6% |
| Gross Margin | 79.6% | 79.6% | 80.2% | 77.6% | 76.3% | 78.6% |
| Debt/Equity | 0.02 | 0.02 | 0.03 | 0.03 | 0.07 | 0.42 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 260M | 260M | 183M | 189M | 77M | 24M |
| Operating Margin | 36.8% | 36.8% | 32.9% | 40.9% | 16.9% | 7.4% |
| ROE | 16.9% | 18.5% | 16.0% | 32.2% | -1.8% | 2.1% |
| Shares Outstanding | 109M | 109M | 109M | 111M | 110M | 115M |
RAMBUS INC passes 7 of 9 quality checks, indicating strong fundamentals.
RAMBUS INC trades at 57.7x trailing earnings, compared to its 15-year median P/E of 32.9x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 39.4x vs a median of 17.7x. The company's 5-year average ROIC is 21.0% with a gross margin of 78.5%. At current prices, the estimated annualized return to fair value is +14.8%.
RAMBUS INC (RMBS) has a current P/E ratio of 57.7, compared to its historical median P/E of 32.9. The stock is currently considered Expensive based on its historical valuation range.
RAMBUS INC (RMBS) has a 5-year average return on invested capital (ROIC) of 21.0%. This indicates strong capital allocation and a potential competitive advantage.
RAMBUS INC (RMBS) has a market capitalization of $13.3B. It is classified as a large-cap stock.
RAMBUS INC (RMBS) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 0.05%.
Based on historical P/E analysis, RAMBUS INC (RMBS) appears expensive. The current P/E of 57.7 is 76% above its historical median of 32.9. The estimated fair value CAGR (P/E method) is 51.1%.
RAMBUS INC (RMBS) operates in the Semiconductors & Related Devices industry, within the Technology sector.
RAMBUS INC (RMBS) reported annual revenue of $708 million in its most recent fiscal year, based on SEC EDGAR filings.
RAMBUS INC (RMBS) has a net profit margin of 32.6%. This is a strong margin indicating high profitability.
RAMBUS INC (RMBS) generated $333 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
RAMBUS INC (RMBS) has a debt-to-equity ratio of 0.02. This indicates a conservatively financed balance sheet.
RAMBUS INC (RMBS) reported earnings per share (EPS) of $2.11 in its most recent fiscal year.
RAMBUS INC (RMBS) has a return on equity (ROE) of 18.5%. This indicates the company generates strong returns for shareholders.
RAMBUS INC (RMBS) has a 5-year average gross margin of 78.5%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for RAMBUS INC (RMBS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
RAMBUS INC (RMBS) has a book value per share of $12.49, based on its most recent annual SEC filing.