A Business at a Glance
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RAMBUS INC
RMBS
$10.5B
Mkt Cap
$96.01
-6.96%
RAMBUS INC (RMBS) has a current P/E ratio of 45.5, 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 $10.4B. 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 0.07%.
Based on historical P/E analysis, RAMBUS INC (RMBS) appears expensive. The current P/E of 45.5 is 38% above its historical median of 32.9. The estimated fair value CAGR (P/E method) is 156.7%.
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 is a fabless semiconductor company providing memory interface chips and silicon intellectual property (IP) for data-intensive computing systems, with a primary focus on data center and artificial intelligence infrastructure. The company's memory interface chip portfolio includes Registering Clock Drivers (RCD), Multiplexed Registering Clock Drivers (MRCD), Multiplexed Data Buffers (MDB), Client Clock Drivers (CKD), Power Management Integrated Circuits (PMIC), Serial Presence Detect Hubs, and Temperature Sensors that enable high-performance DDR5 and LPDDR5 memory modules for servers and client systems. Rambus sells these chips directly and indirectly to memory module manufacturers, OEMs, and hyperscalers through a direct sales force and distributors, while outsourcing fabrication, assembly, and testing to third-party foundries and manufacturing contractors, allowing the company to maintain a capital-light model and focus resources on research, development, design, and marketing. The silicon IP segment comprises high-performance interface controllers (HBM, GDDR, PCIe, CXL) and comprehensive security IP solutions (hardware roots of trust, crypto cores, chip provisioning) sold to leading chip makers for integration into custom silicon and application-specific products serving AI, data center, government, and automotive applications. The company's competitive moat derives from over three decades of advanced semiconductor design expertise, a balanced and diversified portfolio addressing the critical memory-bandwidth bottleneck in high-performance compute systems, and industry-leading security IP that protects data at rest and in motion across accelerated computing environments.
【Strong AI-driven momentum】 Management expects the company to grow faster than the overall market in 2026, driven by continued RCD market share leadership, accelerating adoption of new products including MRDIMM, and expanding silicon IP design wins across AI and data center platforms. The silicon IP business is expected to grow 10–15% annually, with particular strength in HBM4, GDDR7, and PCIe 7.0 digital controller families as heterogeneous computing adoption expands. Product gross margins are expected to remain in the 60–65% range, consistent with the company's long-term model, supported by favorable product mix and continued manufacturing efficiencies. Management anticipates supply chain conditions to remain tight into 2027, which the company is managing through strategic inventory builds and strong relationships with manufacturing partners to support customer demand and capture market share gains.
| Metric | Target | Period |
|---|---|---|
| Product revenue growth | strong growth | FY 2026 |
Product revenue growth (FY 2026): “With that, we expect strong growth in 2026 and I'm confident in our long term trajectory.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 721M | 708M | 557M | 461M | 455M | 328M |
| Net Income | 230M | 230M | 180M | 334M | -14M | 18M |
| EPS | $2.13 | $2.11 | $1.65 | $3.01 | $-0.13 | $0.16 |
| Free Cash Flow | 335M | 333M | 200M | 173M | 213M | 195M |
| ROIC | 34.7% | 33.6% | 24.6% | 29.3% | 14.8% | 2.6% |
| Gross Margin | 79.5% | 79.6% | 80.2% | 77.6% | 76.3% | 78.6% |
| Debt/Equity | 0.00 | 0.02 | 0.03 | 0.03 | 0.07 | 0.42 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 259M | 260M | 183M | 189M | 77M | 24M |
| Operating Margin | 35.9% | 36.8% | 32.9% | 40.9% | 16.9% | 7.4% |
| ROE | 16.5% | 18.5% | 16.0% | 32.2% | -1.8% | 2.1% |
| Shares Outstanding | 108M | 109M | 109M | 111M | 110M | 115M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 297M | 296M | 337M | 393M | 231M | 228M | 246M | 328M | 455M | 461M | 557M | 708M | 721M |
| Gross Margin | 85.9% | 95.8% | 93.7% | 93.9% | 87.5% | 77.4% | 75.3% | 78.6% | 76.3% | 77.6% | 80.2% | 79.6% | 79.5% |
| R&D | 110M | 111M | 130M | 149M | 158M | 157M | 140M | 136M | 159M | 157M | 163M | 188M | 195M |
| SG&A | 75M | 71M | 95M | 111M | 104M | 101M | 86M | 91M | 107M | 108M | 104M | 115M | 119M |
| EBIT | 75M | 71M | 34M | 54M | -87M | -100M | -44M | 24M | 77M | 189M | 183M | 260M | 259M |
| Op. Margin | 25.4% | 24.1% | 10.0% | 13.8% | -37.6% | -44.0% | -17.9% | 7.4% | 16.9% | 40.9% | 32.9% | 36.8% | 35.9% |
| Net Income | 26M | 211M | 6.8M | -23M | -158M | -86M | -40M | 18M | -14M | 334M | 180M | 230M | 230M |
| Net Margin | 8.8% | 71.3% | 2.0% | -5.8% | -68.3% | -37.8% | -16.4% | 5.6% | -3.1% | 72.4% | 32.3% | 32.6% | 31.9% |
| Non-Recurring | 3.6M | 7.2M | 0 | -227K | 2.2M | 8.8M | 4.1M | 368K | 0 | 19M | 1.1M | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 20.9% | 25.3% | 4.7% | 6.5% | -13.7% | -7.6% | -3.8% | 2.6% | 14.8% | 29.3% | 24.6% | 33.6% | 34.7% |
| ROE | 7.2% | 46.0% | 1.3% | -4.1% | -15.6% | -8.8% | -4.4% | 2.1% | -1.8% | 32.2% | 16.0% | 18.5% | 16.5% |
| ROA | 4.0% | 32.4% | 0.9% | -2.7% | -11.6% | -6.4% | -3.2% | 1.5% | -1.4% | 26.5% | 13.4% | 16.0% | 15.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 76M | 77M | 96M | 117M | 87M | 129M | 185M | 209M | 230M | 196M | 231M | 360M | 366M |
| Free Cash Flow | 69M | 71M | 87M | 108M | 76M | 122M | 156M | 195M | 213M | 173M | 200M | 333M | 335M |
| Owner Earnings | 21M | 25M | 24M | 35M | 55M | 78M | 130M | 155M | 179M | 136M | 155M | 271M | 299M |
| CapEx | 7.2M | 6.1M | 8.6M | 9.4M | 11M | 6.5M | 30M | 14M | 17M | 23M | 31M | 27M | 31M |
| Maint. CapEx | 40M | 37M | 50M | 55M | 11M | 24M | 30M | 27M | 16M | 15M | 31M | 35M | 12M |
| Growth CapEx | 0 | 0 | 0 | 0 | 17K | 0 | 0 | 0 | 1.9M | 8.5M | 0 | 0 | 18M |
| D&A | 40M | 37M | 50M | 55M | 11M | 24M | 30M | 27M | 16M | 15M | 31M | 35M | 12M |
| CapEx/OCF | 9.4% | 8.0% | 8.9% | 8.0% | 12.4% | 5.0% | 16.0% | 6.6% | 7.6% | 11.9% | 13.3% | 7.5% | 8.4% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 100M | 0 | 50M | 50M | 0 | 50M | 100M | 100M | 101M | 113M | 7.1M | 7.5M |
| Buyback Yield | N/A | 7.2% | N/A | 3.2% | 6.0% | N/A | 2.6% | 3.0% | 2.6% | 1.3% | 1.9% | 0.1% | 0.1% |
| Stock-Based Comp | 15M | 15M | 21M | 27M | 22M | 26M | 26M | 27M | 36M | 45M | 45M | 54M | 54M |
| Debt Repayment | 0 | 0 | 0 | 3.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -185M | -168M | -46M | -78M | -136M | -213M | -308M | -123M | -258M | -395M | -452M | -737M | -786M |
| Cash & Equiv. | 154M | 144M | 135M | 226M | 116M | 102M | 129M | 108M | 125M | 95M | 100M | 183M | 786M |
| Long-Term Debt | 115M | 119M | 126M | 173M | 142M | 149M | 156M | 0 | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.29 | 0.23 | 0.23 | 0.44 | 0.14 | 0.20 | 0.21 | 0.42 | 0.07 | 0.03 | 0.03 | 0.02 | 0.00 |
| Interest Coverage | 3.0 | 5.8 | 2.6 | 4.0 | -5.3 | -10.2 | -4.3 | 2.3 | 41.1 | 126.6 | 129.2 | 189.5 | 203.0 |
| Equity | 392M | 527M | 553M | 572M | 1.0B | 975M | 913M | 862M | 779M | 1.0B | 1.1B | 1.4B | 1.4B |
| Total Assets | 588M | 718M | 783M | 891M | 1.4B | 1.3B | 1.3B | 1.2B | 1.0B | 1.3B | 1.3B | 1.5B | 1.5B |
| Total Liabilities | 197M | 191M | 231M | 319M | 349M | 368M | 339M | 370M | 233M | 220M | 222M | 165M | 140M |
| Intangibles | 89M | 64M | 132M | 92M | 60M | 55M | 36M | 58M | 51M | 29M | 17M | 10M | 8.5M |
| Retained Earnings | -762M | -604M | -615M | -636M | -204M | -286M | -358M | -435M | -513M | -286M | -154M | 77M | 137M |
| Working Capital | 280M | 287M | 165M | 239M | 458M | 578M | 614M | 417M | 401M | 542M | 608M | 868M | 898M |
| Current Assets | 315M | 316M | 217M | 372M | 528M | 665M | 700M | 684M | 527M | 631M | 690M | 989M | 1000M |
| Current Liabilities | 35M | 28M | 51M | 133M | 69M | 86M | 86M | 267M | 127M | 89M | 82M | 121M | 102M |
| Per Share Data | |||||||||||||
| EPS | 0.22 | 1.80 | 0.06 | -0.21 | -1.46 | -0.77 | -0.36 | 0.16 | -0.13 | 3.01 | 1.65 | 2.11 | 2.13 |
| Owner EPS | 0.18 | 0.21 | 0.22 | 0.32 | 0.51 | 0.70 | 1.16 | 1.35 | 1.63 | 1.23 | 1.42 | 2.48 | 2.77 |
| Book Value | 3.29 | 4.48 | 4.86 | 5.25 | 9.35 | 8.74 | 8.12 | 7.53 | 7.08 | 9.36 | 10.28 | 12.49 | 12.88 |
| Cash Flow/Share | 0.64 | 0.66 | 0.84 | 1.08 | 0.81 | 1.15 | 1.65 | 1.83 | 2.09 | 1.76 | 2.12 | 3.30 | 2.24 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 119.1M | 117.4M | 113.7M | 108.9M | 108.2M | 111.6M | 112.4M | 114.6M | 110.1M | 110.9M | 109.0M | 109.2M | 108.1M |
| Valuation | |||||||||||||
| P/E Ratio | 52.7 | 6.6 | 233.5 | N/A | N/A | N/A | N/A | 182.8 | N/A | 22.8 | 32.9 | 44.6 | 45.0 |
| P/FCF | 19.9 | 19.6 | 18.3 | 14.4 | 10.9 | 12.6 | 12.6 | 17.2 | 18.3 | 44.1 | 29.6 | 30.9 | 31.0 |
| EV/EBIT | 15.9 | 17.2 | 46.0 | 27.9 | N/A | N/A | N/A | 131.5 | 46.8 | N/A | N/A | N/A | 37.1 |
| Price/Book | 3.5 | 2.6 | 2.9 | 2.7 | 0.8 | 1.6 | 2.1 | 3.9 | 5.0 | 7.3 | 5.3 | 7.5 | 7.5 |
| Price/Sales | 4.6 | 5.0 | 4.3 | 3.6 | 5.6 | 5.8 | 6.6 | 7.7 | 6.7 | 13.0 | 10.8 | 11.1 | 14.4 |
| FCF Yield | 5.0% | 5.1% | 5.5% | 7.0% | 9.2% | 7.9% | 7.9% | 5.8% | 5.5% | 2.3% | 3.4% | 3.2% | 3.2% |
| Market Cap | 1.4B | 1.4B | 1.6B | 1.6B | 834M | 1.5B | 2.0B | 3.4B | 3.9B | 7.6B | 5.9B | 10.3B | 10.4B |
| Avg. Price | 11.43 | 12.64 | 12.67 | 13.17 | 11.97 | 11.73 | 14.42 | 22.17 | 27.77 | 54.03 | 54.93 | 71.90 | 96.01 |
| Year-End Price | 11.60 | 11.88 | 14.01 | 14.27 | 7.71 | 13.77 | 17.44 | 29.25 | 35.35 | 68.60 | 54.24 | 94.11 | 96.01 |
RAMBUS INC passes 7 of 9 quality checks, indicating strong fundamentals.
RAMBUS INC trades at 45.5x 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 31.1x 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 +13.5%.
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.
Based on recent SEC filings and earnings disclosures, Management expects the company to grow faster than the overall market in 2026, driven by continued RCD market share leadership, accelerating adoption of new products including MRDIMM, and expanding silicon IP design wins across AI and data center platforms. The silicon IP business is expected to grow 10–15% annually, with particular strength in HBM4, GDDR7, and PCIe 7.0 digital controller families as heterogeneous computing adoption expands. Product gross margins are expected to remain in the 60–65% range, consistent with the company's long-term model, supported by favorable product mix and continued manufacturing efficiencies. Management anticipates supply chain conditions to remain tight into 2027, which the company is managing through strategic inventory builds and strong relationships with manufacturing partners to support customer demand and capture market share gains.
Based on recent SEC filings and earnings calls, RAMBUS INC (RMBS) has provided the following forward guidance: Product revenue growth: strong growth (FY 2026).